Canada’s used vehicle market is beginning to stabilize as inventory builds and price volatility eases, according to CARFAX Canada’s Q1 2026 Used Vehicle Market Insights report.
The report shows the national average listing price reached $31,907 in March, up 0.5 per cent month-over-month but down 2.3 per cent year-over-year, signalling a market that is leveling off after several years of disruption.
Inventory is also rising. Listings climbed 31.6 per cent from February and were up 3.1 per cent compared with March 2025, reaching their highest level since August of last year.
“With the spring selling season underway, the Canadian used vehicle market continues to show signs of normalization,” the report said.
SUVs continue to dominate, accounting for 55.3 per cent of used inventory, up from 51.1 per cent a year earlier, while passenger cars have declined to 27.0 per cent of listings. Pricing for passenger cars is also under pressure, down 4.3 per cent year-over-year.
Electric vehicles remain volatile, with used EV prices falling 6.5 per cent year-over-year as supply dynamics shift and new affordability programs take effect.
For auto dealers, the data points to a more balanced (but more competitive) market. Rising inventory may ease sourcing challenges, but it could also put pressure on margins as pricing stabilizes and demand fragments across segments.
Looking ahead, CARFAX Canada said market performance will depend heavily on consumer confidence, with interest rates, fuel costs and broader economic uncertainty expected to influence buying behaviour in the months ahead.
