Canada’s used vehicle market posted a modest recovery in April, with sales increasing month-over-month even as overall demand remained below year-ago levels.
According to CARFAX Canada’s June 2026 Used Vehicle Market Insights report, 254,881 used vehicle transactions were recorded in April, up 1.2 per cent from March but down 7.2 per cent compared with April 2025.
The report found used vehicle inventory rose 21.6 per cent month-over-month as dealers prepared for the summer selling season. However, inventory remained essentially flat year-over-year, reflecting ongoing supply constraints tied to reduced new vehicle production and lower lease returns earlier in the decade.
Used vehicle prices also showed signs of stability. The national average listing price reached $31,619 in April, up 0.8 per cent from March but down 3.8 per cent from a year earlier. CARFAX Canada said prices have largely plateaued since February after declining significantly from 2025 levels.
Consumer perceptions of value appear to be improving. A CARFAX Canada survey found 75 per cent of Canadians who purchased a used vehicle within the past year believed they received good or excellent value for money, while 65 per cent said used vehicle prices were at least somewhat reasonable.
The report also highlighted growing interest in electric vehicles. Among Canadians planning to purchase a used vehicle within the next year, 22 per cent said they are considering a battery electric vehicle. However, battery electric vehicles accounted for just 4 per cent of used vehicle listings in April, while the average used EV listing price rose 4.7 per cent month-over-month to $40,893.
Looking ahead, CARFAX Canada said consumer confidence could be influenced by ongoing economic uncertainty, the Bank of Canada’s decision to maintain its key interest rate at 2.25 per cent and the upcoming review of the Canada-United States-Mexico Agreement.
