Canada’s used car prices rose in 2025 — but many vehicles actually got cheaper. What to know if you’re in the market this year

Canada’s used-car market wrapped up 2025 with prices still elevated. The national average selling price reached $33,718 in November, up 4.6% year over year, even as many vehicles quietly became more affordable throughout the year (1).

The contradiction has less to do with inflation and more to do with behavior. Larger, newer and premium vehicles — particularly SUVs, trucks and electrified models — made up a growing share of sales. This pulled the average higher even while like-for-like prices softened across much of the market.

And that dynamic has made it harder for shoppers to separate real value from year-end pricing theatre.

“A real deal is one that’s priced below the typical market range for the same year, make, model, mileage and condition,” said Dan Park, CEO of Clutch, in an interview with Money.ca. “At year-end, many price cuts simply bring an inflated starting price closer to market.”

Many models got cheaper in 2025

Clutch’s Rearview Recap 2025 shows that the upward pressure on prices came less from across-the-board increases and more from what entered and moved through the used-car market.

SUVs continued to take share from traditional cars, with compact and subcompact crossovers increasingly replacing sedans as the entry-level choice for many buyers.

Trucks, meanwhile, remained a powerful force on pricing: they account for a smaller share of sales than SUVs, but their much higher transaction prices mean even modest shifts can move the national average. Add in a rising share of electrified vehicles and higher-trim inventory, and the people’s choice becomes clear.

For consumers, this distinction matters. A rising average does not mean every used car is getting more expensive. But it does mean that more affordable options are becoming harder to find, especially if buyers fixate on newer model years or popular body styles.

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Why year-end “deals” can be misleading

Park says year-end promotions often rely on presentation rather than true value. The most common tactic is anchoring: listing a vehicle at an ambitious price, then advertising a drop that merely brings it back in line with the market.

Another is emphasizing trims, features, or headline averages without adjusting for what buyers actually pay for those extras in the used market.

“If the national average price is up, a seller can frame almost anything as ‘below average,’ even if that specific model has been getting cheaper all year,” Park told Money.ca.

His advice is to ignore the story around the discount and focus on like-for-like comparisons.

If a vehicle is still priced above comparable listings with similar mileage and condition, the deal is likely cosmetic. Buyers who benchmark against real market ranges, rather than advertised markdowns, are far more likely to find genuine value.

Where value still exists for cost-conscious shoppers

Despite the shift toward larger and pricier vehicles, affordability has not vanished — but it has become more concentrated.

Value remains strongest in high-volume, practical models where supply is relatively healthy and ownership costs are predictable. Compact sedans continue to anchor the sub-$15,000 segment, while familiar, value-oriented SUVs still dominate the under-$20,000 range.

On the electrified side, the picture is changing quickly. Used EV prices declined year-over-year as supply improved, making mainstream models more accessible than in prior years — particularly in provinces with strong charging infrastructure.

“Value hasn’t disappeared,” Park said. “It’s shifted toward models with depth of supply and more predictable ownership costs.”

The tradeoff, however, is age. Lower-priced vehicles naturally skew older, which can introduce higher maintenance risk. That has pushed many buyers to look beyond sticker price and think more carefully about total cost of ownership.

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What affordability really means in 2026

As higher-trim and electrified vehicles make up more of the used market, Park says Canadians need to broaden how they define affordability.

“Sticker price is only part of the equation,” he said. Insurance, fuel or charging costs, maintenance and resale value all shape what a car actually costs over time. A cheaper vehicle with higher insurance or repair risk can quickly erase any upfront savings, while a more expensive model with lower running costs may pencil out better in the long run.

Clutch’s data also shows that where you shop matters, too.

Provinces with older, value-heavy inventory continue to offer more options below key affordability thresholds, while markets with newer or more electrified fleets tend to have fewer low-price choices. There could be meaningful savings on the road for buyers willing to shop around, or even outside their home province.

What to watch if you’re buying in early 2026

Looking ahead, Park expects prices to remain sensitive to inventory mix rather than sudden shifts in demand.

“Prices may drift upward again, not because cars are suddenly getting more expensive, but because newer, larger and electrified vehicles and hybrids are entering the used market,” Park said.

“EVs and hybrids are likely to keep gaining share, while affordability at the very low end — especially under $20,000 — will remain tight,” noted Park.

That puts a premium on both timing and flexibility. Those who are open to buying older model years, different body styles, or even traveling in order to buy out of province are better positioned than those waiting for prices to fall across the board.

“In 2026, the advantage will go to informed buyers who understand how the market is shifting,” Park said, “not those waiting for a single headline number to turn in their favour.”

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Clutch (1)