Canadians looking to buy a used vehicle may find some small price relief amid years of soaring costs, though the prices remain higher than a year ago.
New data from Canadian Black Book shows the average listing price for a used vehicle was $37,260 in the week ending Nov. 1.
That’s down slightly from about a month earlier at $37,650, and nearly a thousand dollars less than the average $38,200 in June.
The data comes as affordability and value remain priorities for many Canadians struggling with the high cost of living, rising unemployment and an uncertain economy brought on by the trade war and U.S. tariffs.
Despite more recent declines, prices are still elevated compared with a year ago, when the average listing price was $34,250 in the week ending Nov. 2, 2024.
Autotrader reports that in September, the average used car price was $36,911, which was up 3.2 per cent from a year earlier but down from $37,664 in June.
For a new vehicle, the average price in Canada was $63,264 in September, which is down from $64,445 in June, according to Autotrader.
The Canadian Black Book describes a stable supply of used vehicles available for purchase on the wholesale market overall despite “economic uncertainty” and “political factors” — alluding to the trade war and tariffs.
Get daily National news
Get the day’s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.
At the same time, demand for those vehicles by consumers remains strong for now.
“Sales rates across auction lanes have shown ongoing fluctuations, influenced by economic uncertainty, political factors, and sellers maintaining firm floor prices,” the Canadian Black Book says.
“Supply has stabilized and returned to regular levels; however, upstream channels continue to hold priority sale access to inventory. Buyer demand for high-quality vehicles at auctions on both sides of the border persists.”
This means that although wholesale used car buyers may be faced with inconsistent options at times, there is still a good selection of used cars available for would-be buyers.
If there are lots of cars available, that could help keep prices stable for potential buyers.
But while there are used cars available, buyers may not be as eager right now to make a big purchase because of general affordability concerns.
Prices may fall even further if demand for cars falls, and vehicles currently available for purchase aren’t selling fast enough to make room for more on the way.
“For this economic climate, the car markets in general have digested a rising unemployment rate and rising inflation,” says Daniel Ross, senior manager of industry insights and residual value strategy at Canadian Black Book.
“Overall, personal finances are getting worse in expectation of probably a retail goods market for the holidays that is probably going to be kind of weak, and that’s first seen here in the used car market.”
A recent survey from PwC Canada showed the majority of Canadians are planning to pull back on spending during the holiday shopping season, which means a big purchase item like a vehicle may be lower on the list of priorities right now.
On Oct. 29, the Bank of Canada cut its benchmark interest rate by a quarter per cent to 2.25 per cent, and cited the weaker economy amid tariffs and the trade war and rising unemployment.
By cutting rates, the central bank aims to give the economy some room for businesses to invest and consumers to spend, because borrowing rates may be lower for many.
With lower interest rates, financing or leasing a vehicle could become more affordable as car dealerships may be able to offer more competitive borrowing rates for consumers.
© 2025 Global News, a division of Corus Entertainment Inc.
