The Canadian automotive market demonstrated resilience in Q2 2025, with stable performance in both used and new vehicle segments. According to the latest AutoTrader Price Index, average used car prices increased by 3.6% year-over-year, supported by a 1.8% rise in estimated used vehicle sales for the quarter and a 2% increase on a year-to-date basis. New car sales also showed notable momentum, with a 5.6% increase year-to-date, despite a 3.5% year-over-year dip to average price.

New vehicle inventory tightened due to a higher consumer demand, likely caused by ongoing market uncertainty, and limited production. The report highlights how reciprocal tariffs limiting exports to the U.S. have helped stabilize used inventory supply. However, inventory pressures remain as the market adjusts to shifting trade-ins and demand dynamics.

While long-term forecasting remains challenging amid tariff uncertainties, the current market conditions suggest sustained demand and price strength in the used car sector, and cautious optimism for new vehicle sales.

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