The Canadian automotive market held steady through Q3 2025, as easing demand and improving inventory levels balanced out the effects of earlier tariff-driven fluctuations. According to our Q3 2025 AutoTrader Price Index, average used vehicle prices slightly dipped over the quarter yet remain 3.2% higher year-over-year. New vehicle prices softened 4.9% year-over-year as inventory availability improved across many segments.

Following an exceptionally active first half of the year, market activity normalized in the quarter. Used vehicle sales eased ever so slightly, by -1.4% year-over-year, while new vehicle sales continued to grow by 2.5% over the same period. Despite this stabilization, consumer sentiment strengthened noticeably, with research indicating an overall uptick in vehicle purchase intentions for the next six months, up from 23% in May to 28% in August.

This increase in purchase intent is being driven by new car intenders, signaling a positive shift in buyer confidence and stronger momentum in the market. Combined with improving supply conditions, stable monthly payments, and gradual inventory recovery, these trends suggest the market is reaching a more balanced and sustainable pace as we approach the end of the year.

Click here to get your copy of the Q3 2025 AutoTrader Price Index.