AutoTrader’s Q3 2026 Price Index Report points to a mixed Canadian automotive market in Q3 2026, as new vehicle sales continued to grow while used vehicle sales softened slightly. Average new vehicle prices declined 1.7% year over year to $62,176, while average used vehicle prices dipped 1.0% to $36,549. New electric vehicle prices dropped 8% as more affordable models entered the market.
Inventory continues to shape pricing. New vehicle inventory rose approximately 20% year over year on a same-store basis, though availability varied by automaker. Greater supply relative to demand is putting downward pressure on prices, while automaker incentives are helping ease monthly payments. Used vehicle supply remains tight and is expected to stay constrained into 2027, likely keeping prices elevated in the near term.
Affordability concerns and trade uncertainty are also influencing purchase decisions. A recent AutoTrader survey of 1,167 Canadian shoppers found that nearly half of those planning to buy a vehicle had delayed their purchase. Despite these delays, purchase intent remains strong: 65% expect to buy within 12 months, including 31% within three months. Among shoppers planning to purchase within six months, 81% say they are likely to buy by year-end, ahead of the tariff deadline.
