Used Car Prices Are Finally Stabilizing in Canada — Except If You Want a Used EV
Used car prices in Canada are stabilizing, but used EV prices are showing a different trend in 2026
If you have been watching used car prices in Canada and waiting for them to settle down, there are genuinely good news – with one significant exception.
The good news: used car prices in Canada have leveled off
According to Clutch’s June 2026 Used Car Pricing Report, 39 of Canada’s 50 best-selling used models are now cheaper than a year ago. Comparable models cost about 1.3% less on average. More notably, used vehicle prices have stayed essentially flat since September 2025. This is the market’s longest period of price stability in years.
The exception: used EVs are gaining value
Here’s what breaks the pattern. Cars are supposed to depreciate — it’s one of the most reliable rules in the auto market. Used car prices in Canada have generally stabilized, but used EVs are moving in the opposite direction. Industry data shows used electric vehicle prices climbing through 2026, an unusual dynamic that multiple auto analysts have flagged because it runs against how used vehicles normally behave.
Why this is happening now
Two forces are pushing in the same direction. First, gas prices have stayed elevated for months. These trends are also influencing used vehicle prices across Canada. This is affecting Canada’s used vehicle market, especially as buyers compare fuel costs with EV prices. Conflict-related disruptions have affected oil shipping routes. This makes the fuel-cost gap between gas and electric vehicles more noticeable to shoppers. Second, the federal EVAP program has renewed interest in EVs. Some of that demand is spilling into the used market. Used EV inventory remains comparatively limited.
What used car prices in Canada mean for buyers
If you’re shopping for a used gas-powered vehicle, this is a genuinely favourable window — prices have stopped climbing for the first time in a long while. If you specifically want a used EV, don’t assume it’ll come at the steep discount used EVs offered a couple of years ago. Compare a new EV after applying the EVAP incentive with a similar used model. The price gap between them has narrowed.
FAQ
Are used car prices going to keep falling? Recent data shows stabilization more than a continued decline — six months of essentially flat pricing, rather than the sharp drops some buyers may be hoping for.
Why are used EVs getting more expensive? High gas prices and renewed federal incentives have pushed more buyers toward EVs generally, and that demand is landing on a limited used EV inventory, pushing prices up rather than down.
Is it better to buy a new or used EV right now? It depends on the vehicle. Compare a new EV’s price after the EVAP incentive with similar used listings. The price gap has narrowed recently.
