Used vehicle sales in Canada declined in August as affordability challenges and economic uncertainty continued to affect consumer demand, according to a new report from CARFAX Canada.
According to the Fall edition of the company’s Used Vehicle Market Insights report, used vehicle transactions totalled 258,202 in August, down 6.9 per cent from July and 6.6 per cent from a year earlier.
The report found used vehicle inventory increased 18.9 per cent month-over-month, reaching its highest level of 2026. Despite the increase in available inventory, the national average used vehicle listing price was $30,776 in August, down 0.3 per cent month-over-month and 2.7 per cent year-over-year.
According to the report, growing inventory levels combined with declining sales suggest supply may be starting to outpace demand, increasing the likelihood of a price correction later this fall.
“Sourcing the right inventory remains one of the biggest challenges facing dealers today. In a market where consumer demand continues to evolve, every inventory decision carries greater weight,” said Shawn Vording, president of CARFAX Canada.
The report also found used electric vehicle prices fell 1.8 per cent month-over-month and 5.4 per cent year-over-year as inventory reached a new high for 2026. Tesla vehicles accounted for 64 per cent of used EV listings.
