Canada’s used-vehicle market is finally showing clearer signs of easing after a long period in which high prices became almost routine. Clutch’s latest national pricing data shows the average vehicle in its Canadian used-market dataset sold for $33,752 in August 2026, down slightly from July and 0.5% below a year earlier. It was the first year-over-year decline since March 2025.
The national figure only tells part of the story. Alberta recorded one of the country’s sharpest drops, with its average falling 3.5% to $36,621. In fact, Alberta’s decline was large enough to account for more than the entire reduction in Canada’s average before rising prices elsewhere offset some of the drop. For buyers, that creates a market that looks increasingly different depending on province, vehicle age and powertrain.
Canada’s National Average Has Finally Moved Below Last Year
The average used vehicle in Clutch’s dataset sold for $33,752 in August, compared with $33,786 in July. That month-over-month movement was tiny at just 0.1%, but the year-over-year comparison was more significant. Prices were 0.5% below August 2025, marking the first annual decline since March 2025 after 16 months of year-over-year increases. The comparison is particularly notable because August 2025 had been a strong point for the market, when the annual increase reached 7.9%. Rather than a sudden price collapse, the latest number suggests the market has gradually shifted from inflation toward more ordinary depreciation as vehicle supply and buyer behaviour normalize.
Looking at comparable vehicles makes that change clearer. When Clutch compared the same models at the same vehicle age, prices were 2.2% lower than a year earlier. The median transaction also fell more sharply than the average, reaching $28,999 compared with $29,888 one year earlier, a decline of about 3%. The difference matters because the overall average is being supported by Canadians buying newer and larger vehicles. AutoTrader’s second-quarter data pointed in the same general direction, reporting a 2.6% year-over-year decline in average used-vehicle prices while continuing to describe affordability as a major pressure on shoppers.
Alberta Accounted for More Than the Entire National Decline
Alberta stands out in the provincial numbers. Its average used-vehicle transaction dropped from $37,969 in August 2025 to $36,621 this August, a 3.5% decline. On an age-adjusted basis, comparable Alberta vehicles were 3.1% cheaper. Clutch calculated that Alberta alone reduced Canada’s national average by $193, even though the national average itself declined by only $158. British Columbia, Saskatchewan, Manitoba and Ontario also pulled the Canadian figure lower, but none came close to Alberta’s influence. Manitoba posted a 2.9% annual decline, Saskatchewan fell 1.7%, British Columbia slipped 1.1%, and Ontario was nearly flat at a 0.2% decrease.
The apparent contradiction is explained by provinces moving in opposite directions. Quebec’s average transaction climbed 1.9% to $30,097 and added an estimated $117 to the national average. Yet comparable Quebec vehicles actually became 1.7% cheaper once model and age were controlled for. Buyers there simply purchased a more expensive mix of vehicles. Ontario showed a similar effect: its average remained almost unchanged at $33,783 while comparable vehicles declined 1.8%. Those differences illustrate why a single national number can hide substantial changes underneath, especially when Canadians shift between older cars, near-new SUVs and higher-priced trucks.
Vehicles Are Taking Longer to Sell, Giving the Market More Breathing Room
Pricing is not the only indicator suggesting conditions have become less frantic. Clutch found that used vehicles were taking noticeably longer to sell than they did during the exceptionally fast market of late summer 2025. August and September of last year were the fastest-selling months in its records, with more than one-third of vehicles disappearing within two weeks of being listed. This August, fewer than three in 10 sold that quickly. Overall selling times had moved back toward levels seen in August 2024, suggesting buyers no longer face quite the same pressure to make an immediate decision before another shopper takes the vehicle.
Alberta experienced the biggest year-over-year slowdown in selling times of any region tracked, while Manitoba was close behind. That matters because a vehicle sitting unsold for several weeks can create more motivation for a dealer or private seller to negotiate. Wholesale markets are also showing weakness. Canadian Black Book reported a 0.34% weekly drop in national wholesale pricing for the week ending August 15 and another 0.16% decline for the week ending August 29. Wholesale movements do not translate immediately into identical retail discounts, but sustained softness can influence the prices dealers are willing to pay for replacement inventory.
Near-New Vehicles Are Creating Some of the Most Noticeable Discounts
One of the biggest changes is happening among vehicles only a couple of years old. Vehicles from the 2024 model year represented 16.8% of August 2026 used sales in Clutch’s data, compared with 13.8% for the equivalent two-year-old cohort a year earlier. That means roughly one in six used vehicles sold was two years old. At the same time, those relatively fresh vehicles were not commanding the same premiums. A two-year-old SUV averaged $38,044 in August, down from $41,092 for the comparable age group one year earlier, a difference of more than $3,000.
Several familiar models show how quickly near-new depreciation can change. Clutch reported that a 2024 Nissan Rogue sold for 14% less than a 2023 Rogue did at the same point last year. Two-year-old Jeep Compass prices were down about 12%, while two-year-old Nissan Sentras were down roughly 11%. Even the Ford F-150 was affected, with two-year-old examples selling for about 8% less. Those averages do not mean every individual vehicle has lost the same amount; mileage, trim, condition, accident history and location remain important. Still, the figures suggest buyers considering nearly new vehicles have more room to compare alternatives than they did during tighter markets.
SUVs Still Dominate Canada, but Their Prices Are Falling Too
Canada remains firmly an SUV market. SUVs represented 65% of the used vehicles sold in Clutch’s August data, the highest share recorded in its dataset. Cars accounted for just 20.7%, while trucks represented 14.3%. That preference naturally lifts the overall national average because an SUV sold for roughly $8,350 more than the average passenger car. Even so, the popularity of SUVs has not protected them from depreciation. Nationally, the average SUV transaction was $32,702, down 2% from a year earlier. Cars averaged $24,344, down 1%, while trucks averaged $46,952, a 3.1% annual decline.
Alberta’s weakness was visible across all three categories. The average used SUV in the province sold for $34,031, 5% less than a year earlier. Cars averaged $25,076, a decline of 2.7%, while trucks fell 3.7% to $49,651. That broad-based movement is important in a province where pickups and utility vehicles play a major role in both personal and commercial transportation. It means Alberta’s lower overall average was not simply produced by an unusual influx of inexpensive compact cars. Multiple major vehicle categories were selling for less, reinforcing the evidence that softer pricing was widespread within the provincial market.
The Biggest Price Relief Is Appearing at the Affordable End
For Canadians shopping with tighter budgets, the distribution of price changes may be more important than the national average. Clutch found that the least-expensive 10% of used vehicles sold for 4.5% less than they did a year earlier. The lower quarter of the market was down 2.3%, while the median transaction declined 3%. By contrast, prices around the 75th percentile were essentially unchanged at roughly $41,000, and the most expensive 10% of vehicles actually sold for 1.1% more. In other words, most of the visible price relief has been concentrated in the part of the market where affordability matters most.
There are also still meaningful numbers of vehicles clearing traditional budget thresholds. In August, 22.4% of cars sold for less than $15,000, while 21.2% of SUVs sold below $20,000 and 18.2% of trucks sold below $30,000. The Hyundai Elantra was especially prominent among lower-priced cars, representing 11% of car sales below $15,000. Among SUVs under $20,000, the Ford Escape led the category, while the F-150 accounted for more than one-fifth of truck sales below $30,000. Those figures show that falling averages are beginning to translate into more practical options rather than existing only in high-priced segments.
Used EVs Are Moving Against the Broader Market
Electric vehicles remain a striking exception to the overall decline. When Clutch compared vehicles of the same age and model, used EV prices were 1.2% higher than they had been a year earlier. Comparable gasoline vehicles fell 2.4%, while hybrids declined 1.4%. The average used EV sold for $42,069, and EVs were also the only fuel category in the report that sold faster than a year earlier. That creates an unusual situation in which the broader used market is softening while a growing group of electrified vehicles is holding or gaining value on a comparable basis.
Tesla illustrates why headline averages can be misleading. The Model 3’s average transaction price fell 9.5% to $28,897, but Clutch found that a Model 3 of the same age was worth almost exactly what it had been the previous August. The lower overall average therefore reflected changes in the age and type of vehicles being purchased rather than a comparable 9.5% collapse in values. Tesla’s share of used EV transactions also fell from 32.2% to 22.5%. AutoTrader independently reported that EV demand bucked broader automotive trends during the second quarter, with electric-vehicle sales strengthening even as overall used-vehicle demand softened.
Lower Used Prices Do Not Mean Vehicle Affordability Is Fixed
Falling sticker prices provide some relief, but Canadian buyers are still operating in an expensive ownership environment. Statistics Canada reported that consumer prices overall were 3% higher in August than a year earlier. Gasoline remained a particularly large pressure, rising 22.8% year over year. Financing also remains part of the calculation. The Bank of Canada kept its overnight policy rate at 2.25% on September 2, a major improvement from the much higher interest-rate environment earlier in the decade but not a return to the ultra-low borrowing conditions Canadians once experienced. Actual auto-loan costs continue to vary substantially according to lender, term, credit profile and vehicle age.
AutoTrader has also cautioned that affordability remains one of the main forces limiting demand. Its second-quarter analysis found stronger purchasing among prime borrowers but weaker activity among subprime consumers, suggesting that modestly lower vehicle prices have not eliminated household budget pressures. The next few months will show whether used prices continue falling or simply settle into a narrower range. Clutch notes that September and October 2025 had relatively high comparison points, meaning annual declines could widen even without dramatic month-to-month price cuts. For now, the clearest change is that depreciation has returned to much of the market—and Alberta is experiencing that adjustment faster than most provinces.
