Canada’s used-vehicle market is showing signs of settling into a more stable pattern as the industry moves through the summer, according to CARFAX Canada’s Mid-Year Used Vehicle Market Insights report.

Used-vehicle sales remain below 2025 levels, but the pace has improved from the weaker start to 2026. In June, 277,361 used vehicles changed hands, a 1.3 per cent increase from May. Transactions were still down 2.9 per cent compared with June 2025, although that decline was smaller than those recorded earlier in the year.

For the aftermarket, the shift toward a more balanced used-vehicle market could have an important secondary effect. During the recent period of strong used-vehicle prices, dealers had a significant incentive to actively market to owners of late-model vehicles, encouraging them to sell or trade. Every vehicle pulled into that retail cycle potentially meant one fewer vehicle—and one fewer customer—in the independent service channel.

A more stable market may reduce that incentive. If owners are less tempted to cash in on unusually high resale values, and used vehicles remain relatively affordable, more drivers may choose to keep their existing vehicles rather than sell or trade them. That could help keep vehicles in the independent repair and maintenance ecosystem for longer.

For the first six months of 2026, approximately 1.49 million used vehicles were sold, down 4.2 per cent from the same period last year. The figures suggest demand is recovering gradually, but remains softer than in 2025.

At the same time, rising inventory is giving buyers more choice. Used-vehicle inventory jumped 15.5 per cent month-over-month in June and was 2.5 per cent higher than a year earlier. CARFAX Canada says the increase represents the highest inventory level recorded so far this year.

Prices have also largely stabilized. The national average listing price for used vehicles from model year 2000 or newer reached $31,487 in June, up slightly from May but 4.7 per cent below June 2025. Average prices have remained in a relatively narrow range of roughly $31,000 to $31,500 for the past five months.

Regional differences remain significant, however; Vancouver continues to be Canada’s most expensive major used-vehicle market, with average listings exceeding $44,995, up 10.2 per cent year-over-year. Quebec remains among the most affordable markets, while Atlantic Canada is seeing year-over-year price growth.

Electric vehicles are another notable area of movement. Used EV prices rose to an average of $42,834 in June, reversing some of the declines seen late last year and early in 2026. Growing model availability and greater consumer familiarity are helping support interest.

The months ahead will determine whether this trend develops further. If inventory continues to rise while demand softens, the used-vehicle market could become less seller-driven, creating a potentially more favourable environment for consumers—and, indirectly, for the aftermarket.

Read the full Mid-Year CARFAX Canada Used Vehicle Market Insights Report here.