Used car prices up, new car prices down in 2025’s second quarter

AutoTrader’s price index report for the second quarter shows used vehicle prices going against seasonal norms and increasing in price compared to the same time last year while new vehicle prices continue to decline year-over-year.

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Since March, consumer behaviour has been driven by what AutoTrader calls the “pull-forward” effect, where vehicles were bought ahead of anticipated U.S. tariffs, tighter inventory, and rising prices.

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As of June 2025, the report shows used vehicle prices have jumped 3.6% year-over-year, landing at an average of $37,664, while new vehicle prices have dropped 3.5% to $64,445.

AutoTrader says with prices for both new and used vehicles expected to rise in the second half of 2025, early buying could be a smart strategy.

The report also says new vehicle inventory held steady early in the year, keeping prices in check; however, inventory is now down 12% year-over-year leading to used vehicle prices rising for four consecutive months and now sitting above 2024 levels with continued price increases expected through the second half of 2025.

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Used car inventory is down 16.8% and demand surging so if new vehicle availability dips further, expect even more Canadians to turn to used vehicles — driving prices higher still.

Electric Vehicles (EVs) are proving to be the exception with prices for both new and used EVs falling as demand for them cools due to federal incentive cuts and policy uncertainty.

AutoTrader says ZEV (Zero Emission Vehicle) sales plunged nearly 45% in March and over 28% in April, and data shows confidence in EV adoption is starting to slip.