USED VEHICLE PRICES ARE UP IN ALBERTA ON STRONG SALES IN 2025: REPORT
Used vehicle prices are on the rise in Alberta, where the average price of cars already trends higher than elsewhere in Canada, according to a report from AutoTrader.
Though Canada’s car price index is relatively similar across the country, AutoTrader vice president of insights and intelligence, Baris Akyurek, said Alberta average prices trend slightly higher because of consumer preferences within the province.
“In Alberta, used car prices in July were up by 4.2 per cent on a year over year basis, and the average price is $41,126,” said Akyurek.
“What we usually see is that Alberta, specifically, you guys, tend to be more interested in larger vehicles, right? SUVs and pickup trucks and all that stuff. So, if compared to Quebec and Ontario, average prices tend to be a bit on the higher side.”
Halfway through the year, AutoTrader’s price index reports show strong sales in the used market, leading to price increases. The industry described the action as the “pull-forward” effect, which is when consumers are spurred to buy something in a short period of time, leading to a slowdown in activity later. In this year’s case, tariff concerns that began early this year prompted Canadians to buy-in early to avoid potential inventory shortages like those during the COVID-19 pandemic.
“Because of tariffs, with the anticipation that the new car prices would go up, consumers accelerated their purchases, both for new and used and especially for used we’ve been seeing a change in trends in prices starting in March,” said Akyurek.
“Usually, prices go down throughout the year, but since March, we are seeing a bit of an uptick in used car prices.”
New car prices in Alberta are down 1.6 per cent year over year, coming in at $68,162 – higher than the national average of $64,445. Meanwhile, used prices continue to climb.
When the tariff threats first cropped up, Akyurek said AutoTrader conducted a survey to understand how they might affect consumer behaviour. So, in early February, on its website, AutoTrader asked users whether their decision to buy a car would be impacted if the tariffs went through.
“Forty-seven per cent of the consumers that we reached said, ‘Yep, it would’. And within that 47 per cent, 31 per cent of the consumers stated that instead of buying a new (car), I would buy a used car,” said Akyurek.
He explained that after consumers watched the tightening of the market during COVID, many sought to get out ahead of the market pinch for any future supply disruptions. When Trump started threatening tariffs against Canada, Canadians started jumping into their cars. Akyurek said prices normally start high in the year and then come down, but the heightened market activity spurred by the tariff worries had the opposite effect.
“As of end of July, the average price of a used car in Canada is $37,628, which is a 4.3 per cent increase on a year over year basis. So yeah, the trends reversed. Now we’re above last year’s levels again,” said Akyurek.
The growth in prices on the used market is expected to continue, according to Akyurek, and it’s due in part to a leftover shortage that cropped up during the pandemic. He explained that from 2020 to 2023, an estimated 1.5 million less cars were sold because of inventory shortages related to supply chain issues.
Years later, that shortage is now hitting the used market supply, and causing a squeeze on the used car inventory, which pushes prices up.
“We don’t expect this constraint to go away until 2027,” said Akyurek.
While it’s tough to remember now, back in 2019 the average price of a used car was $25,930, but with the heightened demand and pinched supply, Akyurek said those prices aren’t coming back any time soon.
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2025-08-30T23:46:21Z