Will used car prices drop in Canada?

Probably not by much in 2026. Used car prices in Canada may soften slightly in some segments, but the overall market is expected to stay elevated rather than see a broad drop.

If you’re buying, expect a mixed market: newer used vehicles and high-demand models may remain expensive, while some individual vehicles, older cars, or less-popular trims may become better deals. A small monthly dip is possible, but that does not necessarily mean a major correction is coming.

Practical move: shop by exact model, age, mileage, and region rather than waiting for a Canada-wide price crash. If you find a well-priced car with clean history and a proper inspection, it may be better than waiting indefinitely.