The average price of new vehicles is falling again, according to a research firm
The automotive sector has been hit hard by inflation in recent years, but the trend appears to have slowed down for now, according to new data released by DesRosiers Automotive Consultants (DAC).
After surging by 31% between 2019 and 2024, the average transaction price for new vehicles in Canada fell by 0.6% in 2025—despite the imposition of retaliatory tariffs resulting from the trade war with the United States—to settle at $53,400.
Curiously, this figure is far from the $62,830 (-2.7%) projected by AutoHebdo in its first-quarter 2026 report.
DAC notes that pickup trucks and SUVs, which account for about 88% of the market, saw their average transaction price drop by 0.6% last year. For passenger cars, the decline was 1.4%.
According to its calculations, sales fell by 1.7% in Quebec, largely due to the lower number of electric vehicles sold in 2025, and by 0.8% in Ontario.
“The decline in transaction prices can be partly attributed to consumers’ disinterest in electric vehicles in 2025,” confirms Andrew King, managing partner at DAC, who also notes the return to more normal inventory levels at dealerships.
There are, however, other reasons, such as the disproportionate impact of Canadian counter-tariffs on luxury vehicles. Tesla is a perfect example, with its sales plummeting dramatically in 2025. At BMW, production of several SUVs manufactured in the United States was temporarily halted, and their sales declined.
In addition, DAC notes that full-size pickup trucks have lost market share to midsize models, while compact and midsize SUVs have lost market share to subcompact SUVs. These trends have helped offset rising prices for trucks and SUVs.
“The market outlook for 2026 is complex,” adds Andrew King. “We’re seeing a partial recovery in electric vehicle sales, but ongoing trade disputes and rising gas prices are also affecting the mix of sales.”
