Affordability takes the wheel in Canadians' 2025 vehicle choices

AutoTrader's 2025 Top Vehicles data reveals Canadians favouring practical, value-driven vehicles over luxury nameplates

TORONTO, Dec. 8, 2025 /CNW/ - New data released today by AutoTrader, Canada's largest and most trusted automotive marketplace, shows Canadians are prioritizing affordability over luxury, a shift likely influenced by the current economic climate. AutoTrader's Top Searched and Top Sold lists reveal a key trend that has carried through 2025: practical and utilitarian vehicles remain at the forefront of shopper demand, with many consumers gravitating toward options that offer everyday value rather than luxury nameplates.

Rising interest rates, ongoing price fluctuations, supply chain challenges, and the introduction of new global tariffs have added pressure and uncertainty to the automotive market. These factors have likely contributed to the decline of luxury models on the top lists, with luxury searches across the marketplace down 11 per cent year-over-year.

Canadians' perennial favourites remain grounded in practicality, with the Ford F-150, Toyota RAV4, and Honda Civic topping the Most Searched Vehicles list. The Top Sold Vehicles list tells a similar story, led by the Ford F-150, Toyota RAV4, and Honda CR-V.

Performance and prestige vehicles like the Ford Mustang, Chevrolet Corvette, and Porsche 911 continue to generate high search activity, but that interest has not translated into sales. Luxury vehicles remain absent from the Top Sold list, as non-luxury brands and practical segments such as SUVs and trucks dominate Canadians' real world buying decisions.

Aside from minor shifts, both lists are largely unchanged from 2024, underscoring how affordability and practicality continue to guide Canadians' vehicle choices.

"Drawing on the millions of searches and listings that move through the marketplace each year, we capture the trends defining Canadian vehicle shopping," says Thomas Krauße, Chief Marketing Officer at AutoTrader. "After a year of significant change in the Canadian automotive market, it's no surprise that this year's data highlights affordability as a key driver of Canadians' vehicle choices. Even as shoppers browse aspirationally, what ultimately ends up in their driveways tends to be far more grounded."

Automotive Trends Outlook

This year's research from AutoTrader explored how Canadians are navigating the complexities of the current economic environment. Key observations include:

Vehicle pricing reshapes consumer priorities

In 2025, Canadian car buyers navigated a market shaped by U.S. auto tariffs, reciprocal Canadian tariffs, and shifting vehicle availability, all of which affected pricing dynamics and consumer behaviour. Despite these pressures, new vehicle prices decreased slightly, down nearly three per cent year-over-year to an average of $63,665 (as of November 2025), reflecting early signs of price stabilization.

Used vehicle prices remained elevated compared to pre-pandemic levels, averaging $35,494, up over two per cent year-over-year, though signs of stabilization are emerging. Improved vehicle availability, supported by reciprocal tariffs that had previously slowed exports to the U.S., have helped ease upward price pressures and contributed to this stabilization.

Vehicle inventory shifts ease pressure on prices

Canadian buyers are seeing improved availability, helping to stabilize prices. AutoTrader marketplace data shows that new vehicle inventory is generally healthy. While overall supply is slightly down from last year, availability varies by brand due to factors such as demand, tariffs, and limited imports.

Used inventory has been gradually increasing but is expected to remain constrained until mid-to-late 2027. Recent gains stem from higher new car sales, increased trade-ins, limited exports tied to tariffs, slightly softer demand, and more young vehicles re-entering the market. These factors have helped replenish stock after years of reduced supply and fewer off-lease returns. Together, rising new and used vehicle availability is helping to ease price pressure and provide buyers with more options, reflecting a market still in transition.

Tariffs impact used vehicles first, new vehicle effects more muted

AutoTrader data shows that the impact of tariffs was more pronounced in the used market than in the new one. Early fears of sharp price increases from U.S. trade tariffs did not materialize in the new vehicle market, where strong inventory levels helped to stabilize pricing.

Conversely, the used market absorbed the impact sooner, driven by tighter supply and heightened demand, mirroring patterns seen during the COVID-era supply disruptions. As uncertainty around new vehicle costs grew, more consumers shifted to used models, contributing to price volatility.

Market dynamics also varied by automaker. Differences in inventory, demand, and pricing strategies created an uneven landscape, illustrating how brand-level shifts can quickly ripple across the broader market.

The EV slowdown and industry reset

In 2025, interest in Electric Vehicles (EVs) rose modestly. EV searches made up nine per cent of all vehicle searches on AutoTrader, up from eight per cent in 2024. Interest was strongest in British Columbia, Quebec, and Ontario, while Alberta saw the largest year-over-year gain.

Despite growing curiosity, EV adoption remained limited in Canada. Interest among non-EV owners has continued to decline for the third consecutive year, with 42 per cent saying they are open to buying an EV, down from 46 per cent in 2024, and 56 per cent in 2023.

The industry hit an inflection point over the past year as incentives declined, EV sales slowed, the ZEV mandate was paused, and automakers scaled back aggressive electrification plans in favour of more moderate options, such as hybrids, plug-in hybrids (PHEVs), and extended gas-powered lineups.

Hybrids remain the most popular EV segment, with nearly three-in-five intenders (62 per cent) saying they would consider buying one, followed by 60 per cent for PHEVs, and only 50 per cent for BEVs. Additionally, the hybrid share of searches increased seven per cent year-over-year, reflecting a desire for some EV-like benefits, without the full commitment to a battery-only model. These shifts suggest consumer curiosity about EVs remains strong, but the market is entering a more measured phase.

SUVs continue to maintain a stronghold with consumers

SUVs have continued to gain ground, accounting for 42 per cent of all searches on AutoTrader, their highest share in three years. They make up more than half of used vehicle listings (52 per cent) and over 60 per cent of new vehicle inventory on the marketplace (as of Q3 2025). Canadians have been preferring larger vehicles for some time, so this isn't a new phenomenon, but a trend that has steadily intensified.

Cars remain an important but gradually softening part of the market, representing 46 per cent of searches, down slightly from last year. Trucks continue to show strong momentum, with searches rising five per cent year-over-year, and accounting for 10 per cent of overall searches. Minivans remain a niche category with only two per cent of searches.

Technology reshaping the next era of vehicle innovation

Hands-free driver assistance systems are emerging as a realistic step toward automated driving, supported by more advanced in-car driver monitoring. Automakers are also racing to improve charging technology, infrastructure, centralized vehicle software, over-the-air updates, and AI-driven personalization, complemented by natural voice virtual assistants. Work on vehicle-to-grid and vehicle-to-home integration is also gaining momentum.

Provincial Search Breakout

Based on AutoTrader's Top Searched data, some key regional preferences emerge.

Ontario holding strong on cars while luxury interest cools - Ontario's 2025 Top Searched list continues to be driven by an urban-first mix, with cars making up 70 per cent of the province's Top 10. Luxury interest is easing, with the BMW 3 Series falling four spots this year, while performance favourites like the Chevrolet Corvette climbed the ranks.

B.C. shoppers balancing performance with efficiency - Luxury interest continues to fade in British Columbia, with only two luxury models on this year's Top Searched list. Despite strong SUV demand, cars still make up 40 per cent of the Top 10 and performance models like the Chevrolet Corvette climbed as the Ford Mustang dipped. With models like the Porsche Cayenne and Toyota Tundra entering the rankings, shoppers continue to balance aspirational picks with day-to-day capability.

Quebec leaning into efficiency, electrification, and compact versatility - Quebecers' continued preference for efficient, city-friendly vehicles prevails in 2025. Cars represented half of the Top 10 searches, and compact favourites like the Honda Civic and Toyota RAV4 are proving popular.  Interest in luxury has cooled slightly, while demand for roomier vehicles remains strong, reflected in more SUVs on the list.

Saskatchewan maintains its truck-first identity as SUVs gain ground - Saskatchewan's Top Searched list reinforces the province's long-standing preference for trucks, which make up half of the Top 10 and dominate search activity. Smaller cars have nearly disappeared from the top rankings, and the arrival of the Honda CR-V highlights a broader Prairie shift toward larger, family-friendly vehicles.

Alberta doubling down on power, utility, and performance – Albertans' enduring preference for trucks and cars continues, each making up 40 per cent of the Top 10. Trucks remain central, led by staples like the Ford F-150 and Toyota Tacoma, reflecting buyers' focus on utility, towing, and durability. Luxury interest has softened, while performance surged: the Chevrolet Corvette jumped an astounding ten spots, re-entering the Top 10 for the first time since 2021.

Manitoba embracing versatile SUVs as truck interest holds steady - Manitoba shows a balanced mix, with trucks and cars each making up nearly a third of the Top 10, while SUVs continue to reign this year. The province leads the Prairies in SUV share of the Top 10 (four SUVs), driven by strong interest in crossovers. While Manitoba's traditional truck preference remains, highlighted by the Dodge Ram 1500 entering the Top 10, shoppers are leaning toward vehicles that offer practicality, space, and all-season capability.

Maritime shoppers prioritizing value, capability, and all-weather confidence - Trucks account for 40 per cent of the Top 10, with cars and SUVs split at 30 per cent each. As new vehicle prices eased, value segments held steady, even as search behaviour shifted slightly with the Honda Civic down two spots, the Ford Mustang climbed three, and the addition of the Dodge Ram 1500 reinforced the region's reliance on capable pickups. Maritime buyers continue to seek vehicles that deliver on durability, affordability, and strong all-weather performance.

Methodology

Analysis was performed based on site analytics from AutoTrader.ca using Canadian search and sold by proxy delist data from January 1, 2024 to October 24, 2025. Year-over-year analysis was based on data from January 2024 to November 2025. AutoTrader uses delistings as a proxy for sales by analyzing the movement of inventory listings on the site. AutoTrader commissions independent third-party research to understand Canadian car shopping habits amongst both car intenders and past purchasers.

About AutoTrader

AutoTrader is the largest and most trusted automotive marketplace in Canada. Offering the largest inventory of new cars and used cars in Canada, AutoTrader boasts hundreds of thousands of new and used vehicles for sale to Canadians across the country. AutoTrader receives over 26 million monthly visits to the marketplace and the AutoTrader app has been downloaded by more than 7 million Canadians. Visitors are able to buy or sell cars, trucks or other motorized vehicles quickly, easily and confidently. Buyers can search based on vehicle model, make, colour and geographic location to find the deal that is right for them. AutoTrader is also an online destination for auto enthusiasts, featuring news, reviews, videos and podcasts from award-winning automotive journalists. Follow AutoTrader on LinkedIn, Facebook, Instagram, TikTok and YouTube.

SOURCE AutoTrader