January 2026 Used Car Market Report
January 2026 Used Car Market Report: New Inventory Surge Reshapes Canadian Market
Canada's automotive market kicks off 2026 with a transformational shift in inventory composition. Our analysis of 206,396 active listings reveals a market fundamentally reshaped by manufacturer inventory strategies—a record 42.8% of listings are now new vehicles (under 500 km), dramatically altering pricing dynamics and buyer opportunities. Average prices have stabilized at $45,942, down slightly from December's $46,104.
This unprecedented new vehicle influx signals manufacturers' aggressive push to move 2026 model year inventory, creating what may be the most buyer-friendly market conditions in years—particularly for those seeking new vehicles at competitive prices.
Executive Summary
Key January 2026 Findings:
- Total Active Listings: 206,396 (up 33.9% from December's 154,284)
- National Average Price: $45,942 (down 0.4% from December's $46,104)
- Median Price: $39,688 (down 0.3% from December's $39,794)
- Average Odometer: 51,344 km (up 12.5% from December's 45,663 km)
- New Vehicle Share: 42.8% of market (88,363 listings under 500 km)
- Market Leaders: Ford (24,493 listings), Volkswagen (15,683), Hyundai (15,223)
January vs December
$45,942
Avg Price
$45,942
Median
$39,688
Listings
206,396
Avg Mileage
51,344 km
January's most significant development isn't the modest price decrease—it's the fundamental restructuring of available inventory. The 33.9% increase in total listings, combined with a 42.8% new vehicle share, represents a market where manufacturers are actively competing for buyer attention through inventory availability rather than aggressive discounting.
Key metrics showing inventory surge and price stabilization
Total Listings
206,396
New Vehicles
88,363
Avg Price
$45,942
Price Drops
48,325
New vs Used: A Market in Transition
The most striking feature of January 2026's market is the composition shift between new and used inventory:
January 2026 market composition—42.8% new vehicle share
$35,379
avg price
$60,062
avg price
Key Insights:
- New vehicles (88,363 listings) average $60,062 with essentially zero kilometres
- Used vehicles (118,203 listings) average $35,379 with 89,670 km average odometer
- The $24,683 price gap between new and used represents the average depreciation buyers can avoid—or benefit from
This near-parity between new and used inventory is historically unusual. For buyers, it means exceptional selection at both ends of the market: brand-new 2026 models for those prioritizing warranty coverage and latest features, or significant savings on gently-used vehicles for value-conscious shoppers.
National Market Overview
Monthly Pricing Context
January continues the market stabilization that began in late 2025:
| Month | Average Price | Median Price | MoM Change | Listings |
|---|---|---|---|---|
| October 2025 | $45,493 | $38,994 | - | - |
| November 2025 | $42,553 | $36,695 | -6.5% | 154,786 |
| December 2025 | $46,104 | $39,794 | +8.3% | 154,284 |
| January 2026 | $45,942 | $39,688 | -0.4% | 206,396 |
Analysis: The dramatic inventory increase (+33.9%) without corresponding price decline suggests genuine demand absorption. Manufacturers are finding buyers for 2026 inventory without resorting to aggressive incentives—yet. Watch for potential pricing pressure as Q1 progresses if sales velocity doesn't match inventory growth.
For previous market context, see our December 2025 Used Car Market Report and November 2025 Used Car Market Report.
Market Composition
By Body Style
Market breakdown by vehicle type
January Body Style Trends:
- SUV dominance strengthens to 55.1% market share (up from 53.9% in December) with $45,432 average
- Pickup trucks maintain 13.5% share at $62,032 average—truck pricing remains resilient
- Sedans at 12.2% share with $32,137 average—continue to offer best value-per-dollar
- Coupes ($67,299) and Convertibles ($73,122) command premiums as enthusiast vehicles
By Fuel Type
January 2026 powertrain distribution
Total
206,647
Hybrid/EV
16.1%
Avg Gas Price
$42k
Fuel Type Analysis:
- Gasoline maintains 72.8% dominance at $42,274 average—traditional powertrains remain king
- Hybrid reaches 11.5% share (up from 7.8% in December) with $57,419 average—electrification accelerating
- Electric at 4.6% share with $55,123 average—EV inventory expanding significantly
- Diesel commands highest average at $80,713—commercial and heavy-duty truck premium
The hybrid segment's growth from 7.8% to 11.5% market share represents one of the month's most significant trends, driven by strong inventory from Honda, Toyota, Hyundai, and Ford.
Provincial Market Breakdown
Regional Pricing Analysis
| Province | Listings | Avg Price | Avg Odometer | Market Share |
|---|---|---|---|---|
| Ontario | 69,779 | $43,282 | 55,656 km | 33.8% |
| Quebec | 63,870 | $46,883 | 50,005 km | 30.9% |
| British Columbia | 27,075 | $49,566 | 46,391 km | 13.1% |
| Alberta | 17,767 | $48,799 | 55,454 km | 8.6% |
| Saskatchewan | 7,760 | $47,032 | 58,248 km | 3.8% |
| Nova Scotia | 6,638 | $41,013 | 51,054 km | 3.2% |
| New Brunswick | 6,366 | $45,697 | 38,158 km | 3.1% |
| Manitoba | 3,475 | $48,644 | 40,005 km | 1.7% |
| Newfoundland | 2,411 | $42,897 | 21,876 km | 1.2% |
| PEI | 685 | $50,513 | 19,713 km | 0.3% |
Average pricing by province compared to national average
Regional Insights
Ontario leads with 33.8% market share and the lowest major-market average at $43,282—6% below national average. The province's massive inventory (69,779 listings) offers exceptional selection. Browse inventory in Toronto, Mississauga, or London.
Quebec has emerged as a pricing anomaly—with $46,883 average, the province now prices above the national average despite traditionally offering value. This shift may reflect inventory composition changes or regional demand dynamics.
British Columbia maintains premium pricing at $49,566 (8% above national average) with relatively low odometer readings (46,391 km), indicating fresher inventory.
Atlantic Canada offers mixed value: Nova Scotia at $41,013 (11% below average) presents the best regional value, while PEI's limited inventory (685 listings) commands premium pricing at $50,513.
Newfoundland continues its pattern of low-mileage premium inventory: $42,897 average with just 21,876 km average odometer—geographic isolation supports pricing power for fresh units.
Top Markets by City
Leading Canadian cities by listing volume
City Highlights:
- Calgary leads nationally with 8,048 listings at $49,511 average
- Toronto offers best major-city value at $34,768 average (24% below national)
- Vancouver commands highest city-level pricing at $61,755 average
- Regina provides prairie value at $43,154 with 2,974 listings
Top 20 Models by Inventory Volume
| Rank | Make | Model | Listings | Avg Price | Avg Odometer |
|---|---|---|---|---|---|
| 1 | Ford | F-150 | 5,513 | $60,681 | 55,019 km |
| 2 | Volkswagen | Tiguan | 4,510 | $37,525 | 34,525 km |
| 3 | Volkswagen | Taos | 4,013 | $36,945 | 287,978 km |
| 4 | Nissan | Rogue | 3,543 | $30,260 | 45,278 km |
| 5 | Mazda | CX-5 | 3,368 | $35,330 | 32,638 km |
| 6 | Ford | Escape | 3,361 | $29,723 | 55,469 km |
| 7 | Hyundai | Tucson | 3,345 | $34,565 | 34,473 km |
| 8 | Honda | CR-V | 2,836 | $33,677 | 65,979 km |
| 9 | GMC | Sierra 1500 | 2,618 | $66,218 | 45,386 km |
| 10 | RAM | 1500 | 2,583 | $61,593 | 42,199 km |
| 11 | Chevrolet | Silverado 1500 | 2,483 | $60,238 | 48,199 km |
| 12 | Ford | Bronco Sport | 2,423 | $40,752 | 17,433 km |
| 13 | Nissan | Kicks | 2,403 | $27,257 | 23,066 km |
| 14 | Kia | Sportage | 2,224 | $34,507 | 35,914 km |
| 15 | Hyundai | Elantra | 2,224 | $22,779 | 51,440 km |
| 16 | Honda | Civic | 2,164 | $24,924 | 70,072 km |
| 17 | Volkswagen | Jetta | 2,105 | $27,759 | 31,565 km |
| 18 | Honda | CR-V Hybrid | 2,090 | $49,800 | 7,651 km |
| 19 | Mazda | CX-30 | 2,042 | $34,067 | 12,242 km |
| 20 | Jeep | Compass | 1,879 | $35,033 | 30,145 km |
January 2026 market share leaders
Model Analysis
Ford F-150 maintains its position as Canada's most-listed vehicle with 5,513 units averaging $60,681. The truck's dominance reflects both consumer preference and Ford's aggressive inventory push.
Volkswagen's Double Presence: Both Tiguan (4,510 listings) and Taos (4,013 listings) rank in the top 3, signalling VW's strong dealer inventory position. Combined 8,523 VW compact SUVs offer significant buyer negotiating leverage.
Compact SUV Battlefield: The $30,000-$40,000 range remains fiercely competitive with Nissan Rogue ($30,260), Ford Escape ($29,723), Hyundai Tucson ($34,565), Honda CR-V ($33,677), Mazda CX-5 ($35,330), and Kia Sportage ($34,507) all vying for buyers.
Fresh Inventory Indicators: Models with sub-20,000 km average odometers include Ford Bronco Sport (17,433 km), Mazda CX-30 (12,242 km), and Honda CR-V Hybrid (7,651 km)—evidence of 2025-2026 model year dominance.
Electrified Vehicle Markets
Electric Vehicles
EV inventory leaders and average pricing
EV Market Highlights:
- Chevrolet Equinox EV leads with 1,153 listings at $53,749—GM's mainstream EV push succeeding
- Ford Mustang Mach-E holds strong (1,076 listings, $50,918)—sub-$51k average makes it increasingly accessible
- Tesla Model 3 offers exceptional value at $27,328 average, though 99,355 km average odometer reflects higher-mileage used inventory
- Kia EV9 commands $72,924 premium for three-row electric SUV capability
- Total EV share reaches 4.6% of market—up significantly from December's 3.0%
Hybrid Vehicles
Hybrid inventory leaders by volume
Hybrid Market Highlights:
- Honda CR-V Hybrid dominates with 2,064 listings at $49,790—remarkably fresh with 7,748 km average
- Hyundai Tucson Hybrid impresses with 960 listings at $48,815 and just 4,182 km average odometer
- Ford Maverick hybrid (592 listings, $45,240) remains in high demand with only 4,954 km average
- Volvo maintains luxury hybrid presence across XC60, XC40, and XC90 platforms
- Hybrid market share reached 11.5%—a significant jump from previous months
Price Distribution Analysis
Inventory breakdown by price segment
Price Segment Analysis:
- Under $35,000: 41.8% of market—value segment remains well-stocked
- $35k-$50k: 25.0% represents the mass-market sweet spot for new compact SUVs
- $50k-$75k: 20.5% captures trucks, larger SUVs, and premium compact vehicles
- $100k+: 4.7% premium/luxury segment holding steady
Model Year Distribution
Inventory breakdown by vehicle model year
Model Year Insights:
- 2026 models lead with 66,206 listings (32.1% of market) averaging $61,791
- 2025 models show remarkable freshness at 4,571 km average odometer
- Sweet spot for value: 2022-2023 models offer sub-$40k pricing with reasonable mileage
- Depreciation curve: 2019-2020 models average $28-30k with 95,000-105,000 km—excellent value for budget-conscious buyers
Luxury Market Analysis
Premium brand inventory and pricing analysis
Avg Luxury Price
$70,444
Luxury Market Highlights:
- Mercedes-Benz dominates luxury segment with 14,062 listings—nearly double second-place BMW
- Audi offers best luxury value at $37,394 average, though higher mileage (85,155 km) reflects depreciation benefits
- Porsche commands highest average at $94,802—enthusiast market remains strong
- Genesis presents compelling value at $48,808 with Korean luxury quality
Price Drops & Value Opportunities
Vehicles seeing significant price cuts in January 2026
4,599 listings across these models have seen price reductions, averaging $20,143 off.
48,325 listings have seen price reductions this month, averaging $4,073 off (3.8% reduction). Key opportunities:
- Ford Mustang Mach-E: 9.0% average reduction—EV pricing continues normalizing
- Dodge Hornet: 7.4% cuts reflect inventory pressure on newer model
- Nissan models (Kicks, Rogue, Sentra) showing consistent 5-7% reductions
Best Value Vehicles Under $30,000
High-volume models offering exceptional value
Top Value Picks:
- Honda Civic at $19,685 average offers legendary reliability with 1,426 listings available
- Ford Escape at $19,848 provides SUV utility at sedan pricing
- Hyundai Elantra at $20,621 with moderate 62,351 km leads value sedans
- Nissan Kicks at $21,674 with low 44,228 km odometer—freshest value SUV option
Featured Inventory
Top Compact SUVs Available Now
Electric Vehicles Under $60,000
Best Value Sedans
Market Outlook
February 2026 Expectations
Tax Season Demand: February through April typically brings increased buyer activity as tax refunds arrive. Expect modest price firming in the under-$25,000 segment as budget-conscious buyers enter the market.
Inventory Pressure Point: With 206,396 active listings—the highest in our tracking history—dealers face inventory carrying costs. Watch for increased incentives if sales velocity doesn't accelerate.
EV Market Evolution: Electric vehicle share jumping from 3.0% to 4.6% signals accelerating adoption. Expect continued EV price normalization as inventory depth increases.
Hybrid Momentum: The 11.5% hybrid market share represents a structural shift. Honda CR-V Hybrid and Hyundai Tucson Hybrid lead what's becoming a mainstream segment.
Strategic Recommendations
For Buyers:
- New vehicle opportunity: With 42.8% of inventory being new, negotiate aggressively—dealers have carrying costs
- Hybrid consideration: CR-V Hybrid at $49,790 with 7,651 km offers near-new condition with hybrid efficiency
- Value play: Ontario offers 6% below-average pricing with maximum selection
- EV timing: Tesla Model 3 at $27,328 represents exceptional electric value if mileage suits your needs
- Budget strategy: Ford Escape and Honda Civic under $20,000 offer reliable transportation
For Sellers:
- Pricing reality: With inventory at record levels, competitive pricing essential
- Hybrid premium: Hybrid vehicles command strong pricing—position appropriately
- Timing consideration: List before tax season demand (February-April) for optimal exposure
How Cardog Provides Market Intelligence
January 2026's market complexity—record inventory, shifting new/used composition, regional pricing variations—demands sophisticated analysis. While understanding that Honda CR-V Hybrid averages $49,790 with 7,651 km differs fundamentally from a CR-V at $33,677 with 65,979 km requires market context that manual research simply cannot provide.
Cardog's AI analyzes over 206,000 active listings to surface insights automatically: when listings price below market, when inventory shifts create opportunities, and when regional arbitrage makes sense. The platform tracks granular movements across every segment—from Tesla Model 3's value proposition at $27,328 to Mercedes-Benz's luxury positioning at $80,905.
Whether you're comparing CarGurus vs AutoTrader vs Clutch or searching specific models like the Ford F-150, Honda CR-V, or Hyundai Tucson, Cardog provides comprehensive market intelligence. Explore live market data to see real-time pricing across all segments.