The Canadian used-car market could soon see a price correction, as vehicle supply appears to be growing faster than consumer demand, according to the fall version of the Carfax Canada Used Vehicle Market Insights report released last week.

There were 258,202 used-car transactions in August, Carfax Canada said, citing Mobility Global. That’s down 6.9% month-over-month and off 6.6% from August 2025.

Used-car inventory, though, climbed 18.9% month-over-month to 228,788 units.

Though this is down 4.6% from 2025 and is also below pre-COVID levels, this is the highest inventory level of 2026, Carfax Canada said.

Still, there has been “minimal impact” to vehicle prices, with average used-car listing prices at $30,776, down 0.3% month-over-month and down 2.7% year-over-year.

“The market has continued to take on more supply this year without meaningful (month-over-month) price movement,” Carfax Canada said in the report.

However, that could be short lived, as the company later notes: “The combination of inventory expanding and transaction activity cooling suggests supply growth is starting to outpace demand, increasing the likelihood of a market pricing turning point this fall.”

The report adds: “With inventory reaching its highest level of 2026 and transaction activity slowing, a key question heading into year-end is whether this imbalance between supply and demand will lead to more significant pricing declines.

“Broader economic factors, including ongoing affordability pressures, the possibility of a Bank of Canada rate hike, and potential tariff-related impacts may also influence consumer purchasing decisions and vehicle pricing in the months ahead.”

Despite the increase in supply, finding the right inventory isn’t necessarily cut-and-dry for dealers, and demand tends to vary based on segment, fuel type and price, Carfax Canada said.

“Sourcing the right inventory remains one of the biggest challenges facing dealers today. In a market where consumer demand continues to evolve, every inventory decision carries greater weight,” Carfax Canada president Shawn Vording said in a news release.

“While no one can predict exactly what the market will do next, dealers can make smarter, more confident decisions by leveraging trusted data and market insights. Success increasingly depends on aligning inventory strategies with that real-time data. It helps dealers reduce risk, improve inventory performance and better serve their customers.”