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[Canadian Used Car Prices Stall at High Level of CAD 34,000; Electrification Squeezes Out Traditional Models; Cooling Inflation Faces New Uncertainties] ⑴ As of March 2026, the national average price of used cars in Canada is approximately CAD 34,139 (for models manufactured after 2016 with low mileage), up 0.5% month-over-month and 3.25% year-over-year. Since September 2025, it has been stabilizing within a narrow range of approximately CAD 600. Platforms such as AutoTrader show average prices ranging from approximately CAD 33,200 to CAD 36,713, with some quarterly data showing a slight year-over-year decrease of 0.3%. The overall market is far above pre-pandemic levels, and price stickiness is exceeding expectations. ⑵ Significant differentiation exists among vehicle types. Pure electric vehicles face the greatest price pressure, with a record drop of CAD 1,765 in March 2026 alone. More than half of EV models are now below CAD 35,000, with popular models like the Tesla Model 3 becoming even more affordable. Hybrid models maintain stable prices due to strong demand and tight supply. SUVs and sports utility vehicles account for approximately 52% to 61% of listings, while sedans have shrunk to about 27%. The combined market share of EVs and hybrids has risen to about 11% to 12%, with EV searches surging 96% driven by rising oil prices. ⑶ From an inflation transmission perspective, used car prices have a significant weight in the transportation component of the Canadian CPI basket. The current average price is still up 3.25% year-on-year, meaning that the used car component continues to contribute positively to overall inflation, rather than the rapid decline previously expected by the market. The sharp drop in EV prices is structurally lowering the average price of used cars, but the resilience of SUVs and hybrid models is offsetting this. Listings have only increased by 3.1% year-on-year, inventory improvement is slow, and supply-side constraints have not yet been substantially alleviated. If supply recovery in the second half of the year is less than expected, the decline in used car prices may be limited, which will constrain the Bank of Canada's room for interest rate cuts, as transportation costs remain the second largest source of stickiness after service inflation. The mid-to-low price range of CAD 10,000 to CAD 15,000 remains the main driver of sales, but the supply of vehicles priced below CAD 20,000 continues to be tight, which puts particular pressure on the cost of living for low-income groups.