After what is being described as tariff-buying at the beginning of 2025, sales for new passenger vehicles declined at the end of the year. This as Canada, the U.S. and Mexico are set to review its free-trade agreement.
Numbers from Statistics Canada show a 20 per cent drop in new passenger car sales nationally, with that number dipping even lower to nearly 26 per cent in Alberta in December 2025 compared to the same time the previous year.
The dip follows an uptick in purchases in the first half of 2025, helping to increase new car sales overall by two per cent in the year, according to AutoTrader.
“Because of the tariff discussions consumers accelerated their purchases so the first half was a bit front-loaded and we saw a bit of a decline in the second-half,” explained Baris Akyurek, VP, Insights and Intelligence, AutoTrader.
Despite those fears, according to AutoTrader, the average price for a new car dipped slightly at the end of the year, sitting at $63,439 nationally; that number went up to $68,651 in Alberta.
It means for dealerships like Renfrew Chrysler Dodge Jeep RAM, who sell both new and used vehicles, they’ve been noticing more people move towards buying new vehicles over used ones.
“Prices have kind of come down, things have kind of stabilized on that front. I think a lot of people do look at it at ‘Hey you can get a brand new vehicle for the same payment with a full warranty, services packages and all sorts of stuff for the same kind of ballpark payment you can get for a used car,’” said Tylor Dias, new car director at Renfrew Chrysler Dodge Jeep RAM.
One driver told CityNews he is taking advantage of that, deciding to go with a new vehicle, having no plans of buying another one any time soon.
“In at least seven years, this is three years old so depending on performance and status, in about seven years time,” said Mark, who bought a new car three years ago.
And despite the year-over-year dip seen in December, it’s still expected for now, that consumers will be looking for their next ride in 2026.
“Assuming that there are no big changes on the tariff side of things, assuming that CUSMA is in place after July 1, we believe that the market both for new and used cars will grow,” said Akyurek.