Rising gas prices are influencing how Canadians shop for vehicles, with more buyers turning to used electric and hybrid options as fuel costs climb.
BNN Bloomberg spoke with Dan Park, CEO of Clutch, who said increased supply from off-lease EVs and shifting consumer priorities are driving price declines and changing demand patterns.
Key Takeaways
- Used EV prices have dropped by roughly $2,000 in recent months as off-lease supply from 2022 and 2023 models increases.
- Searches for EVs nearly doubled, rising 94 per cent as higher gas prices push consumers toward lower-cost driving options.
- New vehicle sales fell about eight per cent, signalling a shift by buyers toward more affordable used vehicles.
- Hybrid demand is rising alongside EV interest, while traditional gas vehicle demand remains relatively flat.
- Tesla’s share of the used EV market has dropped below 10 per cent as more automakers gain traction with competing models.
Read the full transcript below:
ROGER: Canadian consumers are feeling the squeeze of volatile gas prices over these past few weeks, leaving some looking for used cars and thinking about making the switch to an EV. That’s according to a new report from online used car retailer Clutch. For more on trends in Canada’s used car market, Dan Park, CEO of Clutch, joins us now in studio. Dan, thanks very much for coming in.
DAN: Thanks for having me on the show.
ROGER: Let’s talk about EV prices. I’m fascinated by this. With all the prices soaring, this is the first one I want to touch on.
DAN: They’re actually dropping. Yeah, so EV prices over the last couple of months — at least used vehicles — have dropped about $2,000 over the past couple of months, and that’s really primarily driven by supply. So over the last couple of years, the increase in production has led to more supply, and right now a lot of 2022, 2023 off-lease vehicles are coming into the market, and so that’s resulting in more supply, which is great — again, creating better pricing for consumers.
ROGER: So people have the choice on cars, which is always a nice thing when you’re the buyer, not so good when you’re the seller. And is that stigma still there for you — used EVs, that we can’t trust them, they’re not going to last?
DAN: There’s certainly a little bit of that, yeah. There’s range anxiety. There’s still some concerns about the technology. Infrastructure is not totally there, and so there are consumers that still are hesitant to buy EVs. But the reality is, today, the price of a used Model 3, on average — a great Model 3 — is $28,500, which is pretty reasonable for a high-quality used vehicle.
ROGER: And what year? How old would that be?
DAN: Three to five years.
ROGER: Three to five years, right. Yeah. So there is depreciation too. I mean, it’s that classic depreciation off the top, yep. So there are some deals — you have to look at it relatively speaking — there are some deals if you’re looking for EVs.
DAN: Absolutely. Yeah, the price of cars generally has gone up, but over the last couple of months, EVs, contrary to what you might think given gas prices, have actually come down.
ROGER: And what about the hybrids?
DAN: Hybrids — similar pattern given the conflict in Iran right now. Obviously, gas prices have increased 40 to 50 per cent, and as a result, demand has ticked up, and demand is also pushing prices in the opposite direction. But again, prices generally have come down, but that’s followed suit. Again, used car prices generally are sitting around $33,000, but hybrids are following suit in terms of pricing.
ROGER: I couldn’t get — yeah, $33,000 for an average?
DAN: That’s right.
ROGER: How old is that? A three-year-old?
DAN: Three to five — these are all used cars, less than 200,000 kilometres, and under five years.
ROGER: Under five years. And how is that price compared to what it was last year?
DAN: That ticked up about 3.45 per cent month over month. It’s about up 0.5 per cent, and so used car prices generally have ticked up. But again, in that EV segment, you’re finding much more forward pricing given that supply.
ROGER: And what’s that telling you — those used cars going up? Is that people hesitating about going for new cars?
DAN: That same period, actually, new car sales have come down. So they’ve come down about eight per cent, and so new car sales are down over the last couple of months. And so people are rotating out of new cars into used cars again, because they are more affordable, and financially it’s a more responsible choice to make.
ROGER: Well, yeah. I mean, a new car now is, on average, what — $60,000 in Canada? Yeah, something along those lines. So yeah, if you’re looking at that price now — with EVs, are you expecting a surge? Are people going to start turning to them?
DAN: Yeah. I mean, given the news today, who knows?
ROGER: All twisted.
DAN: Exactly. Oil prices are down about 12 per cent today. So, you know, I think the trend will continue. EVs, given the rebate — particularly on new EVs — should fuel increased demand in Canada. Certainly, the technology will continue to improve. Infrastructure will also continue to get built. And so I think EVs will just continue to gain in popularity. But like any technology adoption, it’s relatively slow. And so over time, I do anticipate more EV adoption.
ROGER: And you notice, I mean, with oil prices, when they fluctuate, do hybrids go up and down in demand?
DAN: Yeah. I mean, on our site, we saw, since the end of January to end of March, searches for EVs up 94 per cent, so almost two times. And so there’s a direct correlation with oil prices or gas prices — people looking for more affordable options. And the difference between a sedan, an SUV and a pickup truck — each of those different categories can be about $1,000 to $2,000 in gas costs for a year, and so that adds up over time. Over a couple of years of ownership, that’s $6,000 or $7,000 — that’s a real difference that really sways consumers’ choices around a vehicle purchase.
ROGER: And what about — I’m going to use the term ICE, internal combustion engines — is demand still solid?
DAN: It’s up, but more flat. I mean, what you’ve seen is flat demand for ICE vehicles, and then surging demand, particularly in the last three months, for EVs and hybrids.
ROGER: And within gas vehicles — smaller cars, is that what?
DAN: Yeah, smaller cars, yes — sedans, smaller SUVs. You’ve seen a slowing of pickup trucks. Again, pickup trucks are still up in terms of volume, but much lower than the overall market. So pickup trucks are up about eight per cent year over year. The overall market’s up 20 per cent.
ROGER: Pickup trucks — they hold their value, don’t they?
DAN: They do, and it’s because, for most folks, pickup trucks are a utility vehicle. If you need a pickup truck, you can’t really swap that out for a sedan. But a lot of consumers are making the choice between a sedan and SUV, for example. And again, that’s where gas prices do come into play.
ROGER: And is that fairly uniform across the country?
DAN: You’re seeing different adoption across different provinces. For example, B.C. — a big adopter of EVs, less so than Alberta. So you see regional differences.
ROGER: But you run out of Alberta with an EV —
DAN: That’s right, yeah. And so, yeah, you see definitely regional differences across the provinces. EV adoption, again, in Ontario is quite strong. B.C. is the strongest.
ROGER: And going east — what about Quebec?
DAN: Quebec actually has very strong EV adoption, I think much higher than Ontario, and then out east, less so than the middle of the country.
ROGER: And is that a bit of urban practicality — more charging options?
DAN: Yeah. And just availability of inventory as well. So infrastructure, availability, inventory and general consumer demand are fueling the supply.
ROGER: And just going back to overall prices — any idea which way they’re heading?
DAN: Hard to predict. I mean, we anticipate them staying relatively flat. There’s healthy supply in the market, but demand — again, demand is the big question, depending on macroeconomic conditions. The strength of the consumer will really dictate demand. But overall, we see market prices for cars stabilizing. Everything that happened during the pandemic — production issues, shortages — those are largely behind us today, and so we feel pretty confident about stable prices in the near future.
ROGER: I just want to get one more question about EVs. Is Tesla dominating the used EV market?
DAN: Yeah, they were. They have much less market share than they used to. They used to be 50 to 60 per cent of the market four or five years ago. They’re down to less than 10 now. And so you’ve seen popularity in models like the Hyundai Ioniq, the Nissan Leaf and the Chevy Bolt, and even the Mustang Mach-E. All these other manufacturers are creating EV alternatives that are gaining significant traction. So Tesla is losing share on our platform, though Teslas are still the most popular vehicle. Model 3 is the most popular, and then the Model Y is next.
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This BNN Bloomberg summary and transcript of the April 17, 2026 interview with Dan Park are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
