Used Electric Vehicles Sales Reach New Record with Bigger Surge Ahead
April 7, 2026
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Key Takeaways
Used EV sales in Canada surged to a record high in Q1 2024, with nearly 37,000 EVs sold through Manheim's wholesale auctions and over 100,000 sold at retail
Year-over-year growth reached 12%, driven by rising fuel prices, increased off-lease supply, and provincial incentives like Ontario’s $4,000 iZEV rebate, BC’s $3,500 rebate, and Quebec’s RÉVE program
Economic factors such as lower operating costs and reduced fuel expenses are the primary motivators for Canadian buyers choosing used EVs over new models
Used EV Sales Surge in Canada: What Drivers Need to Know
Used electric vehicle (EV) sales are gaining significant traction across Canada, mirroring a robust trend seen in the United States. Recent data from Cox Automotive highlights a remarkable performance in the first quarter, with used EVs showing strong sales figures that are worth noting for Canadian consumers.
Record Sales at Wholesale Market
In the first quarter of 2024, used EVs achieved record sales at Manheim, the largest wholesale auto marketplace in North America. Nearly 37,000 EVs were sold through Manheim’s auction lanes, marking a historic high. This surge aligns with broader retail demand estimates by Cox Automotive, which suggest that over 100,000 used EVs were sold at retail during the same period. This makes Q1 2024 the second-strongest quarter on record for used EV sales, only surpassed by Q3 2025 when consumers rushed to secure government-backed incentives before they expired.
Year-over-Year Growth
On the wholesale front, used EV sales in Canada have seen impressive growth. Year-over-year sales increased by 12%, and there was a notable 17% rise compared to Q4 2025. Despite this increase, prices remained stable through March, experiencing a typical spring market uplift.
Factors Driving Demand
Several factors are contributing to the rise in used EV sales in Canada:
1. **Fluctuating Fuel Prices**: As gasoline prices climb, more consumers and dealers are turning to used EVs, which generally offer a lower purchase price than new models. This cost-effectiveness is particularly appealing in regions where fuel costs can be high.
2. **Increasing Supply**: The market is seeing a growing supply of used EVs, largely due to a wave of off-lease vehicles hitting the market. Many of these vehicles were originally leased during periods of substantial federal incentives, such as the $7,500 tax credit in the United States. In Canada, similar provincial incentives and rebates are also driving adoption and subsequent supply.
3. **Provincial Incentives**: Canadian drivers can take advantage of various provincial rebates and incentives that make purchasing a used EV more affordable. For example, Ontario offers up to $4,000 through its iZEV program, British Columbia provides up to $3,500, and Quebec offers substantial rebates through its RÉVE program. These incentives significantly lower the upfront cost and improve the total cost of ownership (TCO) for buyers.
Off-Lease Vehicles and Market Adjustments
Experian projects that by the end of 2026, EVs will constitute 15% of all off-lease vehicles, up from 7.7% in Q1 2024. Not all lessees choose to purchase their vehicles at the end of the lease period; many opt to walk away when the residual value exceeds the market value, further increasing the supply of used EVs in the market. Lenders have adapted to these pricing discrepancies, helping the market manage the growing supply without significant disruptions.
Canadian Availability and Pricing
For Canadian consumers, this trend means more opportunities to purchase quality used EVs at competitive prices. With provincial incentives like Ontario’s iZEV program, British Columbia’s EV rebates, and Quebec’s RÉVE program, the financial barrier to entry is lower than ever. These rebates, combined with decreasing battery costs and improving charging infrastructure, make used EVs an increasingly attractive option.
Economic Motivation Over Other Factors
Interestingly, while new EV sales have shown signs of softening in North America, used EV sales continue to thrive. This suggests that many buyers are motivated primarily by economic factors—such as lower operating costs and reduced fuel expenses—rather than environmental concerns or performance attributes. As more Canadian drivers recognise the long-term savings associated with EVs, we can expect this trend to continue.
Looking Ahead
If the current trend persists, we can anticipate even more activity in the used EV market in the coming months. The ongoing influx of off-lease vehicles will ensure a steady supply, while stable pricing and attractive provincial incentives will continue to drive demand.
Conclusion
Used EV sales are on a strong upward trajectory in Canada, fuelled by rising fuel prices, increasing supply, and attractive provincial incentives. For consumers looking to reduce their transportation costs and make a sustainable choice, the used EV market offers an appealing and economically sensible option. As the market evolves, staying informed about available rebates and incentives will be key to maximising savings and making the most of this growing trend.
