BC Business
In economic uncertainty, a new report finds 82 percent of British Columbians expect used vehicle prices to increase over the next 12 months
At this point, it’s getting hard to keep track of which U.S. tariffs apply to what sector. And when (or if) they go into effect. Not to mention trying to follow threats of reciprocal tariffs if Canada retaliates with levies of our own.
Amid all this confusion, one thing is certain: British Columbians are bracing for impact. Whether that’s on spiking grocery bills, in unexpected job losses—or on car prices.
While B.C. is not necessarily known for its auto manufacturing (hello Ontario), the 25 percent U.S. tariffs on Canadian auto exports (currently in place at the time of writing) are likely to affect the cost of both new and second-hand vehicles. And BCers are expecting prices to rise.
“Typically, when you see sentiment trend in that direction, that turns the sentiment into reality,” says Sean Mactavish, CEO of Autozen, a Vancouver-based online marketplace that helps consumers sell their vehicles to dealers. “If you expect prices are going to go up, then you’re willing to pay your trade at higher prices.”
In collaboration with the Angus Reid Institute, Autozen’s recent report surveyed British Columbians on their concerns around the economic impact of U.S. auto tariffs. The most surprising finding for Mactavish: 82 percent of those surveyed believe the price of used cars will increase over the next 12 months.
“The data, the significance of that, corroborates what we’re hearing from our consumers,” Mactavish says, adding that some Autozen consumers are already asking to sell their vehicles for higher than normal prices. “And it’s all correlated to tariffs and market uncertainty,” he says.
The report also notes that 73 percent of British Columbians are concerned about finding reasonable new car options in the current economic uncertainty, while 61 percent are concerned about finding reasonable used car options.
Mactavish says the notable number of BCers expecting prices to rise is historically unusual—with the exception of COVID-19. “I think people still have that memory of, hey, when something shocks the market, prices go up quite a bit for cars. And for most people, that’s significant,” he says.
The report aligns with broader trends in other analyses of the Canadian used vehicle market. In its most recent weekly report, the Canadian Black Book (an automotive data-tracking organization) notes a continuous fluctuation in wholesale used vehicle rates that could be attributed to factors like ongoing political changes and a gradual shift in floor prices. “The Canadian market has begun to reflect a shift in values with an upward trend, in contrast to its behaviour from prior weeks,” the report reads.
So, what does all this mean for BCers looking to sell their car or buy second-hand?
Well, Mactavish says it’s difficult to know exactly how tariffs will impact the used vehicle market in the coming months, as Canada and the U.S. are in active negotiations. Some dealers are buying used vehicles to stock up on inventory. Some consumers are trying to be opportunistic and ask for higher prices on their used vehicles. Others are actively trying to get rid of their Teslas.
But as of April 3, the Canadian government has matched the U.S. tariffs (25 percent on non-CUSMA compliant vehicles and non-Canadian parts in all compliant vehicles).
“As prices go up across the board, new vehicles are getting more expensive and used vehicles go up, people will typically switch, and we see that in the data report,” Mactavish says, citing the finding that 30 percent of British Columbians have changed their mind on a major purchase or sale because of the political uncertainty.
And that theme of uncertainty remains a constant amid the ever-changing tariffs, and the now upcoming federal election. “As we learn more and as the industry gets a better handle on what these fees and tariffs are actually going to be, and how they change over time, I think we’ll start to see that uncertainty settle, and we’ll get to a place where we’ll know more about the supply and demand constraints across North America,” Mactavish says.