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Is It a Good Time to Buy a Car in Canada?

October 22, 2025
good time to buy a car

Buying a car is a major financial decision, and with car prices fluctuating, it can be challenging to determine when is the right time to buy a car financially. If you're in Canada and wondering whether it's a good time to buy a car, you're not alone. Whether you're eyeing a brand-new model or a pre-owned vehicle, several factors come into play, from seasonal sales to market trends, and even the economy. Let’s dive into the current state of the car market and uncover the best time to purchase a used car or a new vehicle in Canada in 2026.

Why Timing Matters When Buying a Car

Buying a car at the right time can save you hundreds, if not thousands, of dollars. For Canadians, knowing the best time to buy is even more crucial due to seasonal price fluctuations, inventory changes, and financing deals.

When is the right time to buy a car financially? The answer depends on a combination of market trends, car type, and your personal financial situation. Below, we’ll break down the best times to buy different types of vehicles, as well as tips for financing and ensuring you get the best deal.

Read More: Typical Car Payment in Toronto

The Best Time to Buy a New Car in Canada

When shopping for a new car, timing your purchase can result in significant savings. The best time to buy a new car typically falls during these periods:

  • End of the Year (November-December): Dealerships are eager to meet yearly sales goals, which means there are often more promotions, rebates, and discounts available.
  • End of the Month or Quarter: Salespeople are working toward quotas, so they may be more willing to negotiate and offer better deals.
  • Model Year Changeovers (Late Summer to Fall): When new models arrive, dealers are looking to clear out older stock. This is the best time to purchase a used vehicle or a discounted new car.

Read More: Used Toyota Inventory

The Best Time to Buy a Used Car in Canada

The best time to buy a used car in Canada can vary, but there are general trends to be aware of:

  • Late Fall to Winter (October-February): During these months, demand tends to slow down, especially as winter sets in. People are less likely to buy cars, and sellers may be more willing to negotiate prices.
  • Holiday Weekends: Labour Day, Thanksgiving, and other long weekends often come with special sales, making it the best time to purchase a used car.
  • When Car Loan Rates Are Low: You should also keep an eye on interest rates. If you can secure a lower financing rate, it could be a good time to buy a car—whether it’s new or used.

Read More: Car Insurance Search in Ontario

Factors That Affect the Timing of Your Purchase

  • Seasonality: Car sales tend to dip during winter, but the inventory of used cars can be lower due to fewer people selling their vehicles.
  • Interest Rates: As the Bank of Canada adjusts interest rates, it can directly affect your monthly payments and overall cost. A low-interest period can make it a good time to buy a car.
  • Car Manufacturer Deals and Rebates: Often, car manufacturers offer limited-time promotions or rebates, which can make it the best time to buy a car if you’re eyeing a new model.

Read More: Top 10 Fuel Economy Used Cars in Toronto

Is It a Good Time to Buy a Car in 2026?

In 2026, the Canadian automotive market is expected to show a mix of opportunities and challenges for car buyers. While some market conditions will remain steady, others may present new trends and factors to consider when deciding if it’s a good time to buy a car.

  • New Car Prices:The shift towards electric vehicles (EVs) will continue in 2026, which could influence the prices of traditional gasoline-powered cars. With more manufacturers releasing EVs and hybrids, you might find better incentives for these vehicles. Keep an eye out for discounts and rebates that can make it a good time to buy a car if you're interested in going green.
  • Used Car Prices: The prices of used cars in Canada should remain relatively stable in 2026 compared to the previous years. However, the ongoing effects of the pandemic and chip shortages may continue to have some impact on used car availability. For those looking for a good time to buy a used car, inventory levels should be more predictable, and prices might even see slight reductions in certain regions.
  • Financing Trends: Interest rates in Canada are expected to stabilize in 2026, which could offer more favorable conditions for buyers. Low-interest financing options may make it an ideal time for those with solid credit scores to purchase a car at a lower overall cost. Even if your credit is less-than-perfect, dealerships like CarRookie specialize in working with buyers with poor credit to secure financing.
  • Economic Factors: Inflation rates may have a moderate impact on car prices, but it’s expected that the Canadian economy will grow steadily in 2026, which could stabilize car prices overall. If you’re waiting for a better deal, this might be a good time to buy a car, especially when combined with lower interest rates and model year-end sales.

In conclusion, 2026 looks promising for buyers across Canada. Whether you're interested in a new car or a used vehicle, it's likely to be a good time to buy a car if you stay informed about market trends and are flexible with your financing options.

Read More: Is a Used Toyota Camry Worth It?

Is it a Good Time to Buy a Car if You Have Poor Credit?

Absolutely! Even if you have poor credit, it’s possible to find deals that make it the best time to buy a car. Here’s where a trusted car dealership like CarRookie can help. CarRookie connects buyers with the top agents in the country and can assist in securing a car loan, even if you have a less-than-ideal credit score.

Read More: Should I Buy a New Car or Used Car?

How to Make the Best Deal: Tips for Car Shoppers

  1. Know Your Budget: Understand how much you can afford for both the down payment and monthly payments. This will help narrow down your choices and prevent overextending yourself financially.
  2. Do Your Research: Use online tools to compare prices for both new and used vehicles. Knowing the market value of the car you're interested in can help you negotiate better.
  3. Consider Financing: Shop around for the best financing options. Dealers may offer special promotions, but it's wise to check with your bank or credit union for competitive loan rates.
  4. Inspect the Vehicle: Whether new or used, always have a mechanic inspect the car before finalizing the purchase.

Read More: Financing a Toyota in Ontario

FAQs

What is the best time to buy a new car in Canada?

The best time to buy a new car in Canada is typically at the end of the year (November-December), when dealerships offer clearance sales to meet annual sales targets.

When is the best time to buy a used car?

The best time to buy a used car is usually in late fall or winter, as demand is lower during these months, leading to potential price reductions.

Should I buy a car when interest rates are high?

If interest rates are high, it may not be the best time to buy a car. You might want to wait until rates decrease, or look for dealerships that offer lower financing rates.

How can I buy a car with poor credit?

Even with poor credit, you can still buy a car. Look for dealerships like CarRookie, who specialize in connecting buyers with lenders who work with individuals with low credit scores.

Is it cheaper to buy a car at the end of the month?

Yes, the end of the month is a good time to buy a car as dealerships are often trying to meet sales quotas and may offer better deals.

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