Cost of New Cars in Canada (November 2025)

Understanding Today’s New-Car Prices

Buying a brand-new vehicle can be exciting — but in Canada, many shoppers are surprised by how expensive the market has become. Whether you’re purchasing your first car, upgrading, or simply researching, this guide provides clear, up-to-date information to help you make a smart and confident decision.



Why New Cars Are So Expensive in Canada

Rising Average Prices

  • In early 2025, the average price of a new vehicle in Canada reached $65,317 CAD (Canadian Auto Dealer).

  • Another source reported an average of $66,422 CAD for 2024 (finder.com).

  • There are signs of easing: one Q3 2025 index showed new-vehicle prices dipping 4.9%, with an average of $63,264 CAD (Empty Tank).

What’s Driving High & Fluctuating Prices

  • Manufacturing costs, global supply limitations, and rising demand for advanced features continue to push MSRP Canada upward (Motor Illustrated).

  • Larger vehicles — SUVs and trucks — carry significantly higher base prices than compact cars.

  • Taxes, freight and delivery fees, and provincial charges inflate costs beyond the sticker price.

  • Depreciation, financing interest, insurance, and operating expenses also factor heavily into overall ownership costs.

What “How Much Is a New Car?” Looks Like in Practice

Entry-Level / More Affordable Models

If you’re focused on budget-friendly options:

  • The 2025 Mazda3 starts around $27,687 CAD in Canada (CarGurus).

  • A few other compact models remain in the high-$20,000 range, but new cars under $30k are becoming increasingly rare.

Mainstream Vehicles

For many typical buyers:

  • Expect to pay $60,000+ CAD for a new vehicle in Canada in 2025 once common features and packages are included. One source cites an average of $66,288 CAD.

  • Larger vehicles, premium trims, electrics, and hybrids can drive prices much higher.

Other Costs You Should Consider

The sticker price is only the start. New vehicles in Canada typically include:

  • Destination/freight charges

  • Provincial sales taxes (GST/HST/PST)

  • Licensing and registration fees

According to Minha PME, many add-ons push the final price far beyond MSRP.

And don’t forget long-term expenses: the average monthly cost of vehicle ownership — including payments, interest, fuel, maintenance, insurance, and parking — was about $1,370 CAD in 2024 (Ratehub.ca).

Read More: New Car Wait Times Canada 2026

5 Smart Questions to Ask When Buying a New Car

  1. What is the MSRP Canada, and what additional fees apply (destination, taxes, licensing)?

  2. How will the loan term and monthly payment affect your overall budget?

  3. What is the vehicle’s expected depreciation over 2–5 years?

  4. What are the ongoing operating costs (fuel/charging, insurance, maintenance) in your province?

  5. Are there better-value alternatives, such as lightly-used models or lower trims, if your budget is tight?

Best Practices for Canadian Car Buyers

  • Set a realistic budget based on your income; with average new-car prices above $60k, avoid stretching yourself too thin.

  • Compare prices between provinces — tax differences may save you money.

  • Consider timing: With some recent price drops (e.g., the 4.9% decline in Q3 2025), deals may be improving.

  • Negotiate and review incentives: Ask about dealer or manufacturer offers, and confirm exactly which features you’re paying for.

  • Think long-term: Insurance, maintenance, resale value, and operating costs should all factor into your decision.

Final Thoughts

New-car prices in Canada currently sit well above the $60,000 CAD mark, which can be challenging for many buyers. Affordable models still exist, but being informed — and realistic — is essential. By researching thoroughly, comparing options, and budgeting beyond the upfront cost, you’ll be much better equipped to make a confident purchase.

If you’d like help navigating the market, a trusted dealership partner can make the process easier. For example, CarRookie, a Toronto-based dealership, connects buyers with top agents and helps them find the right vehicle — even if their credit isn’t perfect.

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