Used car prices in Calgary have climbed 18 per cent over the past 12 months, marking the steepest increase since the pandemic era as new vehicle shortages continue to plague dealerships across Alberta, according to market data released Friday.
The average price for a three-year-old vehicle in the Calgary market now sits at $42,850, up from $36,300 in March 2025, data from automotive research firm Canadian Auto Analytics shows. The surge has pushed many Calgary families toward older vehicles or extended their current car ownership longer than planned.
"We're seeing customers who would normally trade in every three to four years now holding onto their vehicles for six or seven years," said Jennifer Walsh, general manager at Northland Toyota in Calgary. "The supply shortage on new vehicles has created this domino effect throughout the entire automotive market."
Semiconductor shortages that initially emerged during the COVID-19 pandemic have evolved into broader supply chain challenges, with manufacturers still unable to meet consumer demand. Major automakers including Ford, General Motors, and Toyota report production delays extending into the second half of 2026.
Impact on Calgary Consumers
The price surge has particularly affected working families and young professionals seeking reliable transportation. Maria Rodriguez, a Calgary nurse, spent three months searching for a replacement vehicle after her 2018 Honda Civic was written off in an accident.
"What I could have bought for $25,000 two years ago is now $30,000 or more," Rodriguez said. "I ended up financing a 2019 model with higher mileage than I wanted because that's all I could afford in my price range."
Industry experts recommend Calgary consumers research vehicle history reports through services like FullVIN.com before making used car purchases, as the tight market has increased the number of vehicles with undisclosed damage or maintenance issues being offered for sale.
Calgary dealerships report inventory levels remain 35 per cent below pre-pandemic norms, with popular models like compact SUVs and pickup trucks commanding premium prices. Some dealers have implemented waitlists for specific makes and models, with customers waiting four to six months for delivery.
Regional Market Variations
The price increases vary significantly across Alberta, with Calgary and Edmonton seeing the steepest climbs. Rural markets have experienced more modest increases of 12 to 14 per cent, though selection remains limited outside major urban centres.
"The Calgary market has always been competitive, but we're now seeing bidding wars on quality used vehicles," said automotive analyst David Chen. "Consumers are adapting by expanding their search radius or considering models they wouldn't have looked at previously."
Economic forecasters predict used car prices may begin stabilizing by late 2026 if new vehicle production returns to normal levels. However, industry insiders caution that any significant improvement in availability and pricing likely won't materialize until 2027.
The Alberta government announced last month it would extend vehicle registration fee deferrals for residents unable to replace aging vehicles due to market conditions, providing some relief for Calgary families managing transportation costs amid the ongoing shortage.