New vehicle sales in Canada edged up two per cent in 2025, but affordability concerns and trade uncertainty continue to shape buying decisions in ways that will have long-term implications for the independent aftermarket.

According to the 2025 CADA Data Report released by the Canadian Automobile Dealers Association (CADA), Canadians purchased 1,897,055 new vehicles last year. While the increase is a positive sign for the retail market, the report suggests consumers remain under financial pressure, delaying purchases, financing larger amounts and holding onto their vehicles longer.

For independent repair shops, that’s a familiar story.

As consumers stretch vehicle ownership to offset higher purchase prices and financing costs, demand for maintenance and repair services is expected to remain strong. Older vehicles typically require more service, creating ongoing opportunities for the aftermarket even as the pace of new vehicle replacement remains uneven.

“The increasingly volatile commercial and trade environment has introduced new uncertainty for dealers, manufacturers and consumers alike,” said Tim Reuss, president and CEO of CADA.

“Reliable market data helps businesses adapt, informs policymakers and highlights the significant economic contribution made by Canada’s franchised new-vehicle dealers.”

The report, which draws on data from Statistics Canada, J.D. Power, Canadian Black Book, DesRosiers Automotive Consultants and other industry sources, found that the average amount financed for a new vehicle climbed to $57,981 in 2025. Hybrid registrations continued to increase, while registrations of battery-electric vehicles declined.

Those findings reinforce a market where affordability remains the dominant influence on consumer behaviour.

“Affordability is one of the defining themes across the automotive retail sector, and nearly every dataset in this report reflects that,” said Charles Bernard, CADA’s chief economist. “Elevated vehicle prices, financing costs and household budget pressures are prompting consumers to keep vehicles longer, focus more closely on monthly payments and seek greater value throughout the ownership experience.”

For repair shops, that means the vehicle parc is likely to continue aging, even as electrification advances more gradually than many had anticipated. Shops can also expect to see a growing mix of conventional powertrains, hybrids and battery-electric vehicles entering their bays over the coming years, increasing the need for technicians and equipment capable of servicing multiple vehicle technologies.

While the report focuses on franchised dealerships, its findings underscore a broader reality across the industry: affordability—not technology—is currently the biggest factor shaping Canada’s vehicle fleet, and that trend is likely to benefit the service and repair sector for years to come.