One of the best times to buy a car in Canada is during the fall as dealerships look to clear inventory of current model years, but discounts available depend on particular vehicle demand, how much stock dealers have on hand, and when the next model year arrives on dealer lots.

Why buying a car in the fall can save you money

David Adams, the former president and CEO of Global Automakers of Canada, views winter months to be slower than the spring between April and June, which can spur car makers to offer incentives or discounts to move their inventory.

“Manufacturers and dealers keep an eye on their inventories and if those are rising for particular models they will be incentivized to move them,” he says. “Generally speaking, once the fall rolls around, manufacturers and dealers are trying to sell off their inventory of the current year.”

Which types of cars have better deals and discounts?

Deals can be dependent on supply and demand, which can change depending on the type of car. For example, trucks and SUVs are in high demand, representing nearly 90% of all vehicle sales, according to Adams, while passenger vehicles only make up 10% of sales. 
This means that dealers could have ample supply of passenger vehicles and be more willing to offer good deals to get that supply moving compared to trucks and SUVs.

Hybrid cars are also hot commodities, Adams says, as they save about 20% on fuel and do not require infrastructure to support them. “Toyota and others cannot keep enough hybrids in stock,” he says.

Are deals on cars always in the fall?

No, Adams notes that car makers don’t always introduce new models in the fall, and some do so at other points in the year, such as right at the beginning in January. This means that for some models, the fall may not offer many discounts in an effort to “sell off the old models”.

If you hope to get a used car instead of new to offset costs, Adams warns that they may not always be such a great deal compared to a new vehicle off the lot. Instead, it is more of a balance between supply and demand.   

“If new vehicle prices are high, consumers substitute nearly new vehicles to save money, which in turn increases the demand for used vehicles, and then supply-and-demand increases used vehicle prices as well,” he cautions.

Do new Chinese EVs offer a good deal?

If you are considering a Chinese Electric Vehicle (EV) to save a bit of money, as they tend to be cheaper, Adams advises caution. 
He notes that only 60% of the nearly 25,000 allocation had been filled for Chinese EVs into Canada for the first part 2026 until the end of August. 

That means that Chinese EVs aren’t yet flooding the market as some predicted, and many of the Chinese EVs brought in within the allocation are from existing brands such as Tesla, Volvo, and Polestar. 

Chinese EV Lotus does have product on the ground, but in very small quantities and at very high price points, Adams says.

Can you easily service Chinese EVs?

What is of more concern to Adams is the ability to get Chinese EVs serviced in Canada if there still aren’t large quantities of them here.

“The open questions for those considering Chinese EVs is will there be a network of service centres or dealerships where the vehicles can be serviced?” he asks. “What happens if a brand decides that the Canadian market is not worthwhile – will owners be left with technologically advanced orphans?”

How to find a car deal: Buying tips from a pro

Shopping around at dealerships with ample supply, especially during the last days of a month, and keeping track of wider geopolitical events could increase your chances of a good deal.

Since deals on vehicles are so dependent on supply, Adams recommends visiting a number of manufacturer’s dealers that carry the vehicle you’re interested in. 

If there is ample supply of that model on dealer lots, then you should be able to get a better deal, he says. But if no dealer has the vehicle that you’re looking for, then “chances are your discount will be limited.”

Companies like JD Power do track incentive levels on vehicles and “days to turn” to flip inventory, but those numbers are not readily available to the consumer, notes Adams.

At a more detailed level, he suggests trying to go to a dealership in the last couple days of the month, especially the winter months, which could increase your chances of getting a good deal. That’s because dealers are trying to make their sales numbers, and have added pressure from manufacturers to do so.

How do geopolitics and economic policy impact car prices?

Besides shopping in the later months of the year to nab a good deal on a vehicle, Adams recommends being “mindful of the broader geopolitical environment”. 

Economic circumstances such as the state of Canada’s economy could impact whether interest rates increase or decrease. The Bank of Canada’s overnight rate changes could in turn impact leasing and financing rates for consumers, according to Adams. 

What are the effects of tariffs on car prices? 

As a result of the U.S. – Canada tariff spat that has intensified through 2026, manufacturers are either not selling certain U.S. made models in Canada or shifting production away to other countries.

Canada implemented a counter-tariff on some U.S. vehicles after the U.S. placed tariffs on Canadian-made cars. Total tariffs for imported vehicles from the U.S. that are non-CUSMA compliant is 31.1%

As a result of the 31.1% tariffs for some U.S. origin imports, automakers have stopped bringing in some models, are preventing sales of those vehicles, or shifting production to other countries. Here's a summary of the tariff impact on cost and availability of certain car models directly affected by recent trade developments.

Source: driving.ca, Reuters

How to avoid tariff impacts when buying a car in Canada

Buying local brands that Canadians are boycotting as they consider them U.S. cars after the tariff spat could help with finding a good deal.

Tariffs the U.S. set on Canada have created a movement to ’Buy Canadian’, but Adams says that a savvy shopper could use that mentality to their advantage while still avoiding American products. 

To determine origin, Adams recommends checking the car’s Vehicle Identification Number (VIN). American-built vehicle VINs begin with a 1, 4, or 5. 

“For consumers, they normally think of ‘American built’ vehicles as those produced by Ford, GM, or Stellantis,” he notes. “Canadian consumers may be able to get a better deal on those vehicles as many buyers are boycotting those brands because they are notionally identified as being American brands, even though many of their models may be built elsewhere.”