Cars keep getting more expensive but Albertans are still buying plenty — before tariffs really bite

Across Alberta, more people are buying new vehicles even as prices have been shooting up.

Statistics Canada says new motor vehicle sales in the province hit a seven-year high in May, with 23,691 units sold.

The province hasn't seen that many vehicles sold in a month since May 2018.

The price of the vehicles sold in May 2025 totalled $1.42 billion, an all-time record in terms of dollars.

It continued a strong start to the calendar year for vehicle sales, which has come as a surprise to many in the industry.

"If someone would have told me back in February that we'd be sitting here at the end of June with Ford having as good a year, and some other auto manufacturers as well, I would have said not a chance," said Marty Giles with Northstar Ford in Calgary.

Mark Parsons, chief economist with ATB Financial, says it's unusual to see both prices and demand go up at the same time.

He believe several factors are driving sales right now.

"One is front-loading: getting ahead of tariff pressures," he said. "You're starting to see some early signs that tariffs are creeping through to vehicle prices but we haven't felt the full impacts yet. So folks are trying to get in front of that, and buy their vehicles now, while they can."

Parsons said Alberta's rapid population growth and pent-up demand from the pandemic are also at play.

He expects sales numbers to fall as price pressures continue to build later in the year.

"It's been a good run," said Gerald Wood with the Motor Dealers Association of Alberta.

"Everybody's still a little bit concerned about what the second half of the year ultimately is going to look like, but we're just trying to deal with what we can control now and make sure that we satisfy as many customers as we possibly can."

He says vehicles are getting more expensive because input costs are going up across the supply chain, including the cost of transport and the vehicle components, themselves.