Canadian Used Car Market Trends 2025: Wholesale Prices Dip Slightly in Early July
Canadian Used Car Market Trends 2025: Wholesale Prices Dip Slightly in Early July
The Canadian used car market trends in 2025 continue to show signs of softening, with wholesale prices dipping for the week ending July 5. According to recent data, the overall market saw a modest decline of -0.13%, following a steeper drop of -0.32% the week prior.
Canadian Used Car Market Trend 2025: Performance Variations in Car and Truck Segments
Based on Canadian Black Book, Car segment prices edged down slightly by -0.04%, with the Luxury Car and Prestige Luxury Car categories seeing the biggest drops at -0.07%. However, not all segments followed the downward trend. Mid-Size Car prices rose by +0.04%, and Compact Van prices climbed by +0.25%, defying the general movement in the Canadian wholesale vehicle prices this July.
Trucks and SUVs saw broader declines, with a -0.20% overall change. The sharpest drop came from the Full-Size Crossover/SUV category, falling -0.97%, followed by Full-Size Luxury Crossover/SUVs at -0.50%. These results highlight the continued depreciation of truck and SUV values in Canada as consumer demand and auction dynamics evolve.
Retail Prices and Auction Activity
Retail prices are also showing a slow decline. The 14-day moving average listing price for used vehicles is now $37,500, based on a sample of 220,000 vehicles listed across Canadian dealer lots. Auction sale rates varied widely, ranging from 7.6% to 57.1%, with an average of 32.2%. High supply and ongoing access by upstream channels are impacting sale rates.
Economic Influences on the Market
Macroeconomic indicators are playing a role in current trends. Canada’s annual inflation rate held steady at 1.7% in May, while manufacturing sales are expected to decline by 1.3%. The Canadian dollar gained slightly to $0.734, and the 10-year government bond yield dropped to 3.26%. GDP is also estimated to have dipped by 0.1% in May, reflecting broader economic softness.
EV Legislation and Tariff Impacts
In a move set to influence EV adoption trends, Quebec is adjusting its legislation to allow hybrid vehicles to count toward its EV mandate. This opens the door for a wider range of compliant models as the province targets 85% zero-emission vehicle sales by 2030, in line with Canada’s national goal of 100% by 2035.
Meanwhile, tariff impacts on auto production in Canada are making waves. Nissan has suspended production of several U.S.-built models for Canada, including the Pathfinder and Frontier, amid trade tensions. Similarly, Mazda is shifting production of the CX-50 away from its Alabama plant due to steep tariff costs, opting to increase output from its Mexican and Japanese facilities.
Adding to industry concerns, President Trump’s new 25% tariffs on Japanese and Korean vehicle imports—effective August 1—are expected to disrupt supply chains further, especially with the termination of the U.S. Federal EV tax credit now on the books.
Conclusion
The Canadian used car market trends in 2025 reflect a cautiously softening environment influenced by macroeconomic pressures, shifting auction dynamics, and policy changes both domestically and internationally. Industry watchers will continue to monitor pricing trends, inventory shifts, and trade developments closely in the coming weeks.
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