Canadian New Vehicle Sales Rise in July, Led by Strong Gains in Ontario and Atlantic Provinces
Canada’s new light vehicle market showed strength in July 2025, with sales up 6.9% year over year to an estimated 172,000 units, bringing year-to-date sales to 1.15 million, a 5.8% increase.
Ontario, which had been underperforming much of the year, gained momentum with an 8.8% rise, while Atlantic provinces led growth—Nova Scotia up 22.3%, PEI 15.5%, and New Brunswick 13.0%—alongside Saskatchewan at 10.8%.
Alberta, Manitoba, and Newfoundland, though still ahead on a year-to-date basis, experienced softer results.
Despite ongoing tariff concerns and broader economic challenges, analysts noted the market’s resilience but cautioned that unresolved trade issues could create regional and segment distortions.
Canadian Used Vehicle Market Faces Broad Declines Amid Economic Headwinds – August 2025 Update
In August 2025, the Canadian used wholesale market continued its downward adjustment, with prices falling nearly 1% across the month. Cars and trucks both declined around 0.9%, though performance varied by category. Mid-Size Cars, Sub-Compact Cars, Sporty Cars, and Prestige Luxury models saw the steepest losses, while Compact and Luxury Cars registered smaller dips and Full-Size Cars posted modest gains. On the truck and SUV side, Sub-Compact Crossovers, Full-Size Pickups, Compact Vans, and Full-Size Vans recorded the sharpest declines, though Small Pickups and Compact Vans occasionally provided stability. Auction sale rates fluctuated widely, averaging 38–43%, as sellers held firm on pricing amid economic uncertainty, while upstream channels continued to secure frontline-ready vehicles before they reached auctions. Retail pricing softened only slightly, with the national average listing price easing from $37,700 to $37,500.
Used Vehicle Prices Show Mixed Trends in August Amid Tight Supply and Weakening Consumer Sentiment
Wholesale used-vehicle prices showed mixed movement in early August. On a seasonally adjusted basis, the Manheim Used Vehicle Value Index dropped to 206.5, reflecting a 1.2% increase from August 2024 but lower than July due to stronger seasonal adjustments. Unadjusted prices, however, rose 0.6% compared to July and were 1.3% higher year over year, signaling stronger-than-typical appreciation for the month. Analysts noted that late July and early August brought stronger retail and wholesale sales, adding volatility to pricing trends. Inventory tightened to its lowest level since April, keeping wholesale demand steady despite earlier tariff-related disruptions.