Canadian Used Vehicle Market Sees Steady Price Declines Amid Economic Softening – September 2025 Overview
In September, the Canadian used wholesale market experienced a steady downward trend, with weekly price declines ranging from 0.16% to 0.29%. This consistent softening reflects ongoing market adjustments and seasonal normalization, with only minor weekly fluctuations observed. The car segment saw weekly depreciations between 0.12% and 0.23%, with nearly all categories following this downward trajectory. Full-Size Cars led the declines, dropping by as much as 1.62%, while Premium Sporty, Near Luxury, and Luxury Cars showed the most resilience, with only slight decreases between 0.01% and 0.12%. Similarly, the truck and SUV segment experienced broad-based declines, with weekly depreciations ranging from 0.22% to 0.57%. Full-Size Luxury Crossover/SUV, Full-Size Van, and Minivan categories were the most affected, posting drops of up to 0.86%, though Full-Size Crossover/SUV occasionally demonstrated modest gains under 0.15%.
Wholesale inventory levels mirrored these trends, with auction sale rates fluctuating between 31% and 50% amid economic uncertainty, political factors, and firm seller pricing. Supply remained stable, supported by upstream channels prioritizing frontline-ready vehicles, and demand for high-quality inventory persisted in both Canadian and U.S. auctions despite lower wholesale values. Retail pricing followed a mild downward trend, with the 14-day moving average of used vehicle prices ranging from $37,600 to $37,700 across roughly 220,000 dealer listings, indicating gradual softening while overall supply and demand held steady.
Economically, Canada showed signs of moderation in September. GDP declined by 0.4% in Q2 2025, and labor productivity fell by 1.0%, while inflation edged up to 1.9%, remaining below the Bank of Canada’s target. Year-over-year earnings increased by 3.7%, and the federal budget posted a $3.6 billion surplus, reflecting fiscal strength. Although the trade deficit narrowed and manufacturing sentiment improved, housing starts dropped 16%, and the Canadian dollar held steady between $0.72 and $0.73 USD. Overall, the economic landscape suggests a moderately slowing yet stable environment.
Shifting Trends Define Canada’s Light Vehicle Market in Q3
In the third quarter, the Canadian light vehicle market experienced several notable shifts at the segment level. The subcompact car segment, which had shown significant growth in the first half of the year, saw sales decline by 33.7% in Q3. This pullback caused the segment to fall out of the top three year-to-date performers from a percentage growth perspective. In contrast, the intermediate car segment showed a remarkable turnaround, with sales rising 43.3% during the quarter, driven by strong performances from the Toyota Prius and Camry after a weak start to the year.
Canadian Auto Sales Edge Higher Despite Tariffs and Economic Uncertainty
Canadian new-vehicle sales rose an estimated 3.7% in September, reaching about 163,000 units, according to DesRosiers Automotive Consultants (DAC). The firm described the result as “reasonable” in light of ongoing economic uncertainty and escalating U.S.–Canada trade tensions. The increase came against a weak September 2024 baseline and included one extra selling day, but sales still lagged behind historical levels of 172,000 in 2020 and a record 187,000 in 2017. Year-to-date, sales are up 4.5% to 1.47 million vehicles, though the sector is grappling with squeezed margins and pricing pressures as trade disputes continue.