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January Market Overview: Gradual Cooling Across Canada’s Used Vehicle Market

The Canadian used wholesale market declined steadily throughout January, with prices falling each week and limited signs of recovery. Both car and truck segments experienced consistent softening, with moderate but persistent depreciation reflecting a broader market correction and cooling demand.

Wholesale inventory conditions remained soft, with uneven auction activity influenced by economic uncertainty, firm seller pricing, and variable sales rates. While inventory supply rose early in the year before stabilizing, access remained constrained upstream. Demand for high-quality vehicles stayed steady, supporting selective buying.

Used retail pricing edged slightly lower over the month, with gradual declines in average listing prices. Dealer inventory levels remained stable nationwide, indicating a controlled and orderly easing in retail conditions.

Economically, Canada showed mixed momentum. Modest GDP growth contrasted with weak manufacturing activity and a rising unemployment rate. Inflation ticked higher, financial conditions loosened, bond yields declined, and the Canadian dollar weakened slightly. Trade data improved due to stronger exports, retail sales remained resilient, and trade discussions with China advanced on investment, agriculture, and potential EV import limits.

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