Wholesale vehicle values in Canada fell 4% in the first half of the year, but the second half is likely to show slower declines that the same period of 2025, according to a report last week from Canadian Black Book.

The CBB Used Vehicle Retention Index came in at 128.0 for June, down from 129.7 in May and 8% softer than June 2025.

This “wholesale correction” comes at time of geopolitical challenges whose impacts are become more clear, plus sluggish consumer sentiment and expectations for a lift in used-car supply, CBB said.

“With the end of June marking the halfway point of 2026, the car market has declined 4% year-to-date and has recorded wholesale declines in three of the first four months of the year,” CBB director of strategic market insights Daniel Ross said in analysis around the index. “The market continues its wholesale correction.

“With the situation surrounding the Strait of Hormuz becoming clearer and a decision — albeit an unfavorable one — on the path forward with CUSMA, the car market can better define its trajectory for the remainder of 2026,” Ross said. “Compared to the previous year, the market is expected to experience less value decline over the next six months.

“However, negative sentiment remains prevalent in the Canadian car market. New-vehicle sales continue to slow, incentives continue to rise, and the challenges posed by new market entrants continue to weigh on consumer sentiment toward legacy manufacturers, particularly in the electric vehicle segment,” he said. “All of this comes as the used-vehicle supply is expected to begin increasing in the near future, with some market participants already observing this trend alongside stagnating inventory.”