Canadian vehicle owners are facing a significant shift in resale values, with new industry findings showing that vehicles are retaining substantially less of their original value than they did just one year ago.
Canadian Black Book’s 2026 Best Retained Value Awards, announced October 19, reveal that 2023 model-year vehicles retained an average of just 57% of their original manufacturer’s suggested retail price under the organization’s four-year valuation measure. That represents a sharp decline from the 67.5% average reported in the previous awards.
The results highlight growing depreciation pressures across Canada’s automotive market, even as certain manufacturers continue performing exceptionally well.
Toyota remains the dominant mainstream brand, Porsche leads the premium category, and Kia has emerged as the strongest electric vehicle brand.
For consumers, the findings reveal why choosing a vehicle with strong resale performance can make a meaningful difference to long-term ownership costs.
Canadian Vehicle Value Retention Falls 10.5 Percentage Points in One Year
Canadian Black Book’s latest results reveal a substantial deterioration in the average value retained by vehicles in its annual awards program. The 2026 findings show 2023 model-year vehicles retaining approximately 57% of their original manufacturer’s suggested retail price, compared with 67.5% in the 2025 awards. That represents a decline of 10.5 percentage points, equivalent to a roughly 15.6% reduction in the retention ratio. Put another way, the average depreciation reflected in the awards has increased from 32.5% of the original sticker price to 43%. For consumers who purchased relatively expensive vehicles, even a modest change in resale performance can translate into thousands of dollars when they eventually trade or sell.
The distinction between the two measurements is important. Canadian Black Book’s annual awards compare different model-year groups using a standardized four-year retained-value measure. They do not establish that every vehicle on Canadian roads lost an additional 10.5% of its value during the past twelve months. Nor does the 57% figure represent the price every owner would receive at a dealership. Actual resale values depend on vehicle age, mileage, condition, equipment, and demand. Nevertheless, the industry-wide average provides a useful indication of how dramatically Canada’s used-vehicle market has changed. Daniel Ross, Canadian Black Book’s director of strategic market insights, characterized the latest results as evidence of particularly difficult conditions affecting both consumers and manufacturers.
Canadian Resale Values Have Fallen Sharply From Their Pandemic-Era Peak
The latest decline becomes more striking when compared with the unusual conditions that shaped Canada’s automotive market during the COVID-19 pandemic. In 2022, Canadian Black Book reported that vehicles retained an average of 80% of their original MSRP, an unprecedented high for its awards program. Some categories even recorded values exceeding their original sticker prices, an extraordinary development in an industry where depreciation is normally expected. Limited vehicle availability and unusually strong demand helped create conditions that allowed some used vehicles to command exceptional prices. For motorists who purchased vehicles before the supply disruptions, the resulting resale values were sometimes surprisingly favourable.
That environment has changed significantly. Canadian Black Book’s average retained-value results declined to 77% in 2023 and 67% in 2024 before recovering slightly to 67.5% in 2025. The latest 57% reading places the industry 23 percentage points below its 2022 peak. The pattern reflects a market gradually moving away from the extraordinary pricing conditions of earlier years. Canadian Black Book’s 2026 outlook identifies affordability pressures, trade uncertainty, changing incentives, and evolving electric vehicle demand as important influences on depreciation. However, no single factor fully explains the latest 10.5-point drop. Different model-year groups, shifting consumer preferences, and changes in vehicle prices all affect the results. The broader lesson is that the exceptionally high resale values experienced during the pandemic were not sustainable indefinitely.
Toyota Maintains Its Position as Canada’s Strongest Mainstream Brand
Despite the broader decline, Toyota remains the standout manufacturer in Canadian Black Book’s retained-value rankings. The company won the Overall Brand: Mainstream award for the tenth consecutive year, extending a remarkable period of consistent performance. Toyota Canada reported receiving eight honours when its Lexus luxury division is included. The Toyota Corolla once again captured the mainstream passenger-car category, finishing ahead of the Camry and Prius. All three podium positions therefore belonged to Toyota, illustrating the manufacturer’s strength among conventional family cars and hybrids. The result reinforces the continued importance of established, practical models in a market where many consumers are increasingly concerned about affordability and long-term ownership costs.
Toyota’s success extends well beyond sedans. The Corolla Cross moved from third place in the previous awards to first in the mainstream subcompact and compact SUV category. The Toyota RAV4 finished second, while the Toyota C-HR completed the top three. That represents another complete podium for the manufacturer, including a vehicle assembled in Canada. Toyota’s consistent performance suggests that established nameplates remain attractive in the used market even as the broader industry experiences increasing depreciation. However, an award does not guarantee that every Toyota vehicle will outperform its competitors or retain an identical percentage of its original price. The results are based on specific vehicle categories and market conditions. For buyers, the rankings provide a useful starting point, particularly when comparing vehicles intended to remain in a household for several years.
Toyota Tacoma and Tundra Lead the Pickup Market as SUVs Show Mixed Results
Pickup trucks remain an important part of Canada’s used-vehicle market, and Toyota continues to perform particularly well in the category. The Toyota Tacoma earned its eighteenth consecutive Best Retained Value Award in the small and midsize pickup segment, extending one of the longest winning streaks in the program’s history. The GMC Canyon finished second, followed by the Chevrolet Colorado. In the full-size pickup category, the Toyota Tundra claimed first place for the fourth consecutive year. The Ford Super Duty ranked second, while the Chevrolet Silverado HD finished third. These results demonstrate that strong retained value is not limited to compact cars or smaller vehicles.
The rankings also show how vehicle utility can influence resale performance. Pickup trucks serve a wide range of purposes in Canada, from daily transportation to construction, towing, and recreational activities. Customers shopping for a used truck may prioritize reliability, mechanical condition, capability, and maintenance history over newer cosmetic features. Similar considerations apply to SUVs, although their performance varies considerably by segment. The Acura RDX led the premium subcompact and compact SUV category, while the Lexus LX topped the premium midsize and full-size grouping. Canadian Black Book also named the Toyota Sienna among its mainstream mid/full-size category winners, illustrating the importance of family-oriented vehicles in its published rankings. These results underline a central point: body style alone does not determine resale strength. Different vehicles appeal to different buyers, and category-specific comparisons are considerably more useful than relying on a single national average.
Plug-In Hybrids Continue to Demonstrate Strong Resale Performance
Electrified vehicles remain an increasingly important part of Canadian Black Book’s annual assessment, but the results reveal important differences between plug-in hybrids and fully electric models. The Toyota RAV4 Prime captured the mainstream plug-in hybrid category for the second consecutive year, ahead of the Subaru Crosstrek PHEV and Kia Sorento PHEV. In the premium plug-in hybrid category, the Porsche Panamera E-Hybrid retained first place, with the Lexus NX-Series PHEV finishing second and the BMW X3 PHEV third. These awards highlight the continuing appeal of vehicles that combine an external charging capability with a gasoline engine.
Plug-in hybrids can appeal to consumers who want to complete some everyday journeys on electricity while retaining gasoline-powered flexibility for longer trips. That combination may be especially attractive to Canadian motorists who regularly travel between communities or live in areas where public charging infrastructure remains uneven. However, actual operating costs and convenience depend heavily on driving habits and charging access. Canadian Black Book’s findings suggest that selected hybrid and plug-in hybrid models are retaining their value better than many competing vehicles, but the public awards summary does not establish that every plug-in hybrid depreciates more slowly than every battery-electric model. Purchase price, battery condition, operating costs, and local demand remain important considerations. The strongest-performing models appear to benefit from offering an appealing combination of familiar vehicle functionality and electrified technology.
Electric Vehicles Continue to Face Depreciation Challenges, but Kia Leads the Market
Battery-electric vehicles remain under pressure in Canada’s used market. Canadian Black Book acknowledged that fully electric models generally trail the broader automotive market in four-year value retention, although certain manufacturers are beginning to narrow the difference. Kia was named Overall Brand: Electric for 2026, moving ahead of BMW, which held the title in the previous awards. Chevrolet finished second in the latest electric brand rankings, followed by Tesla. Kia’s achievement was supported by the EV6, which repeated as the winner of the mainstream battery-electric SUV category. The Volkswagen ID.4 placed second, while the Hyundai Ioniq 5 finished third.
Other electric vehicle categories produced familiar winners and one significant first. The Chevrolet Bolt EV repeated as the strongest mainstream battery-electric passenger car, ahead of the Kia Soul EV and Nissan Leaf. Porsche’s Taycan retained its position as the leading premium electric passenger car, followed by the BMW i4 and Tesla Model 3. Meanwhile, Tesla secured its first category victory in the retained-value awards when the Model X finished first among premium electric SUVs, ahead of the BMW iX and Audi Q4 e-tron. These results show that electric vehicle depreciation is not uniform across brands or segments. An electric model can lead its category while still operating in a market where battery-electric vehicles generally experience greater depreciation than the industry average. For buyers, the findings reinforce the importance of evaluating specific vehicles rather than assuming all electric models perform similarly.
Porsche Remains the Premium Leader as Cadillac Makes a Major Improvement
Luxury vehicles face their own resale challenges, particularly when their original purchase prices are substantially higher than mainstream alternatives. Nevertheless, Porsche retained the Overall Brand: Premium award for 2026, continuing its strong performance across multiple vehicle categories. The Porsche 911 once again topped the sports-car category, finishing ahead of the 718 Boxster and Chevrolet Camaro. Porsche also earned first-place honours for the Panamera E-Hybrid and Taycan in their respective electrified categories. The manufacturer’s results demonstrate how a premium brand can perform well in retained-value rankings across traditional sports cars, plug-in hybrids, and fully electric vehicles.
Cadillac emerged as another notable winner. The American luxury manufacturer received the Overall Brand: Most Improved award, replacing Buick, which earned that distinction in 2025. Cadillac’s CT5 also moved into first place in the premium passenger-car category, ahead of the Lexus ES300h and BMW 3-Series. That represents a change from the previous awards, when BMW’s 3-Series held the top position and the CT5 ranked second. Cadillac also finished second in the Overall Brand: Premium ranking, with Lexus third. These results show that even within luxury categories, brand performance can shift meaningfully from one year to another. Strong resale performance is not determined solely by badge recognition or original sticker price. Used-market demand, product appeal, and changing customer preferences can allow one vehicle to move ahead of competitors that previously held an advantage.
Canada’s Used-Vehicle Market Is Stabilizing, but That Does Not Erase Earlier Depreciation
The new awards arrive at a time when other Canadian used-vehicle indicators are showing signs of relative stability. Canadian Black Book’s Used Vehicle Retention Index stood at 127.5 points in September 2026, unchanged from August. The organization described September as the third consecutive month of relatively stable conditions, with the index declining only 0.4% since June. However, the September reading remained 7.6% below the same month in 2025. These figures help explain why the latest awards and shorter-term market reports can appear to tell different stories. Vehicle values may stabilize over several months while remaining considerably lower than they were during an earlier period.
The measurements also cover different vehicle populations and reporting methods. Canadian Black Book’s monthly index tracks wholesale values for vehicles generally between two and six years old, applying adjustments for mileage, age, condition, and seasonal factors. The annual awards examine retained value through their four-year framework. Meanwhile, the company’s weekly report for the period ending October 10 showed Canadian wholesale prices declining 0.35%, including a 0.41% drop for passenger cars and a 0.30% decline for trucks and SUVs. The average advertised dealership price for used vehicles was approximately C$38,100, based on around 165,000 listings. That asking-price figure is not interchangeable with wholesale value or the awards’ 57% retention average. Together, these measures suggest a market that is becoming more orderly but remains exposed to continuing depreciation pressures.
A $50,000 Vehicle Shows How Lower Retained Values Affect Canadian Households
The financial impact of depreciation becomes clearer when applied to a hypothetical C$50,000 vehicle. At the 67.5% retention rate reported in the previous awards, that vehicle would have an illustrative retained value of C$33,750. Applying the latest 57% average instead produces C$28,500, a difference of C$5,250. The calculation demonstrates the potential significance of lower resale values, but it does not represent a real appraisal or prove that the same vehicle lost C$5,250 over the past year. The awards compare different vehicle cohorts, and individual resale prices may differ substantially. Nevertheless, the example illustrates why depreciation should be considered alongside fuel economy, insurance, reliability, and monthly financing payments when evaluating the cost of owning a vehicle.
Lower retained values can become especially problematic when vehicles are financed over long periods. The Financial Consumer Agency of Canada warns that negative equity occurs when a vehicle is worth less than the outstanding loan balance. Someone who finances an expensive vehicle and later trades it before paying down enough of the loan could face an unexpected financial shortfall. Dealership trade-in offers may also differ from advertised retail prices because dealers must account for reconditioning, inventory risk, and resale expenses. Ontario’s motor vehicle sales regulator advises consumers to consider condition, mileage, demand, and regional market conditions when evaluating trade-in offers. Comparing several appraisals and understanding the remaining loan balance can therefore be more useful than relying exclusively on a national retained-value percentage.
Canada’s Next Resale-Value Test Will Come as Supply and EV Competition Change
Canadian Black Book’s broader market outlook suggests that the used-vehicle industry will continue adjusting through the remainder of 2026 and into 2027. In February, the organization projected that Canada’s supply of used vehicles between zero and eight years old would decline by approximately 2.6% during 2026. Restricted supply can help support prices for desirable vehicles, particularly when affordable alternatives are limited. At the same time, Canadian Black Book expects growing numbers of off-lease electric vehicles to enter the used market, with EVs projected to account for approximately 11% of available used-vehicle supply. Those forecasts suggest that depreciation patterns could continue diverging sharply between vehicle categories and powertrains.
The next major milestone will be Canadian Black Book’s 2027 Best Residual Value Awards, scheduled for February 2027. Unlike the October retained-value awards, which evaluate past market performance, the residual-value awards use forecasting models to estimate how much value newer vehicles are expected to preserve in future years. The distinction is particularly important for consumers making new purchases because historical winners are not guaranteed to repeat their performance. Ultimately, the latest 57% result demonstrates why resale value deserves a more prominent place in Canadian automotive purchasing decisions. A lower initial price does not always produce the lowest long-term ownership cost, while an expensive vehicle may prove more economical than expected if it retains a substantial portion of its value. As Canada’s market continues changing, vehicle-specific depreciation data, realistic financing decisions, and careful comparisons may become more important than ever.
