Canadian Black Book’s Used Vehicle Retention Index fell 2.1 points in December 2025, marking the steepest month-over-month decline of the year and signalling a continued cooling in wholesale used values.
The index landed at 133.1 points, down from 135.9 in November. On a year-over-year basis, the index was down 1.9%, according to CBB’s latest update released Jan. 6, 2026.
“Anticipated negative values registered on our index in the past month,” said Daniel Ross, Senior Manager of Industry Insights and Residual Value Strategy at Canadian Black Book, in a statement. He went on to add that December was the “largest month-over-month decrease” in 2025 and a “true sign of the need for a market correction originally initiated way back in 2024 but forced to stall last year.”
“With trade policy again a focus of our market this year, OEMs and dealers alike are seeing less demand in the marketplace. Expectations are for a slowing but less volatile new and used car market,” said Ross.
Softer retention puts pressure on trade-in accuracy and recon assumptions. With demand easing and wholesale values correcting, dealers may need tighter appraisal discipline, shorter holding periods and more conservative pricing strategies to protect gross and avoid aged inventory.
CBB noted the index peaked in March 2022 at 165 points, following a surge in used values that began in late summer 2020, when the Index was as low as 100.5.
The Retention Index is calculated using Canadian Black Book’s published wholesale average values on two- to six-year-old vehicles, measured as a percentage of original typically equipped MSRP. It is weighted by registration volume and adjusted for seasonality, age, mileage and condition.
