Canadian Retention Rates Drop to 57 Percent

A sharp drop in four-year retained values forces commercial fleets and auto dealerships to adjust lease-end exposure and wholesale strategies.

Canadian Black Book has released its 2026 Best Retained Value Awards, revealing that 2023 model year vehicles retained an overall average of 57.0% of their original MSRP after four years. This represents a steep decline from the 67.5% average recorded during the previous year’s study.

For Canadian automotive retailers, commercial fleet operators, and remarketing managers, falling residual values increase lease return liabilities and require tighter inventory management on used car lots. Traditional internal combustion and hybrid powertrains continue to outperform the broader market, with Toyota taking the Overall Mainstream Brand title for the tenth consecutive year behind strong performance from the Corolla, RAV4 Prime, Tacoma, Tundra, and Sienna. Porsche retained the Overall Premium Brand award, anchored by the 911, Panamera E-Hybrid, and Taycan.

While battery-electric vehicles generally trail internal combustion models in four-year value retention, dedicated EV platforms showed selective resilience. Kia earned the Overall Electric Brand award led by the EV6, while the Chevrolet Bolt EV, Porsche Taycan, and Tesla Model X secured top honors in their respective electric segments.