07:09 AM EDT, 07/05/2024 (MT Newswires) -- All good things must come to an end, as they say, and it appears that was the case for Canadian new vehicle sales in June, noted Bank of Montreal (BMO).

Purchases fell one month short of completing a run of 20 consecutive months of year-over-year gains, as they were flat compared with a year ago, said the bank.

However, it might be worth adding an asterisk to the month if things pick back up in July, as the cyberattack on CDK Global also likely held back some sales in Canada, pointed out BMO.

Zooming out on the broader performance of the sector, year-to-date sales are up over 10% compared with 2023. Stronger inventories alongside better incentives are helping to maintain sales momentum, but it's clear that elevated financing costs are holding back activity when compared with pre-pandemic sales volumes.

Canadian new vehicle sales may also see a slight bounce back in July like the bank is anticipating in the United States, but interest

rates will have to fall further to bring volumes back in line with their pre-pandemic trend, according to BMO.