Close X
Wednesday, September 25, 2024
ADVT 
International

Auto Sales On Pace For Record, Driven By Popularity Of Light Trucks

Darpan News Desk The Canadian Press, 04 Jul, 2016 01:13 PM
  • Auto Sales On Pace For Record, Driven By Popularity Of Light Trucks
TORONTO — At least once a week, 76-year-old Ken Dacko makes the 200-kilometre round trip from his home in Alma, Ont., to the factory in Brampton, Ont., where he works.
 
Earlier this year, Dacko purchased a 2016 Jeep Wrangler. He says driving a brand-new vehicle that's reliable and guaranteed to start gives him peace of mind.
 
"Four-wheel drive is important for the winter time because I leave for work around three-thirty, four o'clock in the morning, and sometimes the roads this far north are not plowed," he says.
 
Dacko is one of thousands of Canadians snapping up new vehicles in droves, despite concerns about the economy and mounting consumer debt.
 
DesRosiers Automotive Consultants is expected to release figures later Monday showing how auto sales have fared for the first six months of the year.
 
The market research firm said last month that May sales dipped slightly from a year ago, but on a year-to-date basis they were still up 5.6 per cent, putting Canada on track for another record-breaking year.
 
Experts say cheap credit and economic strength in Ontario, British Columbia and to some extent Quebec are helping drive sales.
 
"Interest rates are incredibly low, and as we all know, vehicles are one of the big purchases in people's lives," says Charlotte Yates, an automotive industry expert and vice-president academic at the University of Guelph.
 
In recent years, consumers have been gravitating away from passenger cars and towards light trucks, a category that includes pickups, SUVs, minivans and crossovers. So far this year, that trend has continued.
 
Automotive analyst Dennis DesRosiers says crossovers have become especially popular in recent years, displacing the minivan as the family vehicle of choice.
 
"They fit everything, so the boomer has a vehicle that they can load up with their sports equipment and head out to the beach, and grandma and grandpa that are babysitting have a vehicle that they can put the kids in," DesRosiers says.
 
Their height also makes them convenient for people who may have mobility issues.
 
"They're much easier to get into and out of as opposed to a small sedan," says Scotiabank economist Carlos Gomes.
 
Yates says the relationship that Canadians have to the outdoors is another reason why sales of light trucks have been on fire.
 
"I do think there is a kind of iconic culture around the SUV, the crossover, the truck," says Yates. 
 
"We live a paradoxical existence. More and more of us live in cities, but we still have the myth that we need the four-wheel drive because we're going to the country. ... It's about expressing a kind of lifestyle choice, and I think that it's been very, very powerful."

MORE International ARTICLES

US Pilot Finds Appearance Of Sikh, Three Muslims Uneasy, Kicks Them Off Flight

US Pilot Finds Appearance Of Sikh, Three Muslims Uneasy, Kicks Them Off Flight
When they asked the flight crew why they were being removed, the flight attendant told them to exit "peacefully" and "demanded" they return to the gate and await further directions

US Pilot Finds Appearance Of Sikh, Three Muslims Uneasy, Kicks Them Off Flight

Pakistan Urges UNSC To Implement Its Resolutions On Kashmir

Pakistan Urges UNSC To Implement Its Resolutions On Kashmir
Pakistan has expressed confidence that the UN Security Council will deliver on its pledge to hold a plebiscite in Kashmir.

Pakistan Urges UNSC To Implement Its Resolutions On Kashmir

US Policies Responsible For Regional Instability: Sartaj Aziz

US Policies Responsible For Regional Instability: Sartaj Aziz
United States' policies are responsible for instability in south Asia, said Sartaj Aziz, foreign affairs advisor here on Monday, urging the Obama administration to analyse its role - and that of its allies - in the region.

US Policies Responsible For Regional Instability: Sartaj Aziz

Burkina Faso Attack Not First Time Canadians Have Faced African Al-Qaeda Terror

Burkina Faso Attack Not First Time Canadians Have Faced African Al-Qaeda Terror
OTTAWA — Even though they are responsible for a string of atrocities and affiliated with the grand daddy of terrorist groups, al-Qaeda in the Islamic Maghreb has flown largely under the radar in terms of public perception of extremists.

Burkina Faso Attack Not First Time Canadians Have Faced African Al-Qaeda Terror

Race Tightens: Hillary Clinton And Bernie Sanders Clash On Guns, Health Care

Race Tightens: Hillary Clinton And Bernie Sanders Clash On Guns, Health Care
Presidential candidates Hillary Clinton and Bernie Sanders tangled in a Democratic Party presidential debate over who is tougher on gun control and Wall Street and how to steer the future of health care in America.

Race Tightens: Hillary Clinton And Bernie Sanders Clash On Guns, Health Care

Canadian Man Detained In U.A.E. Without Charge To Stand Trial On Monday

Canadian Man Detained In U.A.E. Without Charge To Stand Trial On Monday
Salim Alaradi, a 46-year-old Canadian of Libyan origin, was running a business in Dubai when he was abruptly arrested in August 2014.

Canadian Man Detained In U.A.E. Without Charge To Stand Trial On Monday