Close X
Sunday, September 29, 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

New Zealand Students Learn Kathak For Arts Contest

New Zealand Students Learn Kathak For Arts Contest
A group of girl students in New Zealand has learned the Indian classical dance Kathak as part of a wearable arts contest that draws big sponsors from around the country's North Island region

New Zealand Students Learn Kathak For Arts Contest

Slammed Indian Grandfather Sureshbhai Patel Testifies At US Cop's Trial

Sureshbhai Patel, 57, was called to the stand as the trial of former police office Eric Parker, 26, began in a Huntsville, Alabama federal court

Slammed Indian Grandfather Sureshbhai Patel Testifies At US Cop's Trial

Bobby Jindal Blames Republicans For Obama Victory On Iran Deal

Indian-American Republican presidential hopeful Bobby Jindal has blamed his party's lawmakers for getting badly outplayed in their efforts to sink President Barack Obama's nuclear deal with Iran.

Bobby Jindal Blames Republicans For Obama Victory On Iran Deal

US Cop Put On Trial For Slamming Down Indian Grandfather Sureshbhai Patel

US Cop Put On Trial For Slamming Down Indian Grandfather Sureshbhai Patel
Eric Parker, 26, is accused of using excessive force against an unarmed Sureshbhai Patel and charged with violating his civil rights.

US Cop Put On Trial For Slamming Down Indian Grandfather Sureshbhai Patel

Man Fined 500 Pounds For Racial Abuse At Indian Restaurant In Ireland

Man Fined 500 Pounds For Racial Abuse At Indian Restaurant In Ireland
Desmond Bell from Park Avenue, Northern Ireland, who allegedly turned up drunk at Raba restaurant on August 31, became aggressive and started hurling abuses at the staff.

Man Fined 500 Pounds For Racial Abuse At Indian Restaurant In Ireland

RCMP To Charge Syrian Officer In Maher Arar Torture Case, Lawyer Says

RCMP To Charge Syrian Officer In Maher Arar Torture Case, Lawyer Says
Lawyer Paul Champ says while the colonel's whereabouts are unknown, the charges represent the culmination of a decade-long RCMP investigation.

RCMP To Charge Syrian Officer In Maher Arar Torture Case, Lawyer Says