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

Drug executives seeking approval for female libido pill previously ran afoul of FDA rules

Drug executives seeking approval for female libido pill previously ran afoul of FDA rules
A small drugmaker from North Carolina may succeed next week where many of the world's largest pharmaceutical companies have failed: in winning approval for the first drug to boost women's sexual desire.

Drug executives seeking approval for female libido pill previously ran afoul of FDA rules

New Zealand PM John Key Hails Indian Diaspora On Independence Day

In his message to the Indian diaspora on the occasion of India's 69th Independence Day, he said: "As prime minister, I value the contributions Indian New Zealanders are making to the overall success of our country."

New Zealand PM John Key Hails Indian Diaspora On Independence Day

CF strikes ISIL in Iraq and Syria as DND slips into silent mode for campaign

CF strikes ISIL in Iraq and Syria as DND slips into silent mode for campaign
OTTAWA — Canadian warplanes have conducted 29 air strikes against Islamic State positions and units, including one in Syria, during the last month.

CF strikes ISIL in Iraq and Syria as DND slips into silent mode for campaign

Indian-American Cousins Convicted Of Murder Conspiracy

Indian-American Cousins Convicted Of Murder Conspiracy
A court in the US has convicted two Indian-American cousins of conspiring to commit murder, a media report said.

Indian-American Cousins Convicted Of Murder Conspiracy

Restaurants Ordered To Cook All Oysters From B.C. As Bacterial Illness Spreads

Restaurants Ordered To Cook All Oysters From B.C. As Bacterial Illness Spreads
Vancouver Coastal Health has asked restaurants to take increased precautions when serving oysters as more illnesses are reported.

Restaurants Ordered To Cook All Oysters From B.C. As Bacterial Illness Spreads

Environmental Groups Begin Testimony Into Whether CSIS Spying Broke The Law

Environmental Groups Begin Testimony Into Whether CSIS Spying Broke The Law
VANCOUVER — A lawyer representing environmental groups alleging they were illegally snooped on by Canada's spy agency can't tell clients about his testimony in a closed-door hearing in Vancouver.

Environmental Groups Begin Testimony Into Whether CSIS Spying Broke The Law