Close X
Sunday, November 17, 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

Mississauga Pastor Rev. Hyeon Soo Lim Detained In North Korea 'Admits' To 'Subversive Plots'

Mississauga Pastor Rev. Hyeon Soo Lim Detained In North Korea 'Admits' To 'Subversive Plots'
MISSISSAUGA, Ont. — A South Korean news agency is reporting that an Ontario pastor detained in North Korea has confessed to "subversive plots" against the Communist state during a televised news conference.

Mississauga Pastor Rev. Hyeon Soo Lim Detained In North Korea 'Admits' To 'Subversive Plots'

Four Indians Abducted In Libya By Islamic State, Two Are Released

Four Indians Abducted In Libya By Islamic State, Two Are Released
our Indian nationals were abducted in Sirte in Libya where the Islamic State group holds sway. Two men were released on Friday

Four Indians Abducted In Libya By Islamic State, Two Are Released

3 Years On: Sikhs To Commemorate 2012 Wisconsin Gurdwara Shooting

3 Years On: Sikhs To Commemorate 2012 Wisconsin Gurdwara Shooting
A Sikh organisation will observe the annual day of seva (service) in 14 US cities on August 1 in the memory of those who were killed in the 2012 Wisconsin Sikh temple shooting.

3 Years On: Sikhs To Commemorate 2012 Wisconsin Gurdwara Shooting

Police Arrest Suspect In Series Of Vancouver Island Break And Enters

Police Arrest Suspect In Series Of Vancouver Island Break And Enters
NANAIMO, B.C. — Police have arrested a man believed to be responsible for a number of break-ins and thefts on Vancouver Island.

Police Arrest Suspect In Series Of Vancouver Island Break And Enters

Woman Sues Washington D.C. Police Alleging Discrimination Because She Is Canadian

Woman Sues Washington D.C. Police Alleging Discrimination Because She Is Canadian
Laurie Samuel has filed a lawsuit against the Metropolitan Police Department (MPD) in Washington D.C., where she worked from 2006 to 2013.

Woman Sues Washington D.C. Police Alleging Discrimination Because She Is Canadian

How Indian Nationals Are Becoming Victims Of Phone Scam In New Zealand

How Indian Nationals Are Becoming Victims Of Phone Scam In New Zealand
The scammers threaten people, mostly Indian nationals, with serious consequences, including deportation, if the money is not deposited in the account.

How Indian Nationals Are Becoming Victims Of Phone Scam In New Zealand