Close X
Monday, September 30, 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

113 Feared Dead In Indonesian Military Plane Crash

113 Feared Dead In Indonesian Military Plane Crash
All 113 people on board a Hercules C-130 military cargo aircraft were feared killed when the military plane crashed into a residential area in Medan city on Indonesia's Sumatra island on Tuesday, media reported.

113 Feared Dead In Indonesian Military Plane Crash

Indian Sentenced To 20 Months For Sex With Minor

Indian Sentenced To 20 Months For Sex With Minor
An Indian national in Singapore was on Tuesday sentenced to 20 months' imprisonment for having sex with a minor, a media report said.

Indian Sentenced To 20 Months For Sex With Minor

Russian MP Seeks Measures Against Canada For Sanctions

Russian MP Seeks Measures Against Canada For Sanctions
oscow should adopt measures against Canada in response to Ottawa’s latest move to expand sanctions against Russia, senior Russian lawmaker Alexei Pushkov said on Tuesday.

Russian MP Seeks Measures Against Canada For Sanctions

From Antennas To Swipe Screens, Cellphones Mark 30 Years In Canada

From Antennas To Swipe Screens, Cellphones Mark 30 Years In Canada
It was July 1985 and Surerus says he needed the phone to help run his business as a travelling funeral director out of Peterborough, Ont. The phone attached to an aerial in his car and came with its own carrying bag.

From Antennas To Swipe Screens, Cellphones Mark 30 Years In Canada

Stop Using Islamic State Name, British PM David Cameron Tells BBC

Stop Using Islamic State Name, British PM David Cameron Tells BBC
British Prime Minister David Cameron on Monday called on the BBC not to use the phrase "Islamic State" when referring to the terror group operating in Iraq and Syria.

Stop Using Islamic State Name, British PM David Cameron Tells BBC

Greece Crisis Hits Indian Equity; BSE Sensex Falls 166 Points

Greece Crisis Hits Indian Equity; BSE Sensex Falls 166 Points
A barometer index of the Indian equity markets suffered a massive fall during the day's trade, partially recovered, and yet ended in the red as anxiety grew over the outcome of the Greece debt crisis on Monday.

Greece Crisis Hits Indian Equity; BSE Sensex Falls 166 Points