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

Canadian Diplomat, Teen Son Anxiously Await Bail Decision In Miami Killings

Canadian Diplomat, Teen Son Anxiously Await Bail Decision In Miami Killings
Canada's consul general to Miami finds out Wednesday if she can take her 15-year-old son home while he awaits trial on felony murder and other charges related to a shooting that left her other son dead.

Canadian Diplomat, Teen Son Anxiously Await Bail Decision In Miami Killings

Taslima Nasreen Relocated To Us After Death Threats

Taslima Nasreen Relocated To Us After Death Threats
A New York-based think tank has relocated controversial Bangladeshi writer Taslima Nasreen to "safety" in the US amid death threats from Islamist radicals, according to a press release.

Taslima Nasreen Relocated To Us After Death Threats

Malaysian Indian Barber Surjeet Singh, 30, Dies In Fight With Pakistani

Malaysian Indian Barber Surjeet Singh, 30, Dies In Fight With Pakistani
A Malaysian Indian barber died when he fell on broken glass during a fight with a Pakistani in Malaysia on Tuesday, media reported.

Malaysian Indian Barber Surjeet Singh, 30, Dies In Fight With Pakistani

Indian-Australian Student Wins Apple Conference Scholarship

Indian-Australian Student Wins Apple Conference Scholarship
Class 10 students Deepan Kumar, Ben Maliel and Christopher Seidl from Canberra Boys Grammar School won the scholarship by submitting their own coded iOS application, reported Canberra Times. 

Indian-Australian Student Wins Apple Conference Scholarship

Uber Driver Arrested For Molesting Passenger In Delhi, Gets Bail

Uber Driver Arrested For Molesting Passenger In Delhi, Gets Bail
A 40-year-old driver of cab service provider Uber was arrested here on Tuesday for allegedly molesting a woman passenger. He later got bail from a district court here.

Uber Driver Arrested For Molesting Passenger In Delhi, Gets Bail

Indian-origin ex-German MP Sebastian Edathy suspended from party

Indian-origin ex-German MP Sebastian Edathy suspended from party
A former Indian-origin German parliamentarian caught with downloaded child porn has been suspended for three years by his Social Democrats Party (spd), media reported on Tuesday.

Indian-origin ex-German MP Sebastian Edathy suspended from party