Close X
Thursday, October 3, 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

Obama condemns attack on Jerusalem synagogue

Obama condemns attack on Jerusalem synagogue
US President Barack Obama Tuesday condemned the attack on a synagogue in Jerusalem that left four people dead, calling for joint efforts to ease tensions....

Obama condemns attack on Jerusalem synagogue

Indian woman gets life term for killing minor in Dubai

Indian woman gets life term for killing minor in Dubai
A 30-year old Indian nanny was sentenced to life by the Dubai Court of First Instance for killing an 11-month old British baby girl in January....

Indian woman gets life term for killing minor in Dubai

IS executed 1,434 people in Syria since 'Caliphate' proclaimed

IS executed 1,434 people in Syria since 'Caliphate' proclaimed
The Islamic State (IS) Sunni radical group has executed at least 1,434 people in Syria since it proclaimed an Islamic Caliphate over the territory it controls...

IS executed 1,434 people in Syria since 'Caliphate' proclaimed

Putin, the 'bad guy' in global diplomacy

Putin, the 'bad guy' in global diplomacy
At every summit, Russian President Vladimir Putin plays the role of the "bad guy", whether he offers a shawl to the Chinese first lady or decides to skip...

Putin, the 'bad guy' in global diplomacy

India, Australia should cooperate in maritime security: Modi

India, Australia should cooperate in maritime security: Modi
In a historic speech in the Australian parliament, Prime Minister Narendra Modi Tuesday termed Australia a major partner of India in "every area of our national priority...

India, Australia should cooperate in maritime security: Modi

Recovery of MH17 wreckage to be completed in five days

Recovery of MH17 wreckage to be completed in five days
The recovery of the wreckage Malaysia Airlines flight MH17 will be completed in around five days, the Dutch Safety Board, leading the investigation into the...

Recovery of MH17 wreckage to be completed in five days