Close X
Friday, October 4, 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

Many Indian-Americans score victories in states

Many Indian-Americans score victories in states
As South Carolina's Indian American Governor Nikki Haley and California's Indian-American-African Attorney General Kamala Harris handily won their...

Many Indian-Americans score victories in states

Shocking:UN lacks resources to fight Ebola

Shocking:UN lacks resources to fight Ebola
Senior UN System Coordinator for Ebola in West Africa, Tony Banbury said Thursday that the international organisation does not have the resources necessary to combat the deadly...

Shocking:UN lacks resources to fight Ebola

Indian-American law student is among US youngest lawmakers

Indian-American law student is among US youngest lawmakers
At 23, Indian-American law student Niraj Antani, a Republican, will be one of America's youngest lawmakers after being elected to the state House in Ohio in the mid-term elections....

Indian-American law student is among US youngest lawmakers

US Army approves use of 'Negro' for black people

US Army approves use of 'Negro' for black people
The word 'Negro' has been used in a recently-published US Army handbook as an approved term to classify African-Americans, media reports said Thursday....

US Army approves use of 'Negro' for black people

Imran Khan urges SC probe into poll rigging

Imran Khan urges SC probe into poll rigging
Pakistan Tehreek-i-Insaf (PTI) chief Imran Khan has once again urged the Supreme Court to intervene in his case against the government...

Imran Khan urges SC probe into poll rigging

White House wants extra anti-Ebola funding

White House wants extra anti-Ebola funding
The US federal government will ask Congress for 6.18 billion dollars in additional funding to fight Ebola, dwarfing previous requests, the...

White House wants extra anti-Ebola funding