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

Pistorius prosecutors to appeal verdict, sentence

Pistorius prosecutors to appeal verdict, sentence
South African prosecutors involved in the Oscar Pistorius case will appeal the verdict and sentence on the double-amputee Olympic athlete's...

Pistorius prosecutors to appeal verdict, sentence

Pakistanis protest India's 'occupation' in Kashmir

Pakistanis protest India's 'occupation' in Kashmir
Pakistanis held demonstrations to mark the anniversary of what they termed as India's invasion and occupation of Kashmir Oct 27, 1947, media reported Tuesday....

Pakistanis protest India's 'occupation' in Kashmir

US announces new guidelines for returning Ebola workers

US announces new guidelines for returning Ebola workers
The US government has announced new monitoring guidelines for people who have been exposed to the Ebola virus disease in an attempt...

US announces new guidelines for returning Ebola workers

UN chief voices concern over Ebola-related restrictions

UN chief voices concern over Ebola-related restrictions
UN Secretary-General Ban Ki-moon has expressed concern about restrictions imposed by several countries and localities on travelers from...

UN chief voices concern over Ebola-related restrictions

US school shooter called his victims to lunch

US school shooter called his victims to lunch
The high school student who shot dead two of his schoolmates and wounded three others last week at a school in Washington state...

US school shooter called his victims to lunch

March planned to mark a month of protests in Hong Kong

March planned to mark a month of protests in Hong Kong
Student federations, Occupy Central movement activists and other organisations involved in the pro-democracy protests in Hong Kong have...

March planned to mark a month of protests in Hong Kong