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

Italy's High Court Acquits Fashion Designers Dolce & Gabbana In Tax Evasion Case

Italy's High Court Acquits Fashion Designers Dolce & Gabbana In Tax Evasion Case
MILAN - Italy's highest court has acquitted Domenico Dolce and Stefano Gabbana of tax evasion in a highly publicized case that led the Milan designers to close their Milan stores in protest for several days last year.

Italy's High Court Acquits Fashion Designers Dolce & Gabbana In Tax Evasion Case

Obama Wishes All Happy Diwali And Saal Mubarak

Obama Wishes All Happy Diwali And Saal Mubarak
 President Barack Obama has in video message wished a Happy Diwali and "Saal Mubarak" to all those who celebrate the festival of lights saying it was a reminder that light will ultimately prevail.

Obama Wishes All Happy Diwali And Saal Mubarak

Dog 'wasn't to blame for anything:' Spanish woman who beat Ebola mourns for her slain pet

Dog 'wasn't to blame for anything:' Spanish woman who beat Ebola mourns for her slain pet
MADRID - The husband of the Spanish nursing assistant who beat Ebola says his wife now knows that authorities killed their dog Excalibur while she was in the hospital and is questioning that decision.

Dog 'wasn't to blame for anything:' Spanish woman who beat Ebola mourns for her slain pet

Same-sex marriages now allowed and recognized in Wyoming for first time

Same-sex marriages now allowed and recognized in Wyoming for first time
Attorneys for the state filed notice Tuesday morning that they would not challenge a federal judge's ruling striking down a Wyoming law defining marriage as between a man and a woman.

Same-sex marriages now allowed and recognized in Wyoming for first time

Pistorius given 5-year imprisonment for girlfriend's death

South African Paralympian Oscar Pistorius was Tuesday sentenced by a Pretoria court to five years in jail for the culpable homicide death of his...

Pistorius given 5-year imprisonment for girlfriend's death

New video: IS militants stone woman to death for adultery

New video: IS militants stone woman to death for adultery
Militants of the Islamic State (IS) Sunni radical group released a video Tuesday showing its members stoning a woman to death whom they accused...

New video: IS militants stone woman to death for adultery