Close X
Tuesday, September 24, 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

The West Should Have Left Taliban Alone And Just Hit Al-Qaida: Former Commander

The West Should Have Left Taliban Alone And Just Hit Al-Qaida: Former Commander
Retired major-general Dave Fraser commanded both the Canadian task force and the military alliance's expanded mission to extend the authority of former Afghan president Hamid Karzai beyond the capital of Kabul in 2006

The West Should Have Left Taliban Alone And Just Hit Al-Qaida: Former Commander

Melinda Gates Wants Liberal Men To Follow McKenna's Work-life Example

Philanthropist Melinda Gates says she wants to see male Liberal cabinet ministers follow Environment Minister Catherine McKenna's example by booking a few hours of early evening time exclusively for their families.

Melinda Gates Wants Liberal Men To Follow McKenna's Work-life Example

London Hospital Admits Nurse Who Recovered From Ebola Twice

London Hospital Admits Nurse Who Recovered From Ebola Twice
London's Royal Free Hospital has admitted a Scottish nurse who has already recovered from Ebola twice before for another "late complication" from her last infection with the lethal virus.

London Hospital Admits Nurse Who Recovered From Ebola Twice

US Accuses Apple Of 'repudiating' Order On Phone Access

US Accuses Apple Of 'repudiating' Order On Phone Access
The Justice Department is firing back at Apple for refusing to help unlock a phone used by one of the gunmen in the San Bernardino attack.

US Accuses Apple Of 'repudiating' Order On Phone Access

Amar Singh, Indian-Origin Sikh Appointed Kuala Lumpur Police Chief

Amar Singh, Indian-Origin Sikh Appointed Kuala Lumpur Police Chief
The highest police rank previously achieved by a Sikh was senior assistant commissioner-I when Santokh Singh became police chief of Selangor state.

Amar Singh, Indian-Origin Sikh Appointed Kuala Lumpur Police Chief

Chilling Video Shows Syrian Father Helps 15-Year-Old Son Blow Himself Up, Videotapes It

Chilling Video Shows Syrian Father Helps 15-Year-Old Son Blow Himself Up, Videotapes It
The London-based NGO said the child -- nicknamed Abu Amarah al-Omari -- blew himself up with a car bomb at al-Sakhur area.

Chilling Video Shows Syrian Father Helps 15-Year-Old Son Blow Himself Up, Videotapes It