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

10 Killed In Two Accidents In Punjab

10 Killed In Two Accidents In Punjab
At least 10 people were killed in two separate accidents in Punjab on Monday, police said.

10 Killed In Two Accidents In Punjab

Obamas Seek Better WiFi Service In Whitehouse For Next First Couple

Obamas Seek Better WiFi Service In Whitehouse For Next First Couple
WASHINGTON — President Barack Obama says one improvement he'd like to make at the White House for his successor is to upgrade the WiFi system.

Obamas Seek Better WiFi Service In Whitehouse For Next First Couple

Sikh Actor And Model Waris Ahluwalia Denied Entry Inside Plane Because Of His Turban

Sikh Actor And Model Waris Ahluwalia Denied Entry Inside Plane Because Of His Turban
The Amritsar born actor posted a picture of himself on Instagram.

Sikh Actor And Model Waris Ahluwalia Denied Entry Inside Plane Because Of His Turban

Donald Trump Backs Controversial ‘Waterboarding’ Of Terrorists

Trump in an interview asserted that such harsh techniques would be a very good tool against terrorists

Donald Trump Backs Controversial ‘Waterboarding’ Of Terrorists

Bollywood, Ontario Film Industries To Work Together: Kathleen Wynne

Bollywood, Ontario Film Industries To Work Together: Kathleen Wynne
Kathleen Wynne, Premier of Ontario, Canada, attended the high profile Bollywood style event in Mumbai where two new agreements were announced that will benefit India's film industry.

Bollywood, Ontario Film Industries To Work Together: Kathleen Wynne

Hafiz Saeed Accuses Nawaz Sharif Of Being Soft On India

It was Hafiz Saeed's first major public appearance in the capital after three years, showing defiance towards government.

Hafiz Saeed Accuses Nawaz Sharif Of Being Soft On India