Advantageous financing terms and new vehicles boasting the latest in technological innovation helped fuel Canadian auto sales to record levels last year, says a new report.
And 2014 is shaping up to be another solid year, according to BMO Economics.
Preliminary figures indicate that Canada’s auto industry saw light vehicle sales jump to 1.74 million units sold in 2013, up 4% from 1.68 million in the previous year and 10% from 1.59 million in 2011.
Sales in 2014 are expected to slip to about 1.71 million units, which would represent the third best performance on record, says the report.
The auto industry’s continued investments are providing a boost to growth with technological advancements and improved fuel economy across all segments – from compact cars to full-size pickups, – says BMO Economics.
Auto loans have experienced a boom, with Canadian automotive loan balances soaring 165% since 2009, versus 35% for total consumer loans.
Also helping give a lift to sales has been a rebound in the leasing market, which dropped to below 10% from nearly 50%of all auto sales as a result of the financial crisis. Leasing now accounts for more than 20% of sales, says the report.
It adds strong competition among manufacturers is making for redesigned vehicles with more amenities, increased performance and value compared with previous generations.
