Table of Contents
Overview
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- What you need to know
- Definitions
Executive Summary
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- The issues
- Women are more likely to cite expensive repairs
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- Figure 1: Reasons for vehicle purchase intent, men vs women, February 2017
- Online reviews can influence choice, especially among younger consumers
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- Figure 2: Online-related attitudes towards the car purchasing process (any agree), February 2017
- Dealerships can be intimidating
- The opportunities
- SUVs and sedans top the list
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- Figure 3: Top five types of vehicles considered, February 2017
- Men are more likely to buy a new vehicle while more women are unsure
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- Figure 4: Kind of purchase, by gender, February 2017
- Most consumers are performing research to get a deal
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- Figure 5: Research-related attitudes towards the car purchasing process, any agree, February 2017
- What it means
The Market – What You Need to Know
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- Demographic shifts are a positive for auto sales
- Low interest rates make it easier to purchase a new vehicle
- Gas prices may have some reconsidering type of vehicle
- Increasing living costs will affect discretionary spending
Market Factors
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- Demographic shifts in Canada likely to bode well for auto sales
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- Figure 6: Projected trends in the age structure of the Canada population, 2014-19
- Figure 7: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
- Low interest rates continue to make it easy to buy a new vehicle
- Gasoline prices may cause a rethink on vehicle type
- Rising living costs will affect discretionary spending
Key Players – What You Need to Know
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- SUVs and crossovers are all the rage
- Discounts and incentives
- New vehicle sales continue to see growth
- Repairs can be expensive
- Challenging the franchise dealership model
Marketing and Advertising
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- SUVs and crossovers are all the rage
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- Figure 8: Cardinal Kia, direct mail, February 2017
- Figure 9: Dale Downie Nissan, direct mail, January 2017
- Discounts and incentives
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- Figure 10: FCA Canada, Jeep, acquisition e-mail, January 2017
- Figure 11: Volkswagen centre of Saskatoon, direct mail, March 2017
- Figure 12: Northland Chrysler Dodge, direct mail, March 2017
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- Figure 13: Derrick Dodge, direct mail, January 2017
- Interest rates still remain low
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- Figure 14: Northland Chrysler Dodge, direct mail, March 2017
- Figure 15: Winnipeg pre-owned supercentre, direct mail, January 2017
What’s Working?
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- New vehicle sales continue to see growth
- The popularity of SUVs and crossovers is evident
What’s Struggling?
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- Repairs can be expensive
- Recalls continue to emerge at an alarming rate
What’s Next?
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- Challenging the franchise dealership model
- Bringing the showroom directly to the consumer
- Price comparison services
The Consumer – What You Need to Know
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- The majority of consumers plan on purchasing a vehicle in the next three years
- Most are considering an SUV or sedan
- Most are considering a new vehicle
- Mileage of vehicle is a key purchase motivator
- A test drive still remains critical in the car purchasing process
- Performing research and comparing dealership incentives is important
Vehicle Purchase Plan
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- Most plan on purchasing a vehicle within the next three years
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- Figure 16: Vehicle purchase plan, February 2017
- Almost half of consumers spent between $20-40K on their last vehicle
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- Figure 17: Cost of most recent vehicle purchase, February 2017
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- Figure 18: Cost of most recent vehicle purchase, by age, February 2017
Types of Vehicles Considered
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- SUVs and sedans top the list
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- Figure 19: Types of vehicles considered, February 2017
- Most consumers are considering buying a new vehicle
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- Figure 20: Kind of purchase, February 2017
- Men are pulled towards new cars while more women are unsure
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- Figure 21: Kind of purchase, by gender, February 2017
Reasons for Vehicle Purchase Intent
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- Mileage of vehicle is a key purchase motivator
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- Figure 22: Reasons for vehicle purchase intent, February 2017
- Men want new tech whereas women cite expensive repairs
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- Figure 23: Reasons for vehicle purchase intent, men vs women, February 2017
- High mileage an obvious purchase motivator among older consumers
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- Figure 24: Reasons for vehicle purchase intent, 18-44s vs over-45s, February 2017
- Most do not have plans to buy since their vehicles are running well
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- Figure 25: Reasons for not planning on purchasing a vehicle, February 2017
Research and Resources
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- The good old test drive still remains key in the car purchasing process
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- Figure 26: Research and resources planned to be used, February 2017
- Younger consumers biased towards specific online resources
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- Figure 27: Online and mobile resources planned to be used, 18-44s vs over-45s, February 2017
Attitudes towards the Car Purchasing Process
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- Performing research and comparing dealership incentives are critical
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- Figure 28: Research-related attitudes towards the car purchasing process (any agree), February 2017
- Trust is key
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- Figure 29: Trust-related attitudes towards the car purchasing process, February 2017
- Online reviews can influence consumer choice
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- Figure 30: Online-related attitudes towards the car purchasing process, February 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
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