Auto sales record as boomers treat themselves to ‘nice vehicles’
More than 1.9 million vehicles such as SUVs, pickup trucks and high-end models sold in 2015.
TORONTO — Canadians bought vehicles in record numbers last year, driven by consumers, driven by baby boomers who bought SUVs, pickup trucks and high-end models such as Jaguars and Porsches, DesRosiers Automotive Consultants said.
Overall, there were 1,948,000 sales of light vehicles last year, an increase of 2.7% compared to 2015, the Richmond Hill, Ont.-based consulting firm said.
Ford took the top spot last year, with sales up 9.3% to 304,445 vehicles. Fiat Chrysler was next, though its sales slipped by 5.3% year-over-year to 277,445 vehicles, followed by General Motors with 267,341 vehicles sold, up 1.5%.
Some of the most dramatic gains in sales were by luxury automakers, a trend that consulting firm president Dennis DesRosiers attributes to demand from baby boomers with disposable income.
Jaguar saw its sales jump 134.1% to 3,034 in 2016, while Maserati sales grew by 33.5% to 682 vehicles. Porsche sold 7,061 vehicles last year, up 10.1% from 2015.
“Boomers have worked hard all their lives,” DesRosiers said. “They’re retiring in record numbers. The kids are gone, the college costs are gone, the housing costs are paid for and they’re treating themselves to vehicles. Nice vehicles.”
But the era of soaring auto sales – 2015 was also record year – may be coming to an end as interest rates are expected to rise, he said.
“We think that the market has peaked,” DesRosiers said. “Interest rates are likely to go up and most autos are bought with debt.”
Sales of passenger cars declined 7.6% from a year ago to 662,038, while light truck sales were up 8.8 per cent at 1,286,861.
For the month of December, sales decreased 2.6% to 125,600 vehicles, down from 128,920 in December 2015.News from © Canadian Press Enterprises Inc. 2016