New Car Purchases Expected to Slow in 2017

Scotiabank
Strengthening labour markets will drive global auto sales higher (Source: Scotiabank)

After several years of record vehicle sales in Canada, purchases are expected to edge lower in 2017.

According to the latest Global Auto Report, published by Carlos Gomes, Senior Economist and Auto Industry Specialist, Scotiabank, “global car sales accelerated sharply in the final months of 2016 and gains are expected to continue, albeit more slowly over the coming year, lifting purchases to an eighth consecutive annual record.”

In the United States, increased replacement demand, growing consumer confidence, and attractive financing options are expected to lift sales to a third consecutive annual record.

In Canada, however, Gomes says volumes will be undercut by recent price hikes for new cars and light trucks, as well as lower replacement demand than in the United States. “In population-adjusted terms,” he adds, “volumes are already at the last peak achieved in 2002 and unlikely to increase further.”

Look for a full report in the next issue of AutoJournal.

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