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Black Book Research Reveals Consumer Attitudes

Canadian Black Book, Brian Murphy, vehicle values, projections, new and used, inventory management

Canadian Black Book survey uncovers car buying attitudes from coast to coast.

New research from Canadian Black Book reveals that six in ten of the Canadians surveyed (62%) are likely (29% very likely; 33% somewhat likely) to purchase a car or truck over the next two years. This is an eleven point increase vs. the 51 percent of respondents who answered the same question in January of 2016.

In Quebec, as well as Saskatchewan/Manitoba (combined), the intention to purchase is the lowest at 59%. Ontarians are the most likely at 65%.

The research also shows that that 29% of survey respondents currently hold an auto loan. Quebec drivers hold the most auto loans compared to other regions nationally, at 36%. Ontarians have the least at 25%.

Research also shows that many consumers simply don’t understand how long it takes to pay off a loan. The survey asked Canadians to assume they had bought a new car for $30,000 and had taken out a loan for the purchase at 0% for 96 months. They were then asked how many months it would take before the car would be worth more than the value of the loan remaining. Only two in ten (22%) chose the right answer, which is 48 months.

If fuel prices were to rise $0.25 per litre, four in ten Canadians (43%) say they would consider at least one type of alternative-energy vehicle, with hybrid vehicles (28%) being the most popular choice. Others say they’d consider an electric vehicle (23%), a plug-in hybrid vehicle (17%), or even a hydrogen fuel cell vehicle (10%).

Three in ten (32%) say they’d look at downsizing what they drive to something more fuel-efficient. A further one in ten (10%) Canadians would consider a diesel vehicle, while 12% would think about not replacing their current vehicle at all, relying instead on public transit, walking or pedal power. This leaves three in ten Canadians (30%) who say that a $0.25 hike in gas prices wouldn’t affect their next vehicle purchase decision at all.

Quebec is just under the national average at 31% of its respondents suggesting they would consider less gas thirsty option, if fuel prices rise.  However, they are the least likely nationally to have interest in a diesel, at only 6%.

“Our relatively inexpensive fuel prices today, may not last as long as we would like,” says Brian Murphy, VP Editorial & Research, Canadian Black Book. “This inescapable increase in operating costs, will change perceptions, needs and demands on the OEMs.”

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