Load up on trucks, says DesRosiers

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Continued strong demand for trucks, and the need for Canadians to replace aging vehicles, is good news for dealers, according to Dennis DesRosiers, President of DesRosiers Automotive Consultants.

DesRosiers was the second speaker to address the mostly dealer audience at the sold-out 2018 CADA Summit in Toronto.

DesRosiers said today’s market is all about trucks and the products on display at the Canadian International AutoShow that opens tomorrow will very likely reflect this.

“With the exception of luxury vehicles, the hottest place in the market last year, almost every major segment was down,” said DesRosiers. “The action was on light trucks (with the exception of minivans), so load up on the trucks guys! Talk to your factories. Take every opportunity you can to build your inventory on that side of the marketplace.”

He also said with almost 11 million vehicles over a decade old on Canadian roads, buyers will be replacing those within the next 7-8 years.

“We see no evidence of less ownership, and indeed the opposite is happening,” said DesRosiers, adding that: “The used vehicle front is a supply driven marketplace.”

DesRosiers says that while “all roads lead to electric,” he doesn’t anticipate electric vehicles to be a major factor in the market in the near-term.

Canadians bought more than 2 million vehicles last year for the first time ever, setting a new record for the fifth consecutive year.

The CADA Summit is organized by the Canadian Automobile Dealers Association, and is supported by an exclusive sponsorship with TD Auto Finance.

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