A little more than 50 per cent of Canadian consumers are likely to buy a new vehicle over the next 24 months — less than 11 per cent compared to the previous year, according to research from Canadian Black Book.
“Quite frankly, after such a dramatic ascent in sales over the past couple of years, this makes sense. It would be hard for us to continue breaking sales records throughout 2018 and beyond,” says Brad Rome, President, Canadian Black Book.
The information is based on a poll designed by Canadian Black Book, and conducted nationally by Ipsos, to better understand consumer car buying habits, knowledge and trends. The poll suggests that “recent forecasts of diminishing auto sales are looming,” according to the news release. It also points to which car buyers are more inclined to buy.
For example, younger consumers lean more heavily towards purchasing a new car over the next two years, with those aged 18-34 the most likely at 65 per cent, along with respondents aged 35-54 (at 57 per cent). The 55-plus group are less likely to buy a new car within a 24-month period as only 34 per cent of those surveyed were interested.
Younger buyers are also more likely to buy a car online with 36 per cent of those aged 18-34 considering doing so, compared to only 11 per cent of respondents aged 55 and over. Among the sexes, men (58 per cent) showed more eagerness to buy in two years compared to 44 per cent of women surveyed.
“We are not surprised to see that Millennials are over three times more likely to purchase a vehicle online compared to boomers,” said Brian Murphy, Vice President of Research and Editorial, Canadian Black Book. “This would be a major shift in automotive retailing, and one that is similar to how Millennials research, shop for and purchase so many of their goods today,” he added.
Overall, the survey shows that more than a quarter (27 per cent) of Canadians are likely to consider buying a vehicle fully online, which means they would not step foot into a dealership. And 57 per cent of consumers, nationally, plan to purchase new instead of used.