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Car Purchasing Process - Canada - May 2017

Published By :

Mintel

Published Date : Jun 2017

Category :

Automotive Aftermarket

No. of Pages : N/A

While the test drive remains key in the car buying process, many are turning to online research and resources to compare things such as pricing, dealership incentives and gas mileage. Consumers are also going online to peruse professional vehicle reviews, dealership reviews and to view owners’ experiences.

Table of Content

OVERVIEW
What you need to know
Definitions

EXECUTIVE SUMMARY
The issues
Women are more likely to cite expensive repairs
Figure 1: Reasons for vehicle purchase intent, men vs women, February 2017
Online reviews can influence choice, especially among younger consumers
Figure 2: Online-related attitudes towards the car purchasing process (any agree), February 2017
Dealerships can be intimidating
The opportunities
SUVs and sedans top the list
Figure 3: Top five types of vehicles considered, February 2017
Men are more likely to buy a new vehicle while more women are unsure
Figure 4: Kind of purchase, by gender, February 2017
Most consumers are performing research to get a deal
Figure 5: Research-related attitudes towards the car purchasing process, any agree, February 2017
What it means

THE MARKET – WHAT YOU NEED TO KNOW
Demographic shifts are a positive for auto sales
Low interest rates make it easier to purchase a new vehicle
Gas prices may have some reconsidering type of vehicle
Increasing living costs will affect discretionary spending

MARKET FACTORS
Demographic shifts in Canada likely to bode well for auto sales
Figure 6: Projected trends in the age structure of the Canada population, 2014-19
Figure 7: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
Low interest rates continue to make it easy to buy a new vehicle
Gasoline prices may cause a rethink on vehicle type
Rising living costs will affect discretionary spending

KEY PLAYERS – WHAT YOU NEED TO KNOW
SUVs and crossovers are all the rage
Discounts and incentives
New vehicle sales continue to see growth
Repairs can be expensive
Challenging the franchise dealership model

MARKETING AND ADVERTISING
SUVs and crossovers are all the rage
Figure 8: Cardinal Kia, direct mail, February 2017
Figure 9: Dale Downie Nissan, direct mail, January 2017
Discounts and incentives
Figure 10: FCA Canada, Jeep, acquisition e-mail, January 2017
Figure 11: Volkswagen centre of Saskatoon, direct mail, March 2017
Figure 12: Northland Chrysler Dodge, direct mail, March 2017
Figure 13: Derrick Dodge, direct mail, January 2017
Interest rates still remain low
Figure 14: Northland Chrysler Dodge, direct mail, March 2017
Figure 15: Winnipeg pre-owned supercentre, direct mail, January 2017

WHAT’S WORKING?
New vehicle sales continue to see growth
The popularity of SUVs and crossovers is evident

WHAT’S STRUGGLING?
Repairs can be expensive
Recalls continue to emerge at an alarming rate

WHAT’S NEXT?
Challenging the franchise dealership model
Bringing the showroom directly to the consumer
Price comparison services

THE CONSUMER – WHAT YOU NEED TO KNOW
The majority of consumers plan on purchasing a vehicle in the next three years
Most are considering an SUV or sedan
Most are considering a new vehicle
Mileage of vehicle is a key purchase motivator
A test drive still remains critical in the car purchasing process
Performing research and comparing dealership incentives is important

VEHICLE PURCHASE PLAN
Most plan on purchasing a vehicle within the next three years
Figure 16: Vehicle purchase plan, February 2017
Almost half of consumers spent between $20-40K on their last vehicle
Figure 17: Cost of most recent vehicle purchase, February 2017
Figure 18: Cost of most recent vehicle purchase, by age, February 2017

TYPES OF VEHICLES CONSIDERED
SUVs and sedans top the list
Figure 19: Types of vehicles considered, February 2017
Most consumers are considering buying a new vehicle
Figure 20: Kind of purchase, February 2017
Men are pulled towards new cars while more women are unsure
Figure 21: Kind of purchase, by gender, February 2017

REASONS FOR VEHICLE PURCHASE INTENT
Mileage of vehicle is a key purchase motivator
Figure 22: Reasons for vehicle purchase intent, February 2017
Men want new tech whereas women cite expensive repairs
Figure 23: Reasons for vehicle purchase intent, men vs women, February 2017
High mileage an obvious purchase motivator among older consumers
Figure 24: Reasons for vehicle purchase intent, 18-44s vs over-45s, February 2017
Most do not have plans to buy since their vehicles are running well
Figure 25: Reasons for not planning on purchasing a vehicle, February 2017

RESEARCH AND RESOURCES
The good old test drive still remains key in the car purchasing process
Figure 26: Research and resources planned to be used, February 2017
Younger consumers biased towards specific online resources
Figure 27: Online and mobile resources planned to be used, 18-44s vs over-45s, February 2017

ATTITUDES TOWARDS THE CAR PURCHASING PROCESS
Performing research and comparing dealership incentives are critical
Figure 28: Research-related attitudes towards the car purchasing process (any agree), February 2017
Trust is key
Figure 29: Trust-related attitudes towards the car purchasing process, February 2017
Online reviews can influence consumer choice
Figure 30: Online-related attitudes towards the car purchasing process, February 2017

APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations

List of Table

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