Vehicle sales on track for a record-breaking year

CADA reports a 15-per-cent increase in sales in Sask. compared to last year

The automobile industry is alive and thriving in Saskatchewan, according to new data from the Canadian Automobile Dealers Association.

Statistics provided by the association suggest Saskatchewan is in the middle of a record-breaking year, with sales up 15 per cent across the province compared to last year.

Michael Hatch, the association’s chief economist, said Saskatchewan has the highest growth in sales in the country so far this year.

“Fifteen per cent is a huge growth level,” he said.

The numbers are based on the purchasing of new vehicles from dealerships. Hatch said it’s currently a strong period for the automobile industry, which can’t be expected to last forever.

But he also said even if there is no more growth for the rest of the year, he thought it was likely more than two million new vehicles would be sold nationwide in 2017 — a mark that’s never been hit before. About 1.95 million were sold in Canada in 2016, which is the current record.

“Right now, times are good,” Hatch said. “But I think people understand that when times are good they have to prepare for when times are not so good.”

Although it can be difficult to say exactly why Saskatchewan car sales have been growing so rapidly, Hatch credited a strong economy — one less affected by the oil market crash than Alberta — and consumer faith in a product that is steadily improving in terms of quality and longevity.

Hatch also said older generations were more likely to purchase vehicles, and Canadians in their 20s have never been a large part of the new car market because they typically do not have the resources to buy a new vehicle.

New competition has sprung up in recent years for car sales, such as ride-sharing programs like Uber that are becoming increasingly popular in major centres.

Hatch said that it’s “difficult to predict” what the biggest hurdle might be for the automobile industry in the future, but he added he feels confident the industry will be safe going forward because consumers still like going to dealerships for that big purchase.

“The reality remains that a new vehicle purchase or any vehicle purchase is such a significant investment for the consumer,” Hatch said. “If consumers didn’t want or need the dealership experience, then dealers would presumably disappear. But it hasn’t happened yet.”

Right now, times are good. But I think people understand that when times are good they have to prepare for when times are not so good.