Legislation could speed sale of new cars in 2016
With the start of a new year, I thought I’d take this opportunity to share some predictions about the auto industry in 2016.
Here they are, in no particular order:
Despite stiffer penalties and the potential loss of demerit points, distracted driving is still the No. 1 cause of death on our roads. I think that all stakeholders (police, government agencies, automobile associations, consumer groups) will continue to spread the word about the dangers of this type of driving offence in 2016. The Trillium Automobile Dealers Association is a strong advocate for safe driving, and our association will continue to use all of its platforms and resources to urge drivers to put their mobile phones down while driving.
Mobile devices will continue to play a key role in the car buying process. Last year, Autotrader.com’s reported the results of a survey that found 39 per cent of new car buyers used a smartphone for vehicle shopping, up from 19 per cent in 2013. The report also revealed that more car buyers were using multiple devices to shop for cars: 42 per cent in 2014 versus 24 per cent a year earlier.
Auto Shows will continue to draw the best of the best from automakers and suppliers from around the world. In particular, the 2016 Canadian International AutoShow is shaping up to be another stellar event, with plenty of exciting new vehicle unveilings, features and exhibits.
Despite the wealth of online resources about automobiles, con- sumers still rely on new car dealerships for the most information when buying a car. That observation was borne out in a study by MaritzCX, which found that “dealers, friends, family and consumer guides were the most trusted sources of information.” (Detroit News).
In recent years, there has been a major shift in consumer car buying tastes. Partly as a result of lower gas prices and better fuel efficiency for larger vehicles, consumers have been buying more CUVs, SUVs and pickup trucks. All signs indicate that this shift toward larger vehicles will continue in 2016, especially if gas prices remain low.
Expect to see more electric vehicle charging stations throughout Ontario in 2016. Many new car dealerships have already installed electric vehicle charging stations at their facilities, and Premier Kathleen Wynne recently announced a $20million investment toward the installation of electric vehicle charging stations in and around large urban centres. Also, expect a slow and steady increase in the number of electric cars sold in Canada this year.
TADA will continue to work closely with its post-secondary school partners in promoting education and awareness about careers within the retail automobile industry. The launch of TADA’s website carsandjobs.com will continue to be a resource for students who want to learn more about automotive careers, and for dealers looking to recruit qualified people.
Private member’s Bill 152, the Cutting Red Tape for Motor Vehicle Dealers Act, could become law in 2016. It will positively impact new car dealers and car buyers across the province. If passed, the act will give dealers the option of registering vehicles (and issuing licence plates) at the dealership, without having to visit a licensing office. Consumers would not encounter a delay in taking delivery of their vehicle.
On behalf of TADA, wishing everyone a safe, happy and prosperous new year! This column represents the views of TADA. Write president@tada.ca or go to http://www.tada.ca. Doug Sullivan is president of the Trillium Automobile Dealers Association. He is a new-car dealer in Huntsville, Ont.