Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Car Purchasing Process - Canada - May 2017

"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."
- Andrew Zmijak, Research Analyst

This Report discusses the following key topics:

  • Women are more likely to cite expensive repairs 
  • Online reviews can influence choice, especially among younger consumers 
  • Dealerships can be intimidating

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. 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

                                                                          Companies Covered

                                                                          To learn more about the companies covered in this report please contact us.

                                                                          Car Purchasing Process - Canada - May 2017

                                                                          US $3,995.00 (Excl.Tax)