MORE THAN HALF OF CANADIANS SAY OWNING A CAR IS HARDER NOW
THAN FOR THEIR PARENTS' GENERATION
TORONTO, June 27,
2024 /CNW/ - Rising costs of living are
significantly impacting Canadians' perceptions of what they can
afford – including transportation. A recent Léger survey
commissioned by Toyota Canada sheds light on these economic
pressures. These results reveal key shifts in consumer behaviour,
preferences in the automotive market, and the need for automakers
to focus on delivering high value throughout the ownership
lifecycle.
Majority of Canadians delaying or cancelling major
purchases
Fifty-six percent (56%) of Canadians are addressing
affordability concerns by either cancelling or delaying at least
one major purchase. The most affected areas include travel (34%),
personal vehicles (21%), and home renovations (20%). Alberta (66%), Manitoba and Saskatchewan (61%), and British Columbia (58%), report the highest
percentages of delayed purchases.
Age is a factor in delayed or cancelled purchases:
- Ages 18-34: 63% of respondents reported delayed or cancelled
purchases.
- Ages 35-54: 62% of respondents reported delayed or cancelled
purchases.
- Age 55+: 46% of respondents reported delayed or cancelled
purchases.
The types of purchases delayed or cancelled also vary by age
group:
- Ages 18-34: Top categories include travel (40%), personal
vehicles (22%), and home ownership (20%).
- Ages 35-54: Top categories include travel (38%), home
renovations (28%), and personal vehicles (26%).
- Age 55+: 53% reported that they have not delayed or cancelled
any purchases.
Majority of Canadians changing approach to vehicle
ownership
"At a time when Canadians are grappling with financial
pressures, how to best spend their automotive dollars for long-term
value becomes even more important," said Stephen Beatty, Vice President, Corporate,
Toyota Canada." "This decision goes beyond the new car purchase to
consider operating and maintenance costs as well as resale value
down the road."
Fifty-nine percent (59%) of Canadians believe it is less
financially achievable to own a vehicle today compared to their
parents' generation, with over two thirds of British Columbians
feeling the most pressure.
Due to affordability concerns, 66% of respondents reported
changing their approach to vehicle ownership in the past year.
Specifically, they are:
- Delaying the purchase of a new vehicle (31%)
- Opting for a used vehicle instead of purchasing new (27%)
- Among younger drivers aged 18-34, this figure rises to 31%,
compared to 23% for those aged 55 and older.
In light of these findings, it is essential that automakers
focus on affordability throughout the ownership
lifecycle.
"We approach these customer needs with three distinct
strategies: 1.) offer a full line of vehicles, including small
cars; 2.) focus on quality, durability and reliability; and 3.)
make energy efficiency a priority across all of our gas and
electrified powertrains to ensure low operating costs while
reducing our environmental footprint", said Beatty. "That's what
leads to vehicles like the Corolla Hybrid winning a 2024
Vincentric Lowest Cost to Own in Canada award. We're working hard to meet
the needs of our customers for the long haul."
Methodology
Léger, the largest Canadian-owned full-service market research
firm, conducted an online survey with a representative sample of
1,536 Canadian residents. Respondents were randomly selected using
Léger's panel and was completed between June
14-17, 2024.
No margin of error can be associated with a non-probability
sample (i.e. a web panel in this case). For comparative purposes,
though, a probability sample of 1522 respondents would have a
margin of error of ±2.5%, 19 times out of 20.
About Léger
Leger is one of North America's
fastest-growing market research company, known for its
forward-thinking experts, innovative approaches, and having the
most accurate panel (LEO) and insights. As a market leader, the
company combines its decades of experience with the latest
technologies to deliver end-to-end market research, advanced
analytics,
CX, and digital marketing expertise. Leger's mission is to give
people a voice and empower its clients to make better decisions in
a constantly changing world. For more
information: leger360.com
About Toyota Canada Inc.
Toyota Canada Inc. (TCI) is the exclusive Canadian distributor
of Toyota and Lexus vehicles. Toyota has sold over six million
vehicles in Canada through a
national network of 287 Toyota and Lexus dealerships. Toyota is
dedicated to bringing safety, quality, dependability and
reliability to the vehicles Canadians drive and the service they
receive. TCI's head office is in Toronto, with regional offices in Vancouver, Calgary, Montreal and Halifax, and parts distribution centres in
Clarington and Vancouver. Toyota also operates two
manufacturing facilities in Canada. Having produced more than nine million
vehicles, popular Canadian models built at these facilities include
Toyota RAV4, Toyota RAV4 Hybrid, Lexus RX 350 and RX 450h hybrid,
as well as Lexus NX 250, NX 350 and NX 350h hybrid. The company has
sold more than 20 million electrified vehicles worldwide and is the
number one seller of electrified vehicles in Canada.
SOURCE Toyota Canada Inc.