For Immediate Release
Canadian Black Book Annual Research Reveals Changing Demographics and Behavior of Car Buyers
New Services Taking Hold as Over a Quarter of Young Drivers Rely on Car Sharing and 3 in 10 Canadians Would Buy Completely Online
Markham, ON, April 1, 2019 – Canadian Black Book is releasing results from its annual car buying study, conducted by Ipsos. The study breaks down the differences between various Canadian demographics, in how they shop, what they expect and overall knowledge gaps when it comes to vehicle shopping, buying and ownership.
Vehicle ownership (or leasing) as a primary example, demonstrates a wide gap, where 48 per cent of those 18 to 34 years old surveyed own or lease, while 77 per cent of those 55 plus do. Nationally across all demos, the survey suggests that 47 per cent of the vehicle owning population is ready to buy a new vehicle in the next 24 months (down 4 points from last year). The group most likely to buy in that timeframe are those aged 35-54 at 53 per cent; those 18-34 sit at 51 per cent; and the oldest group is much less likely at 37 per cent.
A partial explanation to the ownership (and leasing) and intentions to buy numbers by age group, is reflected in the growing trend to rely on ride sharing. Twelve per cent of respondents in total, said they rely on this evolving service. More than double that number (27 per cent) are in the youngest age category, compared to nine per cent of those 35-54 and only 4 per cent in the 55 plus age range.
When it comes to the idea of purchasing vehicles fully online, without going into a dealership, three in ten (29 per cent; two points increase from last year) of all respondents suggested they would likely do so. Males are much more likely at 36 per cent compared to females at 24 per cent, who would purchase online. Households with kids are at 40 per cent where those households with no kids are only likely at 24 per cent. The most probable demographic to conduct end-to-end online vehicle purchases are the youngest (18-34) at 43 per cent, where 30 per cent of those 35-54 would and the 55 plus group are least likely at just 16 per cent.
“As we dissect this research we are finding some very telling statistics that we monitor from year to year, which help us understand developing trends and allow us to offer this information to the auto industry in Canada,” says Brad Rome, President at Canadian Black Book.
Also, when asked ‘how likely are you to reduce the number of vehicles in your household over the next two years’ two in ten Canadians said they would be likely to do so. When asked the same question, 35 per cent of the younger generation responded to be likely; while 19 per cent were likely in the middle age group; and only 12 per cent of those over 55 were likely.
As for other online car shopping tools, specifically trade-in value calculators, surprisingly older Canadians are more likely to use these tools to research values at 65 per cent of those 55 and older, compared to 55 per cent of the 18-34 age group. At trade-in time, only 21 per cent of younger car buyers had a good idea of the value of their vehicle, while of those over 55 40 per cent suggest they had good knowledge of what their trade-in was worth. Sufficed to say, the older generation (55 plus) are far more likely to have traded-in a vehicle at 63 per cent of those respondents compared to only 29 per cent of those youngest group.
“This directly correlates to experience in the market and why the industry needs to treat these consumers differently, in how they market, sell and service them along the ownership journey,” says Brian Murphy, VP Research and Editorial at Canadian Black Book.
Gender and age also bear some major discrepancies as it relates to the acceptance of alternate energy vehicles. If fuel prices were to increase $0.25, males are more likely to consider an alternate energy vehicle at 58 per cent, while only 38 per cent of females would be likely to choose the greener option. The younger a vehicle owner is the more likely they would consider these vehicles, where 58 per cent of those 18-34 would; 48 per cent in the 35-54 age range; and 40 per cent of those who are over 55 would.
When it comes to financing, we see a similar storyline where younger vehicle owners are more likely to hold a loan at 32 per cent of those 18-34, 37 per cent of those 35 to 54 and only 23 per cent of those over 55. From a gender perspective, 34 per cent of males hold auto loans compared to 28 per cent of females.
As expected income range and level of education directly influences the purchase decision of whether to buy new or used. 65 per cent of those with university educations and the same number of those in a household making over $100k per year, buy new vehicles. Conversely, only 36 per cent of those surveyed in households making less than $40k annually, intend to buy new. In terms of gender, six in ten (60 per cent) males are likely to buy new versus 52 per cent of females.
“Many of these trends might be what you would expect to see, however, seeing the actual numbers could serve as an eye opener and help determine strategies for OEMs and dealers moving forwards,” Murphy adds.
About the Poll:
These are some of the findings of an Ipsos poll conducted between 21-24 December 2018, on behalf of Canadian Black Book. For this survey, a sample of 1,250 Canadians aged 18 and over was interviewed. Weighting was then employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±3.2 percentage points, 19 times out of 20, had all Canadians aged 18 and over been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error and measurement error.
About Canadian Black Book:
For more than 55 years, Canadian Black Book has been the trusted and unbiased Canadian automotive industry source for vehicle values. Canadian Black Book tools and information are considered ‘The Authority’ for vehicle values not only by car dealers and manufacturers, but also the leasing, finance, insurance and wholesale sectors. For the past seven years, consumers have also benefited from the same expert insight. In 2010, Canadian Black Book introduced their consumer website that includes free online tools for calculating a vehicle’s Trade-in Value, Future Value, Average Asking Price, and the new vehicle equity calculator. The popularity of these tools has taken off with the website seeing an average of over 200,000 value lookups monthly. Canadianblackbook.com offers unique vehicle valuation tools and is a distinctly Canadian resource for car buyers and sellers.
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