Here’s how Canadians are approaching car buying

Despite ongoing economic challenges, Canadians are demonstrating resilience in their vehicle purchasing habits, according to new research from AutoTrader.

The study, conducted in August 2024, found that vehicle purchase intent has remained stable compared to the previous year, with 27 per cent of Canadians planning to buy a vehicle in the next six months.

While the economic landscape remains challenging, with high interest rates, gas and vehicle prices influencing decisions, Canadians are adapting. AutoTrader’s data shows that 84 per cent of consumers consider high vehicle prices a major factor when making purchasing decisions. However, 53 per cent of Canadians believe their financial situation will improve in the next six months, marking an increase from 45 per cent in 2023.

Canadians are also increasingly open to both new and used vehicles. Nearly half (47 per cent) of used-car buyers consider new vehicles, while 36 per cent of new-car buyers are exploring used options. This trend highlights consumers’ continued search for the right balance between affordability and vehicle needs.

SUVs remain a dominant force in the market, with AutoTrader’s data showing that SUVs account for 40 per cent of all vehicle searches in 2024, up from 38 per cent in 2023. Leading SUV models now make up half of the top sold list, reflecting a 43 per cent year-over-year increase in SUV inventory. Despite this, cars still maintain a significant presence, making up 49 per cent of all vehicle searches.

The truck category has seen stable consumer interest, accounting for 10 per cent of searches, though its share of sales has decreased from 40 per cent in 2023 to 20 per cent this year. Nonetheless, truck inventory has risen by 13 per cent year-over-year.

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