The latest numbers are in, and data from a market research firm indicates that Canadian auto sales are on track for yet another record-breaking year. If trends from the first six months of the year continue, Canadian auto sales will be at a record high for a fourth consecutive year.
Canadian Auto Sales Numbers
Data released in early July by DesRosiers Automotive Consultants shows that Canada is on track for record-high auto sales once again.
Canadians bought 989,177 new vehicles in the first six months of 2016, up 6 per cent from the same time period last year. Dealers sold a record 191,088 new vehicles in June, which was a 7.4 per cent increase from a year earlier.
Light trucks - a category that includes pickups, SUVs, minivans, and crossovers - are driving the trend. Light truck sales increased 14.5 per cent during the first six months of the year. Conversely, sales of passenger cars slipped 6.8 per cent in that same time frame.
Why are sales increasing despite economic concerns and mounting consumer debt? There are a few reasons:
- Vehicles in the light truck segment generally have four-wheel drive, which is important for the wintertime in Canada.
- SUVs and crossovers have become the family vehicle of choice for many thanks to the versatility they offer.
- Incredibly low interest rates are helping to boost sales.
- DesRosiers analysts believe that economic strength in Ontario, British Columbia, and, to some extent, Quebec, is playing a factor.
New Cars and Bad Credit
With new vehicle sales as robust as they are, many consumers with less than perfect credit have to be wondering: Could I possibly qualify for a new car loan?
The good news: it is very possible for consumers with dinged credit to qualify to finance a new car. And the current lending boom has even resulted in an increasing number of loan approvals for new cars, even for borrowers with imperfect credit.
While new cars come factory-fresh with a manufacturer-backed warranty, they also tend to be more expensive. Any consumer with damaged credit looking to finance a new car would be wise to make sure it fits well within their budget and allows them to keep the loan term as short as possible.
Taking Advantage of the Market
If you have bad credit and are on the fence about getting a car loan, the timing couldn't be better.
The Market is Strong and Interest Rates are Low
The auto lending market has been strong for some time now. Sales have been up and auto loan delinquencies have stayed low, which makes lenders more willing to approve applicants. It might be best for those on the fence to act fast before lending tightens up or interest rates rise.
Take Advantage of Slumping Passenger Car Sales
Because passenger car sales are down, automakers are doing what they can in order to move smaller cars off dealer lots more quickly. That often involves cash-back incentives, and consumers - even those with bad credit - can take advantage. If you are looking for an affordable small car, one with a rebate to put toward the purchase could help set you up for a successful auto loan.
We Can Help
Thanks to rising Canadian auto sales and favourable lending conditions, even credit-challenged consumers may be able to get financed for a new car. However, they still need a dealer who can work with their situation.
Canada Auto Loan helps people with bad credit find auto loan financing. We have helped thousands of Canadian residents get connected to the right auto dealers, and we may be able to do the same for you. Fill out our free and discreet application today. You could be back on the road in no time.