Tuesday, April 28th20.1°C
24963

Canadian auto sales expected to remain high this year: BMO report

TORONTO - Bank of Montreal expects Canadian auto sales to remain strong into 2014, following last year's record levels.

BMO economist Alex Koustas says consumers are responding well to technological advancements and improved fuel economy in every vehicle segment.

A solid lineup of models and "very generous" financing terms will also continue to generate interest from the Canadian consumer," Koustas said.

"Sales activity will remain brisk, but will likely drop off last year's pace given rising ownership rates and more elevated debt levels."

BMO said auto loans balances have risen 165 per cent since 2009, when the North American auto industry was in a deep recession, compared to a 35 per cent overall increase in consumer loans.

"Nevertheless an overheating is unlikely as long as financing terms remain balanced," Koustas wrote.

He predicts Canadian auto sales will slide marginally to 1.71 million units this year from 1.78 million in 2013, but still mark the third-best performance on record in 2014.

The bank said the leasing market is also beginning to rebound after taking a hit following the 2008 financial crisis.

"With loans showing some of the best performance on record and rates expected to remain low, it's likely that the credit wheels should remain well-greased over the next year," the bank said.

The Canadian Press


Read more Business News

25990


Recent Trending




Today's Market
S&P TSX15336.55-7.53
S&P CDNX695.67+5.57
DJIA18104.18+66.21
Nasdaq5052.77-7.48
S&P 5002113.74+4.82
CDN Dollar0.8315+0.0044
Gold1205.30+2.00
Oil56.95-0.04
Lumber250.70-5.50
Natural Gas2.521+0.031

 
Okanagan Companies
Pacific Safety0.115+0.035
Knighthawk0.010.00
QHR Technologies Inc1.44+0.04
Cantex0.03-0.01
Anavex Life Sciences0.3645-0.0305
Metalex Ventures0.095+0.000
Russel Metals27.06+0.01
Copper Mountain Mining1.21-0.04
Colorado Resources0.095-0.005
ReliaBrand Inc0.004-0.001
Sunrise Resources Ltd0.04+0.00
Mission Ready Services0.19-0.01
Decisive Dividend Corporation1.90+0.10

 



25753

FEATURED Property
2236443962 Ryder Drive
6 bedrooms 7 baths
$1,599,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Buy versus rent

Consider the top five reasons to buy versus rent: #5 Experience Freedom: Home ownership will free you from the ties that bind you to a landlord...no longer will you be dependent on someone else&rsq...


What's your score?

There was a time when we would sit down with nothing more than a sheet of paper and a sharp pencil to do the math. Totalling our expenses and subtracting our revenue, the amount left over was the answ...


Do you dare to dream?

Photo: Thinkstock.comI have never been able to understand why some people can only see as far ahead as the end of the current day. Instead of aiming for long term goals, they just wallow in their ever...

_



25289

26091


Member of BC Press Council


25777