Monday, April 21st5.3°C
20923
20957

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

20260


Recent Trending




Today's Market
S&P TSX14496.85-3.54
S&P CDNX997.84-0.93
DJIA16418.5910.05
Nasdaq4094.666-0.85
S&P 5001865.63+0.78
CDN Dollar0.9077+0.0006
Gold1285.80-7.60
Oil104.55+0.25
Lumber333.30+3.60
Natural Gas4.726-0.015

 
Okanagan Companies
Pacific Safety0.115+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.04
Cantex0.045-0.01
Anavex Life Sciences0.39+0.015
Metalex Ventures0.08+0.005
Russel Metals30.58-0.08
Copper Mountain Mining2.29-0.06
Colorado Resources0.26+0.005
ReliaBrand Inc0.12-0.01
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.25+0.02

 



21646

FEATURED Property
1515301#202 357 Monashee Road
2 bedrooms 2 baths
$309,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Learning to flirt with the edge

With all of the adventure activities I have done and still do, I wonder sometimes if the edge still exists. The systematic approach to learning a new adventure or extreme activity combined with the r...


Time spent prospecting

How much time should you put into prospecting? The question is a bit of a puzzle. Ideally, there would be a reference book that lists, by industry, how much time you should invest in prospecting acti...


Valuation fears grip markets

The Big Picture Valuation fears grip markets Growing concerns about the level of stock market valuations sparked a risk-off trade in global markets this week. Investors are worried that many companies...

_



21604

21637


Member of BC Press Council


21188