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Car Purchasing Process - Canada - May 2015

Published: May 2015 | No Of Pages: 97 | Published By: Mintel

Product Synopsis

The challenge for automotive manufacturers is multi-faceted with bottom line results relying on factors such as attracting new customers to a brand, for example Millennials, who are less car-dependent than in previous decades and who rely on mobile technology in their everyday lives. Additionally, automotive brands face production uncertainty in Canada and the fallout that occurs with vehicle recalls.
Introduction
 
Definition
Abbreviations
 
Executive Summary
 
Market Drivers
Canada’s population is aging and will continue to do so in the coming years
Figure 1: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
The consumer
Most Canadians are planning on purchasing a vehicle(s) in the next 3 years
Figure 2: Planning vehicle purchase in next 3 years, February 2015
Canadians are not waiting long term for their next vehicle
Figure 3: Purchase period of next vehicle(s), February 2015
Most consumers are planning to purchase a new vehicle
Figure 4: New, used, or certified pre-owned, February 2015
Life stage is the biggest determinant of vehicle choice
Figure 5: Classification of vehicle intend to purchase, February 2015
Mileage of vehicle and fuel economy are key purchase motivators
Figure 6: Reasons for purchasing next vehicle, February 2015
The test drive remains top in the car purchasing process
Figure 7: Type of research planned before next vehicle purchase, February 2015
Manufacturer website(s) the key research resource
Figure 8: Likelihood to use research resources, February 2015
Researching cost and reviews are most commonly done via mobile device
Figure 9: Purpose of mobile device use in the car purchasing process, February 2015
What we think
 
Issues and Insights
 
Reaching Millennial car buyers
The facts
The implications
Increasing vehicle ownership in Canada through immigration
The facts
The implications
There’s something about Quebec
The facts
The implications
Social media can combat negative press concerning manufacturer recalls
The facts
The implications
 
Trend Application
 
Return to the Experts
Green and Lean
Prepare for the Worst
 
Market Drivers
 
Key points
Demographic overview
Canadian population count
Figure 10: Share of population of Canada, by territory/province, 2014
Canada’s population is aging and will continue to do so in the coming years
Figure 11: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
Immigration and ethnic diversity in Canada
Figure 12: Region of birth of immigrants, by period of immigration, Canada, 2011
Economic overview
Overall negative impact of lower oil prices on the Canadian economy
Figure 13: Canada’s GDP (% change), by quarter, Q4 2008-Q4 2014
Figure 14: Household disposable income and savings rate in Canada, Q4 2008-Q4 2014
Wealth distribution in Canada
Figure 15: Canada median net worth, by province, 2012
Canada’s employment rate has been steady, however, high levels of household debt and consumer confidence may impact car purchasing
Figure 16: Canada’s unemployment rate, by gender, January 2008-January 2015
Household debt in Canada
Consumer confidence wavers with falling oil prices
Figure 17: Consumer Confidence Index, monthly, January 2008-January 2015
Key economic indicators suggest cost of car maintenance has been stable
Figure 18: Monthly movements in selected major components of the Canadian Consumer Price Index, seasonally adjusted, March 2010-March 2015
 
Who’s Innovating?
 
Key points
Electric and hybrid technology striving for the masses
Figure 19: BMW i3 email advertisement, January 2015
Fuel efficiency of vehicles is on the rise
Auto technology shaping the future for drivers
Multicultural marketing gaining ground
Figure 20: Kingsway Toyota, Toronto, Ontario, Direct Mail, 2014
Figure 21: Stampede Toyota, Calgary, Alberta, direct mail, January 2015
 
Automotive Websites and Resources
 
Internet resources are tops in the car purchasing process
Figure 22: Likelihood to use research resources (any likely), by age, February 2015
Third-party research resources provide consumers with a consolidated source for local new/used vehicle inventory
Major vehicle research resource profiles
Autotrader.ca
Autos.ca
Autoblog Canada
Car and Driver
Carproof.com
Consumer Reports
Driving.ca
Edmunds.com
Kelley Blue Book
Motor Trend
Wheels.ca
 
Social Media – Car Purchasing Process
 
Key findings
Market overview
Key social media metrics
Figure 23: Key social media metrics, May 2015
Brand usage and awareness
Figure 24: Brand usage and awareness for selected automotive manufacturer brands, February 2015
Interactions with automotive brands
Figure 25: interactions with selected automotive manufacturer brands, February 2015
Social media activity and campaigns
What we think
Online conversations
Figure 26: Online conversations for selected automotive manufacturer brands, by day, May 20, 2014-May 20, 2015
Where are people talking about automobile brands?
Figure 27: Online conversations for selected automotive manufacturer brands, by page type, May 20, 2014-May 20, 2015
What are people talking about?
Figure 28: Topics of conversation around selected automotive manufacturer brands, May 20, 2014-May 20, 2015
 
The Consumer – Purchase Decision
 
Key points
Most Canadians are planning on purchasing a vehicle(s) in the next three years
Figure 29: Planning vehicle purchase in next 3 years, February 2015
Males more likely to be definite about their vehicle purchasing plan
 
The Consumer – Purchase Period
 
Key points
Canadians are not waiting long term for their next vehicle(s)
Figure 30: Purchase period of next vehicle(s), February 2015
Figure 31: Purchase period of next vehicle(s), by gender, February 2015
Figure 32: Purchase period of next vehicle(s) within the next year, by presence of children, February 2015
 
The Consumer – Vehicle Purchase Intention
 
Key points
Most consumers are planning to purchase a new vehicle
Figure 33: New, used, or certified pre-owned, February 2015
Male over-35s are most likely to purchase new vehicles
Figure 34: New, used, or certified pre-owned, by gender and age, February 2015
 
The Consumer – Vehicle Purchase Consideration
 
Key points
Lifestage is the biggest determinant of vehicle choice
Figure 35: Net classification of vehicle intend to purchase, February 2015
Figure 36: Classification of vehicle intend to purchase, February 2015
 
The Consumer – Purchase Motivations
 
Key points
Mileage of vehicle and fuel economy are key purchase motivators
Figure 37: Reasons for purchasing next vehicle, February 2015
Larger households with children are in need of another vehicle for the family
Figure 38: Need another vehicle for the family, by household size, February 2015
 
The Consumer – Research Process
 
Key points
The test drive remains top in the car purchasing process
Figure 39: Type of research planned before next vehicle purchase, February 2015
Quebecers are less interested in most vehicle research
Figure 40: Type of research planned before next vehicle purchase, Quebec vs overall, February 2015
Suburbanites are more interested in most vehicle research
Figure 41: Type of research planned before next vehicle purchase, suburban vs urban, February 2015
 
The Consumer – Research Resources
 
Key points
Manufacturer and dealer websites are the go to source
Figure 42: Likelihood to use research resources, February 2015
Figure 43: Likelihood to use research resources, 18-44s vs over-45s, February 2015
Those newer to the country are more research-savvy
Figure 44: Likelihood to use research resources, by birth location, February 2015
Quebecers continue to exhibit research-phobic behaviour
Figure 45: Likelihood to use research resources, Quebec vs overall, February 2015
 
The Consumer – Mobile Device Use in the Car Purchasing Process
 
Key points
Researching cost and reviews are most commonly done via mobile device
Figure 46: Purpose of mobile device use in the car purchasing process, February 2015
Canadian men are more likely to use mobile devices during the car purchasing process
Figure 47: Purpose of mobile device use in the car purchasing process (select), 18-44s vs over-45s, February 2015
Choose License Type
 
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