Canadians’ affordability concerns lead to canceled, delayed vehicle purchase

The state of the economy has pushed many consumers to reconsider major purchases, according to a recent Léger survey commissioned by Toyota Canada. In a news release, the OEM shed some light on the economic pressures weighing consumers down.

They said rising cost of living has had a significant impact on Canadian consumer’s perceptions of what they can afford — and that includes in the area of transportation. For example, 56% of those surveyed have either cancelled or delayed at least one major purchase to help manage affordability concerns. The most affected areas include travel (34%), personal vehicles (21%), and home renovations (20%). 

“At a time when Canadians are grappling with financial pressures, how to best spend their automotive dollars for long-term value becomes even more important,” said Stephen Beatty, Vice President of Corporate at Toyota Canada, in a statement. “This decision goes beyond the new car purchase to consider operating and maintenance costs as well as resale value down the road.”

Another angle shows how affordability concerns range from province-to-province, with Alberta (66%), Manitoba and Saskatchewan (61%), and British Columbia (58%) reporting the highest percentages of delayed purchases. Over two-thirds of British Columbians feel the most pressure. Toyota Canada said 59% of Canadians view owning a vehicle as less financially achievable today than it was during their parent’s generation.

Beatty said it will be important how OEMs focus on affordability throughout the ownership lifecycle. 

“We approach these customer needs with three distinct strategies: 1) offer a full line of vehicles, including small cars; 2) focus on quality, durability and reliability; and 3) make energy efficiency a priority across all of our gas and electrified powertrains to ensure low operating costs while reducing our environmental footprint,” said Beatty in a statement.

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