Thursday, October 22

Canadian Auto Finance Trends

Navigating the New Normal – Canadian Auto World
Canadian Auto Finance Trends, Equifax Canada Co., Industry News, Market News, Navigating the New Normal

Navigating the New Normal – Canadian Auto World

As witnessed on a global scale, the coronavirus (COVID-19) pandemic has struck a blow to many retail industries, arguably amongst one of the hardest hit being the automotive sector. Industry sources estimate global auto sales could be down
 20 per cent year-over-year (YoY) in 2020. Canada, after showing some positivity
in January and February (up 0.7 per cent and 2.1 per cent YoY respectively), was down 48 per cent YoY in March, dropped an estimated 75 per cent in April and was down 44 per cent in May. For the year, the Canadian baseline scenario for new light vehicles is estimated to decline 25 to 30 per cent; used light vehicles are expected to also feel a drop, but to a lesser extent at around 10 per cent. Financing of a vehicle is a key part of the automotive cycle and with the ons...