Why Do Canadians Still Pick Larger Cars（为何加拿大人仍喜欢购买大款车）?

On November 15, Statistics Canada released its latest car sales survey reported that Canadian purchased 4.2 per cent more new cars in September, a big turnaround from the August 4.8 per cent decline. The more vehicle purchases were coming from stronger truck sales, especially those Northern American made models.  

Canadians still prefer bigger sizes when buying a new car. This buying preference seems to be inconsistent with the increasing gasoline price movement. The gas price has gone up to above 100 cents per litre since the summer of 2008, even when the crude oil price dropped significantly between late 2008 and early 2009. The vehicle buying preference does not agree with the observation that Canadians appeared to drive less either, according to the Statistics Canada’s another survey, the Canadian Vehicle Survey.

However, if considering the economic theory of consumer choice, it is not surprising that Canadains are still willing to pick larger vehicles. Northern American car makers have offered consumers very competitive discounts and financing packages since summer 2009, for example, truck prices have dropped by an average $6,000 to $9,000 per vehicle plus an interest-free loan offer.

A large scale of vehicle recall has significantly undermined consumer’s confidence for the imported models. Toyota, Honda, BMW, and Nissan, all once well-known for their product quality in the auto industry, now have all encountered problems due to tens of thousands and even millions of vehicles recalled.

Car safety and large urban sprawl are also the underlying factors that Canadians prefer choosing larger vehicles. A longer commute distance from shopping centers and entertaining facilities are the common designs among major Canadian cities and towns. To travel safely in a comfortable environment, driving a larger car will become the most preferable choice, if economic situation allows.

The result of the most recent Statistics Canada’s new car sales survey indicates that consumer’s choice on purchasing a new car still follows the rationale of economic theory. Commodity price is still the most important factor when consumers make their buying decision. Other factors like caring environment are only secondary when choosing their consumer products.