Automotive

Canadian retail automotive sales down >50% in April - Statistics Canada Data

  • Last Updated:
  • Jul 18th, 2020 10:30 am
[OP]
Newbie
Oct 11, 2018
13 posts
12 upvotes

Canadian retail automotive sales down >50% in April - Statistics Canada Data

Hi, sorry if this has already been posted -

Stats Canada data released from their commodities survey shows a greater than 50% decline in automotive sales in April compared to January/February of this year. They've also noted that the quality of this data is 'excellent'.

URL: https://www150.statcan.gc.ca/n1/daily-q ... 4d-eng.htm

Curious considering the dealerships I've talked to have been claiming they haven't seen much of an impact Winking Face
23 replies
Deal Guru
User avatar
Feb 11, 2007
14894 posts
15754 upvotes
Oakville
Well duh.. Surprised sales are that high considering we were locked down and how it's a bad time to be spending on non-essentials.
Last edited by engineered on Jul 15th, 2020 10:49 am, edited 1 time in total.
Deal Expert
User avatar
Oct 28, 2004
21153 posts
2488 upvotes
Toronto
Not surprised, folks are hunkering down and conserving cash flow given the uncertainties.

Though some folks are still riding the CERB train, I think the real pain will be felt when that dries up.

Let's see what happens closer to fall....

FS: Nothing at the moment
Heatware: 63-0-0
Deal Expert
User avatar
May 10, 2005
35457 posts
9478 upvotes
Ottawa
engineered wrote: Well duh.. Surprised it's that high considering we were locked down and how it's a bad time to be spending on non-essentials.
Most dealers n my area were closed and only opened if you made an appointment so, no surprise at all. Let be back up, actually, I am surprised it is only down 50%.
The Government cannot give to anybody anything that the Government does not first take from somebody else.
Member
User avatar
May 12, 2019
235 posts
301 upvotes
Hey - I am trying to buy a car but the used market is currently too hot and overpriced. How much do you think dealers are willing to negotiate on a new car during this situation as a result of this news?
Member
Sep 15, 2017
360 posts
333 upvotes
Saskatoon
In before the RFD car experts rush in to tell us they aren't making cars anymore and dealerships are running out so the prices will skyrocket. Face With Tears Of Joy
Member
Dec 27, 2006
417 posts
204 upvotes
Canada
yarou1000 wrote: Hi, sorry if this has already been posted -

Stats Canada data released from their commodities survey shows a greater than 50% decline in automotive sales in April compared to January/February of this year. They've also noted that the quality of this data is 'excellent'.

URL: https://www150.statcan.gc.ca/n1/daily-q ... 4d-eng.htm

Curious considering the dealerships I've talked to have been claiming they haven't seen much of an impact Winking Face
This is April data. In April, Canada was practically in full lockdown mode. Things have picked up for June & July.
Deal Guru
User avatar
Feb 11, 2007
14894 posts
15754 upvotes
Oakville
oilerfan89 wrote: In before the RFD car experts rush in to tell us they aren't making cars anymore and dealerships are running out so the prices will skyrocket. Face With Tears Of Joy
Car plants are running full tilt. I expect prices to drop with too many cars on the market.
There are already very good deals to be had. I expect them to get better in the fall.
Deal Expert
Jan 15, 2006
15018 posts
12342 upvotes
Richmond Hill
hey water is wet!!!
Sr. Member
May 2, 2017
761 posts
995 upvotes
oilerfan89 wrote: In before the RFD car experts rush in to tell us they aren't making cars anymore and dealerships are running out so the prices will skyrocket. Face With Tears Of Joy
All the dealerships I drive by seem to be overflowing with cars sitting on their lots... Don't think supply is an issue. There will probably be some aggressive clearout sales on 2020 models when the 2021's start coming out.
Deal Fanatic
Sep 1, 2004
5739 posts
4393 upvotes
Pete_Coach wrote: Most dealers n my area were closed and only opened if you made an appointment so, no surprise at all. Let be back up, actually, I am surprised it is only down 50%.
I thought dealership lock down is only a Ontario thing. The rest of the country is still open but I guess most people has no mood unless deal was hot like that Car2Go clearance deal.

Again, April numbers are old news. We have already gone thru this. May has returned to March numbers and June should be better than May but I have not digged up any numbers yet.

Volvo is deliver 36% more cars in June than May and compared to a non-existent Apr.

EDIT: June numbers not published yet.
https://www.goodcarbadcar.net/2020-cana ... -by-brand/

But as I have posted this before, for brands that are reporting, May sales is about 2-3x of Apr's low. Kia and Hyundai had the best month so far in 2020 in May. YTD is lowers for obvious reason when you wipe out 6-7 weeks of selling days. I think if they can end the year with being down only 10-15% compared to 2019, it's a win.
oilerfan89 wrote: In before the RFD car experts rush in to tell us they aren't making cars anymore and dealerships are running out so the prices will skyrocket. Face With Tears Of Joy
Well unfortunately, now that Mexicans are paid 400% more under NAFTA 2.0 more and continue pressure on aluminium tariffs, I don't see car prices dropping soon. But TPP and CETA may buy us some relief from Japan and Europe so those products may not rise as fast as North American made ones.

https://www.industryweek.com/the-econom ... o-industry
While Ford and other automakers may find their supply chains running more smoothly as a result of USMCA, consumer demand may stall if motor vehicle prices rise too much. The new trade deal will force manufacturers to choose whether to:

· Absorb the higher costs as lost margin

· Renegotiate part supply deals to pass costs to suppliers

· Raise finished good prices to pass costs to consumers

· Change product mix to make offerings less expensive

Most likely, automakers will implement some combination of the above.

But you may be right that another round of discount may be coming toward year end. We are not beating COVID in North America. Another shutdown is just a matter of time. So people, when next lock down comes, go out and get your deals. All the great deals was in Apr and early May.
Last edited by Xtrema on Jul 15th, 2020 11:29 am, edited 4 times in total.
Deal Guru
User avatar
Mar 1, 2008
14176 posts
3395 upvotes
Toronto, Ontario
engineered wrote: Well duh.. Surprised sales are that high considering we were locked down and how it's a bad time to be spending on non-essentials.
Cars are a must as people don't want to take transit and risk catching COVID.
Sr. Member
User avatar
Jul 20, 2016
568 posts
466 upvotes
Toronto
ultimately nobody is gonna do business at a loss now that we know the amount and extent of stimulus being provided. Best you can do is to wait for large factory incentives and grind the dealer as much as possible for an all-in "below invoice" deal.
Deal Fanatic
Sep 1, 2004
5739 posts
4393 upvotes
June numbers here:

https://www.desrosiers.ca/sales

Total sales are still down but May is 2x Apr and June is 3x Apr in volume. If trend continues we may have a "normal" July.

CERB should come off in Sep, I expect the numbers will be crap in Q3 which may lead to a sell off in Q4/year end.
Sr. Member
Apr 5, 2017
515 posts
378 upvotes
Edmonton, AB
They are holding on to a bubble. Of course they will deny anything and keep up appearances and not let on to people any weaknesses. There are none, they are sales, they want to extract the best possible profits while the going is still good. I read a lot of Jalopnik and there was a lot of talk about "auto loan crisis" and huge bubbles of nearly 10 year loans - even before COVID shutdowns. After the influx of sales that were bottled up for two months there, and after the Fall rush, things are probably going to fall flat. Especially in Alberta here. I've already stocked up on a few $500 beaters. Who knows, maybe to stimulate the auto industry down the line, they will introduce another Cash4Clunkers program. Cut me a cheque for 8k for all 4 of my clunkers and maybe I'll go grab a 50k Bronco at 0% financing over 8 years while retaining ridiculous resale value (pipedream thinking).

Another trend I'm seeing are used cars under $5000 which I can't stop browsing because I'm like a crazy cat lady taking in strays. 80% are overpriced junk that I wouldn't pay more than $1000-1500 for. The other 20% I see immense value in - typically just a select few Japanese imports occupy that 20%. Or extremely cheap, disposable domestics at their lowest rock bottom value. Even at rock bottom, domestics are such garbage they will find even more value to lose until they are worth within $100 of scrap value.

Top