Power Information Network

June 27, 2005 09:02 ET

Power Information Network Reports: Canadian Owners Keep New Vehicles an Average of More Than Six Years

WESTLAKE VILLAGE, Calif.--(CCNMatthews - Jun 27, 2005) -

Canadian consumers keep their new vehicles an average of 6.4 years before trading them in for a new model, according to actual retail transaction data from more than 550 automotive franchises in Canada compiled by the Power Information Network (PIN).

PIN trade data from March through May 2005 show that Canadians drive their new vehicles an average of 116,797 kilometers before trading them in.

"Canadians tend to keep their vehicles significantly longer than U.S. drivers, who keep their vehicles an average of 5.1 years," said Tom Libby, senior director of industry analysis at the Power Information Network. "But the trends are similar. In both countries, owners of compact cars keep their vehicles longer than drivers of luxury cars or large SUVS, who are more likely to lease for three or four years."

Drivers of entry compact cars such as the Kia Rio and Hyundai Accent keep their vehicles 8.6 years -- longer than the ownership time period for any other segment in the industry. Entry compact car owners also drive their vehicles further -- 134,470 kilometers -- than drivers in any other segment.

In contrast, owners of full-size SUVs and heavy-duty full-size pickups keep their vehicles an average of 4.4 and 4.2 years, respectively -- the shortest ownership cycles among the 20 vehicle segments. Full-size SUV owners drive their vehicle an average of 109,316 kilometers before trading them in, while heavy-duty full-size pickup owners drive their trucks an average of 109,496 kilometers.

Premium sports car owners drive their vehicles the shortest distance, with the odometer reading an average of 56,364 kilometers at trade-in.

"One of the challenges the Canadian auto market faces is that most Canadian consumers tend to stay out of the market longer than U.S. consumers," said Richard Cooper, executive director of J.D. Power and Associates Canadian operations. "By driving their vehicles for a longer period of time, they're not in shopping as frequently. That slower turnover affects sales across Canada's new-vehicle market."

About Power Information Network (PIN)

PIN's automotive solutions are based on the collection and analysis of daily new- and used-vehicle retail transaction information from automotive franchises. PIN's industry-leading automotive solutions incorporate consumer demand and sales information to improve results in product planning, marketing, sales, and vehicle production and distribution processes for its customers including pricing, revenue management, incentives optimization, and vehicle remarketing. Additional information is available at www.powerinfonet.com

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, BusinessWeek and McGraw-Hill Education. The Corporation has more than 280 offices in 37 countries. Sales in 2004 were $5.3 billion. Additional information is available at http://www.mcgraw-hill.com.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com

Contact Information

  • Power Information Network, Troy, Mich.
    John Tews, 248-312-4119, or cell 248-321-5109
    john.tews@jdpa.com
    or
    Power Information Network, Westlake Village, Calif.
    Michael Greywitt, 805-418-8526, or cell 805-908-1548
    michael.greywitt@jdpa.com