SURVEY: MOST CANADIANS ARE DELAYING OR CANCELLING MAJOR PURCHASES DUE TO ECONOMIC CLIMATE

TORONTO, Ontario (June 27, 2024) – Rising costs of living are significantly impacting Canadians' perceptions of what they can afford – including transportation. A recent Léger survey commissioned by Toyota Canada sheds light on these economic pressures. These results reveal key shifts in consumer behaviour, preferences in the automotive market, and the need for automakers to focus on delivering high value throughout the ownership lifecycle.

Majority of Canadians delaying or cancelling major purchases

Fifty-six percent (56%) of Canadians are addressing affordability concerns by either cancelling or delaying at least one major purchase. The most affected areas include travel (34%), personal vehicles (21%), and home renovations (20%). Alberta (66%), Manitoba and Saskatchewan (61%), and British Columbia (58%), report the highest percentages of delayed purchases.

Age is a factor in delayed or cancelled purchases:

• Ages 18-34: 63% of respondents reported delayed or cancelled purchases.
  
• Ages 35-54: 62% of respondents reported delayed or cancelled purchases.
• Age 55+: 46% of respondents reported delayed or cancelled purchases.

The types of purchases delayed or cancelled also vary by age group:

• Ages 18-34: Top categories include travel (40%), personal vehicles (22%), and home ownership (20%).
• Ages 35-54: Top categories include travel (38%), home renovations (28%), and personal vehicles (26%).
• Age 55+: 53% reported that they have not delayed or cancelled any purchases.

Majority of Canadians changing approach to vehicle ownership

“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, Corporate, Toyota Canada. “This decision goes beyond the new car purchase to consider operating and maintenance costs as well as resale value down the road.”

Fifty-nine percent (59%) of Canadians believe it is less financially achievable to own a vehicle today compared to their parents' generation, with over two thirds of British Columbians feeling the most pressure.

Due to affordability concerns, 66% of respondents reported changing their approach to vehicle ownership in the past year. Specifically, they are:

• Delaying the purchase of a new vehicle (31%)
• Opting for a used vehicle instead of purchasing new (27%)
  • Among younger drivers aged 18-34, this figure rises to 31%, compared to 23% for those aged 55 and older.

In light of these findings, it is essential that automakers 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. “That’s what leads to vehicles like the Corolla Hybrid winning a 2024 Vincentric Lowest Cost to Own in Canada award. We’re working hard to meet the needs of our customers for the long haul.”

Methodology

Léger, the largest Canadian-owned full-service market research firm, conducted an online survey with a representative sample of 1,536 Canadian residents. Respondents were randomly selected using Léger’s panel and was completed between June 14-17, 2024. 

No margin of error can be associated with a non-probability sample (i.e. a web panel in this case). For comparative purposes, though, a probability sample of 1522 respondents would have a margin of error of ±2.5%, 19 times out of 20.

About Léger

Leger is one of North America’s fastest-growing market research company, known for its forward-thinking experts, innovative approaches, and having the most accurate panel (LEO) and insights. As a market leader, the company combines its decades of experience with the latest technologies to deliver end-to-end market research, advanced analytics, CX, and digital marketing expertise. Leger’s mission is to give people a voice and empower its clients to make better decisions in a constantly changing world. For more information: leger360.com

About Toyota Canada Inc.

Toyota Canada Inc. (TCI) is the exclusive Canadian distributor of Toyota and Lexus vehicles. Toyota has sold over six million vehicles in Canada through a national network of 287 Toyota and Lexus dealerships. Toyota is dedicated to bringing safety, quality, dependability and reliability to the vehicles Canadians drive and the service they receive. TCI’s head office is in Toronto, with regional offices in Vancouver, Calgary, Montreal and Halifax, and parts distribution centres in Clarington and Vancouver. Toyota also operates two manufacturing facilities in Canada. Having produced more than nine million vehicles, popular Canadian models built at these facilities include Toyota RAV4, Toyota RAV4 Hybrid, Lexus RX 350 and RX 450h hybrid, as well as Lexus NX 250, NX 350 and NX 350h hybrid. The company has sold more than 20 million electrified vehicles worldwide and is the number one seller of electrified vehicles in Canada.