TORONTO and RICHMOND HILL, Ontario -

The days-to-turn rate for the Canadian used- and new-car markets climbed for the third straight month, according to the latest Automotive Market Metrics report from J.D Power and Associates’ Canadian Automotive Practice.

J.D. Power found that in August — the most recent data provided — each side of the industry was between 58 and 62 days to turn, with the new-car segment having a slightly higher number than used. Days-to-turn rates have been on the increase since May, with the new-car side showing the steeper climb.

J.D. Power’s data — released last week — also broke down the new- and used-car markets by purchase type.

In the past 12 months, 51 percent of used-car purchases were done via cash, while 46 percent were through loans and 3 percent were leases.

For new vehicles, 60 percent were loans, 22 percent were cash purchase and 18 percent were leases.

Provincial Sales

Sharing some additional insight on the Canadian new-car market, DesRosiers Automotive Consultants recently compared how Canada’s provinces are stacking up against one another.

For year-to-date sales through August, DesRosiers found that British Columbia and Newfoundland have seen the most growth, each climbing 11.6 percent year-over-year. Overall, new-vehicle sales are up 6.7 percent year-to-date through August.

Alberta and Saskatchewan (both up 11.2 percent), as well as Prince Edward Island (up 10 percent), were all up double-digits, too.

However, the nation’s two biggest provinces did not see the same type of growth.

“The central theme of provincial sales for quite some time is that Central Canada is holding back the light-vehicle market in this country,” DAC said in its analysis.

Ontario and Quebec, the nation's largest provinces and the two markets making up Central Canada, were up 5.9 percent and 2.9 percent, respectively.

Being that they're the nation's largest, “they are very important for overall performance at a national level,” the firm noted, also pointing out that national market is only increasing about half as rapid as the aforementioned five double-digit-growth provinces.

“Both B.C. and Alberta are large markets, but still nowhere near the size of Ontario and Quebec, so on their own they are not able to off-set the difficulties in Central Canada,” DAC stated. “One common theme about the provinces performing well is that they are all resource-based economies; and one common theme for Central Canada is both provinces are manufacturing-based.

“The value of the dollar has been driven up by our resources and it has certainly stymied growth in both Ontario and Quebec,” it noted. “Ironically, Ontario is home to about 130,000 auto and parts manufacturing jobs and the high dollar is hurting Ontario’s most important industry, which in turn results in less capability of buying the vehicles Ontario (and other jurisdictions) build.”