New data from AutoTrader reveals a shift in consumer preferences amid economic pressures

TORONTO, Dec. 10, 2024 /CNW/ – Year-end Top Searched and Top Sold data from AutoTrader, Canada’s largest and most trusted automotive marketplace, reveals that economic pressures may well be weighing on Canadian consumers when it comes to the type of car they are shopping for – with many choosing vehicles that prioritize affordability, reliability and utility over luxury and aspiration.

At the same time that vehicle inventory on the AutoTrader marketplace reached record highs in 2024, luxury brands saw their lowest representation in both searches and sales since 2019, as Canadian consumer interest showed a shift toward practical, mainstream models.

Perennial favourites, such as the Ford F-150,Toyota RAV4 , and Honda Civic continue to be among both the Top Searched and Top Sold vehicles in 2024, while there were no luxury nameplates on the Top Sold list for the second year running. At the same time, mainstream vehicles such as the Toyota Corolla, Ford Escape, Hyundai Elantra, and Hyundai Tucson newly made their way onto the Top Sold list.

This year’s Top Searched and Sold data from AutoTrader clearly reflects that Canadian consumers are putting more focus on affordability, reliability, and utility over aspirational vehicle purchases.

“Each year, AutoTrader analyzes millions of data points to uncover the evolving story of Canadian vehicle shopping behaviors,” says Ian MacDonald, chief marketing officer, AutoTrader. “This year, the data clearly points to a shift away from luxury vehicles across most of the country, underscoring the reality that many Canadian consumers are watchfully navigating a challenging economic landscape.”

Provincial Search Breakout:
Based on AutoTrader’s Top Searched data, some key regional preferences emerge.

Ontario striking a balance – Ontario’s 2024 Top Searched list showcases a more balanced mix of luxury sedans, performance cars, and SUVs than in other provinces, with fewer trucks making an appearance. While cars continue their multi-year trend of dominating the Ontario rankings, the rise of the Toyota RAV4 and the addition of the Honda CR-V in 2024 points to growing consumer demand for larger, versatile vehicles in Canada’s biggest province.

B.C. gearing down from luxury – This year, British Columbia’s Top Searched list reflects a noticeable shift away from luxury vehicles, with only three luxury models appearing on the 2024 list (down from five last year), placing the province behind Ontario and on par with Quebec when it comes to conveyed interest in luxury vehicles. The Mercedes-Benz E-Class and C-Class are the luxury models that dropped off the list in 2024.

Quebec holding its purse strings drawn – As has been the case for some time, economical options continued to capture the interest of Quebec vehicle shoppers in 2024, with the Honda Civic maintaining its position as the top choice in the province. The Ford Mustang also held steady at #7, the same rank as the previous year. Meanwhile, all luxury models saw a drop in search rankings compared to last year.

Saskatchewan keeps on trucking – Trucks reinforced their dominance in the Top 10 Searched list in Saskatchewan in 2024, accounting for 60 per cent of all vehicle searches – the highest ranking anywhere in the country. The Toyota Tundra made a notable debut on the list, coming in at #9, while the Jeep Wrangler (#5 in 2023) was knocked off the Top 10 list in 2024. SUVs, meantime, have shown some upward movement, with the Toyota RAV4 increasing two spots to #2 and the Toyota 4Runner moving up one spot to #8.

Alberta doubling down on trucks – Alberta’s preference for trucks intensified this year, making up 50 per cent of the province’s vehicle search list, a notable increase from last year. With the Toyota Tundra coming onto the Top Searched list at #8, Albertans signaled their bold preference for truck and full-size SUV choices over the more balanced mix of vehicles seen in 2023.

Manitoba seeking variety – Manitoba’s 2024 Top Searched list showed significant movement, with only 30 per cent of vehicle models maintaining their position from 2023. Highlighting a preferential shift toward larger, more versatile options, both Jeep models from the 2023 list have been replaced by the Toyota Highlander (#7) and Toyota 4Runner (#8), effectively doubling Toyota’s presence on the province’s Top Searched list.

Maritimes dashing the middle ground – In the Maritimes, vehicle preferences highlight a shift toward larger vehicles like trucks and full-sized SUVs, while compact cars and smaller sedans held steady in consumer interest. With mid-sized vehicles squeezed out, larger vehicles dominated the top spots on the 2024 Top Searched list, while on the smaller, more affordable vehicle end, the Toyota Corolla made its debut at #10.

Automotive Trends Outlook:
This year’s research from AutoTrader also explored how Canadians are navigating the complexities of the current economic environment, revealing sustained demand amid increased inventory and moderate shifts in pricing. Overall, AutoTrader sees that Canadian car buyers are maintaining a resilient and adaptive mindset as they weigh affordability against a growing desire for larger, more versatile vehicles.

Key observations include:

Vehicle purchase intent holding steady
The research AutoTrader conducted in August 2024 reveals that Canadians’ intent to purchase has remained stable over the previous year, with 27 per cent of consumers planning to buy a vehicle in the next six months, up slightly from 26 per cent in 2023.

Although the impact of high interest rates, gas prices, and inventory shortages did ease somewhat in 2024, price is still a key consideration for most buyers. According to AutoTrader’s data, 84 per cent say that “high vehicle prices” influence their purchase decisions.

While many Canadians remain cautious about their financial outlook, some are feeling more optimistic: 53 per cent believe their finances will improve over the next six months, up from 45 per cent who felt the same way a year earlier. Even so, economic factors like vehicle prices and inflation are the top factors that continue to influence vehicle purchasing decisions.

Despite these challenges, Canadians are staying active in both the new and used car markets. Cross-shopping is common, with nearly half of used car buyers (47 per cent) considering new vehicles, and 36 per cent of new car buyers exploring used options. This shows that while pricing and economic conditions are top of mind, many Canadians continue to search for what they believe is the right vehicle for their wants and needs.

SUV interest accelerates, but cars maintain appeal
AutoTrader’s marketplace data reveals that SUVs continue to remain highly popular with car buyers, accounting for 40 per cent of all vehicle searches in 2024, up two per cent from the previous year. Leading SUV models made up half of the Top Sold list for 2024 and continued to climb in search rankings. This surge in popularity aligns with a significant 43 per cent year-over-year increase in SUV inventory.

While consumer interest in SUVs continues to rise, cars still maintain a strong presence in the market. Despite a slight two per cent dip in search share, cars account for nearly half (49 per cent) of all vehicle searches on AutoTrader. This suggests that while SUVs are gaining ground, cars remain a significant part of the automotive landscape. This could also reflect ongoing interest in affordability, as cars are often perceived as more budget-friendly options.

Nationally, consumer interest in trucks has remained stable, with the category accounting for 10 per cent of all vehicle searches in 2024, virtually unchanged from the previous year. However, in 2024 trucks made up only 20 per cent of the Top Sold list, down from 40 per cent in 2023. Despite this, truck inventory across the country increased 13 per cent year-over-year.

Interest in EVs rise, even as purchase intent loses its charge
Electric vehicles continued to capture the attention of car shoppers in 2024, but widespread adoption remains elusive. Search interest in EVs on AutoTrader grew 9 per cent in 2024, yet accounted for just 8 per cent of total search volume on the site. While this interest was consistent across all regions, purchase consideration for EVs declined for the second consecutive year. According to a March study by AutoTrader, only 46 per cent of non-EV owners were open to buying an EV in 2024 (down from 56 per cent in 2023 and 68 per cent in 2022), highlighting a clear gap between interest and actual purchase intent.

Nationally, Tesla, Ford, and Audi continue to lead the pack in EV searches, reflecting ongoing consumer interest in these brands.

The role of incentives in EV Adoption
Incentives are playing an increasingly crucial role in encouraging adoption, with a clear correlation between regional incentive programs and heightened interest in EVs. In 2024, British Columbia and Quebec led the country, with EVs accounting for the highest share of total vehicle searches–11 per cent and 10 per cent respectively. In Quebec, where a generous $7,000 rebate is currently offered (set to decrease to $4,000 in 2025, $2,000 in 2026, and phasing out by 2027), there has been a notable uptick in demand in the short term. This surge is partly driven by automakers prioritizing EV inventory for the province in response to the incentive, as well as car shoppers eager to take advantage of the rebate before it phases out.

Hybrids gaining interest
While overall purchase intent for EVs has slowed down, interest in hybrids is on the rise. In fact, 62 per cent of EV intenders are now considering hybrid electric vehicles (HEVs), and 60 per cent are considering plug-in hybrid electric vehicles (PHEVs), with consideration for HEVs and PHEVs higher than Battery Electric Vehicle (BEV) (50 per cent). This shift towards hybrids coincides with a significant increase in availability, as listings for electric and hybrid vehicles have surged, growing 12 per cent year-over-year as of November 2024.

Methodology
Analysis was performed based on site analytics from AutoTrader.ca using Canadian search and sold by proxy delist data from Jan. 1 to Oct. 21, 2024. Year-over-year analysis was based on data from January 2022 to October 2024. AutoTrader uses delistings as a proxy for sales by analyzing the movement of inventory listings on the site. AutoTrader commissions independent third-party research to understand Canadian car shopping habits amongst both car intenders and past purchasers.

About AutoTrader
AutoTrader is the largest and most trusted automotive marketplace in Canada. Offering the largest inventory of new cars and used cars in Canada, AutoTrader boasts hundreds of thousands of new and used vehicles for sale to Canadians across the country. AutoTrader receives over 26 million monthly visits to the marketplace and the AutoTrader app has been downloaded by more than 7 million Canadians. Visitors are able to buy or sell cars, trucks or other motorized vehicles quickly, easily and confidently. Buyers can search based on vehicle model, make, colour and geographic location to find the deal that is right for them. AutoTrader is also an online destination for auto enthusiasts, featuring news, reviews, videos and podcasts from award-winning automotive journalists. Follow AutoTrader on LinkedIn, Facebook, Instagram, TikTok and YouTube.

SOURCE AutoTrader

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