Central 1 Credit Union expects new vehicle sales to rise about 9% in 2012 compared with 2011, as low financing costs, industry incentives and relatively attractive prices combine with modest improvements in labour market conditions.
However, Central 1 Credit Union’s chief economist Helmut Pastrick added, at a forecasted 175,000 units this year, activity will still be low relative to the size of the population.
Pastrick’s predictions come on the heels of positive new vehicle sales data.
Following two consecutive monthly declines, new vehicle sales in B.C. and the Canadian terrorities rebounded in January. New vehicle sales rose 11% from December to 14,430 units, seasonally adjusted.
This pushed monthly activity to the highest level since September 2008 as dealers made up for two months of what Pastrick called “exceptionally weak” sales.
The average price of vehicles sold in the region has steadily increased since 2009 but there was a sharp dip in the fourth quarter of 2011.
“The pricing environment for new vehicles remains attractive for consumers,” Pastrick said.
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