TORONTO, April 17, 2013 - Four-in-10 Canadians (39 per cent) are likely to buy a car in the next two years, according to an RBC Auto Poll . The survey suggests that Canadians are evenly split when considering how a new car purchase would affect their finances, with exactly half saying they are confident that they would not go into debt with a new vehicle. The other half expressed doubt or did not know the impact buying a new vehicle would have on their personal finances.
"The poll shows that car purchasing and leasing intentions have stalled this year, as Canadians think prudently about how it may affect their personal financial situation," said Richard Goyder, vice-president of Personal Lending, RBC. "Whether it's to get to work or to meet the needs of a growing family, the reality is that many Canadians need a vehicle. The majority also get help from their bank, whether at the branch before purchase or while at the dealership when they're ready to buy."
Once Canadians are ready to buy a car, the survey found that almost six-in-10 (57 per cent) plan to finance all or a portion of their next vehicle purchase or lease, with 59 per cent of those planning to finance doing so with help of their financial institution
Canadians budget before buying a car, seek multiple sources of advice
When asked about financing their vehicle, more than half of Canadians (52 per cent) surveyed consider their budget to ensure they can afford it. The interest rate on a loan (20 per cent) and the monthly payment (16 per cent) were the next most important factors. The majority of Canadians who own or intend to purchase a car (62 per cent) say paying off a loan quickly is more important than low monthly payments (36 per cent) when buying a car. Half of Canadians (51 per cent) get car-buying advice from family and friends, followed by car dealers (46 per cent). News media (31 per cent) and online forums (26 per cent) are also popular sources.
Women focus on overall costs of a car
While men and women are about equally likely to buy a car in the next two years (42 and 38 per cent, respectively), there are some differences in how they may approach this major decision:
|Affordability||89 per cent||80 per cent||85 per cent|
|Best price after
|80 per cent||72 per cent||76 per cent|
|The test drive||67 per cent||52 per cent||60 per cent|
|Car-related costs||66 per cent||54 per cent||60 per cent|
|Positive consumer reports||62 per cent||52 per cent||57 per cent|
"A car is a major purchase that requires research and advice. It's an entirely personal choice, and it's important to know if you can afford your car beyond the monthly car payment. Use online calculators, talk to your banker, and consider other factors in your overall financial picture," said Goyder.
About the 2013 RBC Auto Poll
The 2013 RBC Auto Poll was conducted by Ipsos Reid between March 6 and 12, 2013. The online survey is based on a randomly selected representative sample of 1,559 adult Canadians. The results are considered accurate to within ±2.8 percentage points, 19 times out of 20.
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RBC supports a broad range of community initiatives through donations, sponsorships and employee volunteer activities. In 2012, we contributed more than $95 million to causes worldwide, including donations and community investments of more than $64 million and $31 million in sponsorships.
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