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Technology's role can only grow in '08 - Jan 05, 2008
Gazing into my crystal ball for 2008, I foresee a number of trends and activities that will affect our industry and the car-buying public.
First is the continuing appeal of the Internet for car buyers. A study conducted by R.L. Polk & Co. found that the Internet is the most useful resource during the car-buying process (the same study reported that dealer visits remain the most useful source of information).
A surprising 42 per cent of new car buyers polled said that the Internet was "the most helpful source of information."
In 2008, watch for more dealership and manufacturer resources to be deployed to the Internet in an effort to reach this growing demographic.
In 2008, alternative fuel technologies will continue to make headlines as new advancements occur. Although these technologies are still years away from mass acceptance, automakers will continue to devote significant resources to the research and development of greener vehicles.
This year, expect to see a slight increase in new-car sales in Canada. DesRosiers Automotive Consultants released a study that found 43 per cent of vehicles bought 15 years earlier were still on the road in 2006. In 2000, the percentage of older cars on the road was 28 per cent.
In my opinion, the DesRosiers study reveals pent-up demand in the new car market, fuelled, in part, by the fact that people are driving their vehicles longer. This should lead to strong sales in all vehicle categories.
I expect that the pre-owned market will attract a large percentage of those new-car buyers this year. The expanding selection, excellent condition and solid warranty coverage of these pre-owned vehicles will make them highly attractive to buyers.
Of course, the sale of new vehicles ultimately depends on the health of the economy.
The Bank of Canada, predicts that Canada's GDP will rise a modest 2.3 per cent this year. This, coupled with a continuation of low interest rates, should be enough to maintain the economy's current momentum and keep consumer confidence from waning.
In 2008, I expect that certain consumer advocacy groups will continue to portray our industry in a negative light. Fortunately, one special interest group or another does not easily sway the public. Today's car buyers are media-savvy and absorb information from multiple sources before drawing their own conclusions.
As my final bit of crystal-ball gazing for 2008, I'd point to the continuing expansion and evolution of new-car dealerships.
New state-of-the-art facilities continue to spring up across the GTA, providing optimum working environments for employees, and pleasant buying experiences for customers.
Today's expansive dealerships are also attracting more young people who want to pursue careers in the retail automotive sector. If you're looking for an exciting career in an industry with plenty of upside, this is the place to be!
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