Used cars as a means of predicting the future? Perhaps.
Nov 11, 2009 
Is the Canadian economy making its comeback? The signs point to 'maybe'.
A recent report by Scotiabank on the health and status of the auto industry contained some good news. The Global Auto Report states that Canadians are showing more confidence in the economy lately, and this is a very good thing. Indications in the used market are that prices are strengthening, and this points to a recovery not only in the used car market, but also in Canada's new car market, and the economy as a whole.
The report’s author, Scotiabank auto-industry analyst Carlos Gomes, recently noted that there are a few indications of positive trends.
"Cyclical turning points in pre-owned vehicle prices lead directional changes in the new car and light truck market by three to six months, reinforcing our view that the outlook for new vehicle sales has improved significantly and that a sustained cyclical recovery is underway," Gomes said in his report.
He has also noted that used car values have been steadily growing since May of this year. Which in itself is some pretty good news, because they had been falling for 18 months previously.
Proof of this trend is shown in the sales figures, where here in Canada, purchases of new cars and light trucks exceeded an annualized rate of 1.5 million units for the third consecutive month. This marks the best performance since last October, before the 2008 sales figures began their heavy slide toward negativity.
The report states that the used car market, functioning as a leading indicator of overall economic activity, reflects changes in credit availability as well as a rise in household confidence.
So … good news, right? Maybe this means some Canadians will be unwrapping their gifts in the driveway, rather than under the tree. I’m hoping this happens at my house.
[Source: Canwest News Service Via Winnipeg Free Press Autos]
[Photo: KB35 on flickr]
Canada, Canadian economy, used cars in Used cars 
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