Luxury vehicles accounted for almost 12 per cent of car sales in Canada in 2017. (Richard Drew/Associated Press)
Luxury car sales jumped 12% in 2017 and forecast to climb 7% in 2018
Jas Takhar is on the hunt for a new luxury car.
The Toronto real estate agent has been renting cars since the lease on his vehicle expired two months ago so he can take his time to pick the right brand.
The 36-year-old car enthusiast said he’s been eagerly awaiting next week’s Toronto auto show to help him decide.
“I’ll spend a day there and see the four-five cars that are flirting around in my head,” Takhar said. “And then I’ll go to a dealership, test drive them and get it.”
With a budget of $95,000, he’s considering brands like Audi, BMW, Lexus and Mercedes-Benz. Takhar is one of many Canadians who are spending more to go upmarket into the luxury car segment.
Analysts said a combination of a strong economy with good job growth, affordable financing and more new vehicles on the market has led the luxury segment to outpace sales growth in the overall auto sector in recent years.
Record sales
“It’s not a huge piece of the overall market, but it has been growing more rapidly than overall vehicle sales, which of course on the whole, has been setting records for five consecutive years now,” said Michael Hatch, chief economist at the Canadian Automobile Dealers Association (CADA).
For the first time ev...