What matters most to Canadians when buying a car

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Why do Canadians make the vehicle purchases they do?

Some in the financial services industry would point to the superficiality of choices, resulting in people buying a much larger vehicle than they need and overextending their budget in the process.

Data, such as average monthly car payments of $915 in Canada for a new vehicle, according to Finder.com, speak to that viewpoint.

Dan Park, chief executive officer of online used car retailer Clutch, has another perspective. He recently shared his July proprietary data from Environics Research about the factors that lead to specific vehicle choices.

The study featured responses representing more than 2,100 Canadians. Although features such as advanced technology definitely entice Canadians, reliability reigns supreme, as does a vehicle that provides good mileage.

Mr. Park spoke with Globe Advisor recently about Canadians’ car buying habits.

When do people first start their vehicle purchase journey?

Our data found that, generally, people delay purchasing a car until there’s a big life event, such as getting a new job, getting married or having kids. Because people are delaying their car purchases, they’re opting for a larger vehicle, generally SUVs.

Why is there such a love affair with SUVs?

One vehicle is expected to do everything. In our interviews with used car buyers, they rate the following things highly: winter traction, trunk space, safety, comfort and having enough room for family. Those themes suggest SUVs appeal because they combine several practical needs into one vehicle.

The preference for SUVs is partly structural and cultural. SUVs have become the default family car: they offer cargo and flexible interior space that people once found in station wagons and minivans, but in a body style that feels more contemporary. A higher seating position can make loading children or cargo, or getting in and out, easier while giving drivers a greater sense of visibility and security.

But the biggest reason is all wheel drive traction, which is more prevalent on SUVs, and the higher clearance that gives you a better driving perspective. You pull up behind a semitruck or a dump truck, and you’re at eye level. You’re able to see better around traffic.

One final reason is that there are just fewer cars on the market. Many manufacturers have discontinued sedans. That’s because SUVs have become more profitable for manufacturers.

Used vehicle prices are stabilizing but remain expensive compared with a decade ago. What options do you propose for consumers on a budget?

A three- to six-year-old car is the new sweet spot. You can get some great, affordable vehicles with fewer than 100,000 kilometres driven for less than $25,000.

With older cars, do consumers worry more about mechanical issues?

Over the past several years, the reliability and the quality of the build have been much stronger. It depends on mileage and how the car was driven. Purchasing a seven-year-old car still gets you a great value. Generally, seven years is also the last year in which you can still finance the purchase of a vehicle.

Our research found 80 per cent of buyers said a full inspection report was very important and 79 per cent said mechanic certification was. Those factors ranked ahead of affordability, which came in at 66 per cent. People aren’t just hunting for the cheapest car. They want proof they’re not inheriting someone else’s problem.

This interview has been edited and condensed.

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