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Canadian car sales reached new high in 2013

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Light vehicle sales (excluding trucks larger than the standard pickup) jumped from 1.68 million units in 2012 to 1.74 million units in 2013, marking a third consecutive yearly increase according to a new report by BMO Economics.

"A solid model lineup and new offerings from manufacturers at very generous financing terms will continue to generate interest from the Canadian consumer," said Alex Koustas, Economist, BMO Capital Markets. "Sales activity will remain brisk, but will likely drop off last year's pace given rising ownership rates and more elevated debt levels. Nevertheless an overheating is unlikely as long as financing terms remain balanced."

The most determining factors were an increase in lease activity and car loans, as well as stronger competition between automakers, which strive to offer more technologies, performance, and fuel economy than ever.

Source : BMO