October vehicle sales were down 0.3%, not a huge amount but it still amounts to a continuation of a trend that began emerging in September. Canada ’s economy has stalled – in fact aside for Quebec , vehicle sales were off in every province with Alberta the winner at -8%.
One question not addressed here, is the change in VAT tax in certain provinces, which may have accelerated vehicle purchase in the summer of 2010 to take advantage of the lower tax level.
Although the figures are not seasonally adjusted, in 2007, 2008 and 2009, vehicle sales actually rose in the closing months of the year (it makes sense as dealers try to unload “previous years’ model”). Anyway, September was flat and October was down slightly (against trend).