Canadians are driving less, and aren't planning to buy a new vehicle soon

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The COVID-19 pandemic has changed most people’s lives in most ways, and that includes in their driving. Canadians are spending less time behind the wheel and reassessing their need for a new vehicle, according to a new report by Canadian Black Book (CBB).

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Of those surveyed, 76 per cent are driving less. Regionally, Albertans are staying home the most, with 84 per cent driving less; overall, those 55 and older, and those in households making over $100,000 per year, are getting behind the wheel less often. The most common reasons are people working from home; and lockdown restrictions.

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Those who are driving less don’t see as much of a need to replace their current vehicles. When asked if they intended to buy a new vehicle in the next two years, 44 per cent said they were likely — down from 52 per cent pre-pandemic.

What they’ll be buying has also changed, with 30 per cent likely to buy an electric car, or plug-in hybrid, within the next five years. In last year’s study, conducted prior to widespread pandemic measures, 37 per cent expressed an intent to buy an electric vehicle. Of those who would buy one, the highest numbers were in Quebec, followed by Ontario.

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Going “green”

That’s in contrast to a recently-released survey by KPMG, which found that among those intending to buy in the next five years, 68 per cent would go for an electrified vehicle — although note that KPMG mentioned battery-electrics and hybrids, not specifically plug-in hybrids. But the highest number of those interested were in provinces that offer “green” rebates on top of existing federal ones — with British Columbians most likely, in contrast to CBB’s survey, followed by Quebecers. KPMG’s survey also found that 54 per cent of Albertans were interested in electric vehicles, but CBB reported only 22 per cent of them were.

Both surveys found that men are more interested in an EV than women are. The highest levels of interest in CBB’s survey came from those aged 18 to 34, and from university graduates.

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Backing away from public transit

Canadian Black Book also found that 8 per cent of Canadians rely on ride-hailing services rather than own a vehicle, down from 11 per cent in 2020; and 17 per cent use transit instead of buying a car, with the majority of those aged 18 to 34. Pandemic concerns seem to be taking their toll, however — going forward, 45 per cent of respondents are less likely to use public transit in the future, while 42 per cent are less likely to use ride-hailing services over the next 12 months.

And even though many people are buying many products online, much of the car-buying process still remains traditional. Only 26 per cent would be willing to do it all online, while 74 per cent prefer to see a vehicle in-person before signing on the dotted line. The majority also said that they’d feel safe visiting a dealership, providing it adhered to the public health guidelines in their area.

LISTEN: We kick off Season 4 with at look at new EVs available in Canada.

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