We are told by advertising agencies that we live in a "Me", "More", "Now" society. Consumers want to pamper themselves with as many consumer toys as possible and they want their toys today, thus the popularity of credit cards and the high debt levels in society. The motor vehicle industry plays on these themes with a proliferation of product every year designed to entice consumers into their showrooms. The development of leasing as the primary way to finance a vehicle also helps consumers acquire the vehicle of their dreams sooner and more often than otherwise would be possible.
But most Canadian consumers are very conservative with their vehicle buying and ownership habits. The most popular vehicles purchased each year in Canada are compact passenger cars like the Honda Civic and the new Ford Focus. On a market share basis Canadians purchase twice as many minivans then Americans and half as many sport utility vehicles. Yes, leasing is popular, but about half of the vehicles leased are purchased by the consumer at the end of the lease and driven for another five to six years. Indeed, the average length of vehicle ownership in Canada for product originally bought new is 8.4 years. And this is the average. About a third of consumers keep their vehicles for 11 to15 years. In Canada there are over five million vehicles on the road which are over 10 years old, about 30 percent of the total.
So for many consumers it is important to purchase a vehicle (new or used) which will last a long time. We are able to calculate survival rates for vehicles and the results are somewhat surprising. What we do is sum all the vehicles purchased 11 to 15 years ago (1984 to 1988 models) by brand name and compare this to how many are still on the road today.
Mercedes-Benz and Cadillac and most other luxury marquees are the clear winners when it comes to long lasting passenger cars. Over 90 percent of Mercedes-Benz, Cadillacs and BMWs sold 11 to 15 years ago are still on the road today. Volvo, Toyota, Honda, Mazda and Nissan are above the average.
But why do some vehicles last longer than others? Is it simply that some are better quality than others. There are a number of variables, besides quality, which play a role in survival rates and although quality is important it may not even be the top variable. Other variables would include:
