The growing importance of high-quality debt protection for Canadian automotive consumers
Our recent market research shows that debt protection is more relevant amongst Canadian automotive consumers than ever before. Investing in high-quality debt protection products helps boost consumer confidence by protecting them from the unexpected. We surveyed over 1,100 Canadians across the country, all of whom were planning a vehicle purchase within the next two years.
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86% of consumers say they want the option to return their vehicle, and 79% want the option to have vehicle payments made for them.
How are Canadians buying their vehicles?
When asked how consumers are planning to purchase a vehicle, here is what respondents had to say:
- 40% are planning to finance through the dealership
- 32% are planning a cash purchase
- 10% are planning to finance through another loan-type outside of the dealership
- 10% are planning to lease
- 8% are planning to use their personal line of credit to finance their purchase
When asked if consumers are buying a new or used vehicle:
- 73% said new
- 27% said used
When asked how much consumers are planning to spend on their next vehicle, respondents said:
- Less than $25,000 – 26%
- $25,000-$45,000 – 45%
- $45,000-$65,000 – 19%
- $65,000-$85,000 – 7%
- More than $85,000 – 3%
60% of Canadians surveyed say the current state of the economy makes them concerned about their next vehicle purchase. Over 30% also fear potential job loss.
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What is influencing consumer buying decisions?
When asked which factors make Canadian consumers feel concerned about their next vehicle purchase, most cited the economy’s current state, with over 30% also selecting potential job loss.
- The current state of the economy – 60%
- Potential job loss – 31%
- Environmental impacts – 17%
- Their age – 17%
- Potential critical illness – 14%
- Potential physical disability – 9%
- Self-employed bankruptcy – 5%
When we asked if respondents would feel more comfortable purchasing their vehicle with coverage that allowed them to return it if something unexpected happens (e.g. job loss, critical illness, physical disability):
- 86% said yes
- 14% said no
When respondents were asked if they would feel more comfortable purchasing their vehicle with coverage that would cover the cost of their monthly payments if something unexpected happens (e.g. job loss, critical illness, physical disability):
- 79% said yes
- 21% said no
When asked who consumers would feel comfortable purchasing these products from, the majority selected a representative at the dealership. Many would also feel comfortable purchasing through a licensed insurance broker:
- The representative at the dealership – 45%
- A licensed insurance broker – 41%
- A financial institution (e.g. bank) – 36%
- The automobile manufacturer or its finance division (e.g. Toyota Credit Canada) – 34%
- Directly online (self-serve) – 18%
How can WALKAWAY help boost consumers’ confidence?
With the increase in negative equity affecting Canadian consumers every day, the need for high-quality debt protection solutions for the average vehicle purchaser becomes more relevant than ever before. As Canadians continue to spend more, take on more debt, and embrace longer financing or leasing terms, high-quality debt protection is the safest way to counter the effects of negative equity should something unforeseen happen.
WALKAWAY Finance Protection™ is the world’s first debt-protection program that provides consumers with the financial flexibility they need when an unexpected life event occurs. It offers consumers a cost-effective way of structuring their automotive lease or finance contract, so they have options in a time of need. WALKAWAY Finance Protection™ is the original vehicle return program that pioneered a new industry. WALKAWAY Finance Protection™ products help people get out of vehicle loans and leases when they experience one of the life events the program covers.
This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information. This represents a summary of coverages and does not form a part of the certificate of insurance. Please consult your certificate for complete details regarding how you qualify. Employment-related coverages (excluding disability) begin on the 91st day. International Job Transfer is not available to residents of Alberta or Saskatchewan. Accidental Death is not available to residents of British Columbia. Self Employed Bankruptcy is not available to residents of Saskatchewan. Copyright © 2021, under licence to Insurance Insight Inc. All rights reserved, unauthorized use, reproduction, or disclosure is prohibited.
