December 17, 2007
Industry-wide retail turn rate improves, says J.D. Power
Toronto, Ontario – A new report by J.D. Power and Associates says that the average retail turn rate for Canadian new vehicles – the time they sit on the lot before being sold – has declined by 3 days to 61 days, a positive sign for the industry. All four crossover segments have turn rates better than the industry average, although the rate for the Compact Premium CUV segment has deteriorated.
In contrast, the turn rates for all five utility segments have declined, and are now worse than the industry average. The trend for crossover and utility vehicles reflects the steadily-growing appeal of car-based vehicles, at the expense of traditional truck-based SUVs.
Still, the report says that frame-based pickups continue to hold their own; large, non-luxury pickups now turn three and a half weeks faster than they did a year ago, and large luxury pickups are turning more quickly as well. The results are driven by the strong Canadian housing sector and the success of the recently-introduced, full-size Tundra.
Both the Compact Conventional and Basic Compact car segments, which offer the smallest cars on the market, have experienced a slowdown. Nevertheless, their turn rates remain better than the industry average.