Toronto, Ontario – The retail “turn rate,” indicating the average number of days a car sits on a dealer’s lot before being sold, is indicating signs of economic recovery in the Canadian new-vehicle market, according to a report by J.D. Power and Associates.
The new-vehicle turn rate, an indicator of selling velocity, was 51 days in October 2009, the lowest it has been in five months, and 12 days lower than in October 2008.
In June and July 2009, the retail turn rate was higher than a year ago, as the Canadian new-vehicle market battled a struggling economy. The trend reversal began in August with a two-day improvement, and then continued with a seven-day improvement in September.
Of the ten sub-segments with turn rates lower than the industry average in October 2009, all except for two were compact or midsize vehicle categories. The exceptions were large conventional and large pickup truck.
The compact CUV sub-segment, including vehicles such as the Ford Escape, Chevrolet Equinox, Honda CR-V and RAV4, has had a turn rate below 50 days in each of the past five months. As well, the midsize CUV sub-segment, such as the GMC Acadia, Ford Edge, Dodge Journey and Nissan Murano, has performed at or better than the industry average during the past three consecutive months. The large pickup sub-segment demonstrated its resiliency by dramatically outperforming the industry average in all five months.