BC drivers seem willing to increase their personal debt levels to new heights to get a new ride.
TransUnion recently reported that average consumer debt in B.C. edged up 0.2% in 2012’s second quarter to an average of $37,879 from $37,433 in the year’s first quarter.
Year over year, personal non-mortgage debt has increased 2.9% in B.C., rising at the same rate as those in Ontario and just below loan growth of 3% in Saskatchewan.
Nationally, the report noted the biggest areas of debt growth have been in auto financing, which has risen 13.25% over the past year, compared with marginal growth in instalment loans and slight declines in credit card debt and personal lines of credit.
These figures coincide with a significant jump in new vehicle sales in B.C.
According to Statistics Canada’s latest retail sales data, auto sales have remained buoyant, staying above 18,400 units in both May and June and well above the 15,550 sold in April.
So far this year, the number of new vehicles sold has risen about 14%. More than 91,000 units were sold between January and June compared with about 80,000 units in the same period in 2011.
Most of the new cars appear to be replacing the aging vehicles of B.C. drivers. Since the financial crisis in 2008, only about 14% of all the new vehicles bought are additional passenger vehicles hitting the road in B.C.
That compares with a 21% average annual increase in new vehicle registrations between 2001 and 2007, based on ICBC data compiled by BC Stats.
The increased sales would seem to buck the trend of declining auto sales and stagnant retail sales in Canada.
Central 1 Credit Union forecasts total vehicle sales in B.C. to rise 9% in 2012 to about 175,000 units.
While it expects sales levels to temper, it won’t necessarily be for financial reasons.
TransUnion’s report noted that B.C. had the lowest level of auto loan delinquency at 0.06%. •
