Number of Motor Vehicle Registrations

New car sales and registrations typically grow and contract along with the economy as a whole. Vehicles are a durable good, meaning consumers typically only purchase them when they feel secure with their financial condition. Overall, the number of motor vehicle registration exhibited relatively stable growth, as adverse effects on disposable income and consumer confidence due to the recession dissipated. Over the five years following the recession, per capita disposable income growth never dropped below the positive mark, despite marginal decline in 2011. During this same period, however, consumer confidence lagged as consumers remained somewhat hesitant of economic performance and therefore held back on large purchases. This changed in 2013, when consumer confidence rose significantly, coinciding with the largest increase of motor vehicle registrations since 2007.

Although registrations continued growing strongly through 2014, registration growth has slowed since. The rapid fall in crude oil prices over 2015 resulted in major oil companies revising their estimates and adjusting for lackluster performance by enacting hiring freezes, layoffs and pulling out of investments. Although this seems particular and overall oil price declines should benefit consumers, oil companies are large employers in major Canadian provinces such as Alberta. Contributing to this muted growth is the economy's place in the expansion cycle. This slowed growth in 2015 and into 2016, as the economy stagnated, but consumers and businesses remained able to spend on vehicles as interests rates remained low and credit was easily accessible. despite slowed growth in 2017, the number of registrations exhibited strong growth in 2018 and 2019 as the economy expanded, disposable income grew and consumer confidence rose. This growth was across all vehicle types, but particularly trailers and construction and farm vehicles. In 2020, however, the global COVID-19 (coronavirus) pandemic caused global shutdowns, reducing consumer spending and confidence, thus leading to a dramatic decline in new car sales. Despite declines in new car sales, strong growth in new car sales prior to the pandemic have required ongoing registration renewals, leading to mitigated pandemic-related impacts, slowing to increase just 1.6% in 2020 alone. Due to the coronavirus pandemic, interest rates were brought to near zero to promote spending. As a result, new car sales increased as consumers were able to purchase vehicles with increased consumer spending and low interest. In early 2022, inflation rose to new heights due to increased economic activity. To combat rising inflation the Bank of Canada has aggressively raised interest rates. Despite the high interest rates, vehicle registration remained elevated as a result of the high period of car sales in 2021. Despite rates remaining high, banks have become more accommodative for car-loans during 2023 and 2024, which has enabled consumers to continue to purchase vehicles, and in turn, increase the number of motor vehicle registrations. This is anticipated to continue into 2025, as the Bank of Canada cuts rates.