New auto sales will reach 1.76 million in 2014, topping a record-setting 1.74 million vehicles sold last year in Canada.
The latest Scotiabank Global Auto Report also shows that Western Canada led the way in terms of gains even though every region posted higher sales in 2013.
Carlos Gomes, Scotiabank's Senior Economist and Auto Industry Specialist says: "New vehicle affordability in Canada is at the best level in two decades, partly linked to manufacturer incentives, and consumer confidence is expected to strengthen as the pace of job creation picks up."
Analysts point out that redesigned vehicles with greater amenities, better fuel efficiency and technological advances will continue to appeal to prospective buyers and so will the generous lending terms.
According to data from the Canadian Automotive Dealers Association, 90% of new car buyers finance their purchases. Additionally, J.D. Power finds that 58% of car buyers are choosing terms of six years or more instead of opting for the three or four year loan periods that used to be a standard practice a few years ago.