A report has found that the number of luxury vehicles in Vancouver has significantly increased in recent years; the news comes as the provincial public insurer previously announced that it would drop coverage for cars valued at more than $150,000.
Data from Statistics Canada reveals that between 2013 and 2016, the annual dollar value of vehicle sales in B.C. and the territories surged by 35%. The yearly number of sales grew too – at a rate of about 20% over the same period.
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Izzam Ahamed, a general manager for Vancouver-based dealership Regency Lexus, believes that the region’s famously high real estate prices might have a hand in influencing the luxury car trend.
“People’s perceived wealth has definitely increased with the price of their homes,” Ahamed told Vancouver Sun. “They feel that … they deserve to be driving a Lexus or any other premium brand.”
According to statistics provided by Ahamed, the Lower Mainland saw a 28% increase in the number of sales of luxury vehicles in the period between 2014 and 2016.
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Another dealership general manager, Mark Edmonds of Ferrari Maserati, pointed out that many high-end automakers are currently offering models with more accessible prices, allowing even those who are not as well-off to own cars from luxury brands.
“I’m born and raised in Vancouver, and when I was a kid there was one parent on my hockey team that had a Mercedes, and you never saw a Ferrari and you rarely saw a Porsche. A Lamborghini was like a UFO,” Edmonds said. “Nowadays, everybody has a Mercedes, everybody has a BMW. Now those people who used to buy Mercedes or BMWs try and be a bit different . . . they need to go somewhere else.”
Starting this year, owners of vehicles worth over $150,000 will have to pay more than double the standard rates for basic insurance, as the Insurance Corporation of BC (ICBC) attempts to distance itself from covering such luxury automobiles.
Despite the ICBC’s plans, insurers based in the US have voiced their interest in continuing their coverage for BC’s luxury cars.
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BC transportation minister says luxury car coverage drop is not final
