Aussies buying more cars, making more purchase plans

Aussies buying more cars, making more purchase plans

The latest trend data from the Australian Bureau of Statistics (ABS) shows an increase in new car purchases over the past month. Meanwhile, more Australians are making plans to buy a new car in the next four years, according to Roy Morgan research.

The latest ABS Sales of New Motor Vehicles stats indicate that Aussies bought 0.3% more cars nationwide in August 2017 than in July 2017.

This follows a dip in new car sales experienced in July 2017.

In annual trend terms, the numbers went up by 2.7%, an improvement on the 1.8% recorded in July 2017.

Looking state by state, the largest upward movement recorded on a monthly trend basis was in the Northern Territory (0.9%), continuing an upward trend that began in January 2017.  The largest downward movement recorded on a trend basis was in Tasmania (-0.6%).

Region August sales Monthly change Annual change
NSW 33416 0% 1.2%
VIC 28,806 0.7% 4.6%
QLD 20,078 0.3% 4.6%
SA 6206 0.4% 4.1%
WA 8176 0.7% -1.3%
TAS 1556 -0.6% -8.8%
NT 976 0.9% 9.4%
ACT 1594 0.3% 4.9%
National 100,809 0.3% 2.7%

These figures continue the broadly upward trend in car sales that has been taking place ever since the GFC, when the market experienced a significant slump.

Car sale numbers to rise higher?

Looking to the future, a Roy Morgan survey has found that 2.457 million Australians intend to purchase a new car in the next four years – an increase of 53,000 from July, and only marginally lower than the fifteen-year high recorded in February 2017.

In the shorter-term future, the number of Australians intending to purchase a new car in the next 12 months was also found to have increased by 9.2% over the last quarter to 679,000.

According to Roy Morgan Research industry communications director, Norman Morris, Australians intending to purchase a new car over the next 12 months had a much higher level of consumer confidence than the population average.

“Over the last three months, there has been considerable optimism in the new car market as shown by the steady increase in buying intentions for the next four years and strong confidence among new car buyers. Although VFacts sales to August are only up marginally on last year, strong intention levels indicate that it is likely to be another good year for the industry.”

Mr Morris added that the increase in new vehicle intentions was primarily driven by a continuing market trend towards SUVs, light SUVs and light commercial vehicles, with passenger vehicle intentions remaining unchanged. 

This broadly corresponds with the ABS findings, which saw sales for SUVs and Other vehicles increase by 0.8% and 0.7% respectively between July 2017 and August 2017, while Passenger vehicles decreased by 0.4%.

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Learn more about car loans

What is dealer finance?

Dealer finance is a car loan organised through a car dealer – as opposed to car loans organised by a finance broker or directly by the lender.

What is a dealership?

A dealership is a car yard or a place where cars are sold.

What is proof of income?

Before giving you a car loan, lenders will ask for proof of income – documentary evidence that you earn as much as you claim you earn. Lenders will typically want some combination of tax returns, pay slips and bank statements. The reason lenders want proof of income is because they want to be sure you have the means to repay the car loan.

What is CTP insurance?

CTP insurance, also known as compulsory third-party insurance or a green slip, is compulsory if you want to register a vehicle in Australia. If you’re responsible for a car accident, your CTP insurance will be used to pay any compensation due to anyone who might be injured or killed. However, CTP insurance doesn’t cover you for vehicle damage or theft.

How to get a chattel mortgage?

Both businesses and individuals may use a chattel mortgage, provided that the car is being used predominantly for business purposes. 

To apply for a chattel mortgage, you need to first consider your options and choose a suitable lender that meets your requirements. Once you have selected a lender, you can apply for the loan online by filling out a form. If the lender doesn’t offer an online application process, you can either call them or visit their nearest branch. 

After you’ve applied, the lender will ask you to supply documents that confirm your identification, income, job profile, etc. If everything is in order, most lenders will arrange the loan’s settlement, so all you need to do is pick up your car!

Can you get a chattel mortgage with bad credit?

Getting approval for a chattel mortgage with bad credit may be possible, given ‘chattel’ (usually a piece of equipment or car) is put up as security for the loan. That means if you fail to repay the loan, the creditor can recover the loaned amount by repossessing and selling the car or piece of equipment. This differs from unsecured car loans, where the asset is not tied to the loan and cannot be taken if you don’t meet the repayments. 

How much is your car worth?

If you already own a car, you could potentially bring down the cost by selling your car in the process. Before that happens, though, you’ll need to find out how much your car is worth.

One of the first places to find this value is to research the value of your current car, giving you an idea of roughly how much it’s worth in its peak condition.

There are plenty of websites that offer a free online valuation, allowing you to enter your car’s make, model, year, badge and description, with results listing a price guide based on both selling your car privately and through a dealership.

Of course, dealerships will try to profit on your trade-in by buying it for less than they can sell it, making it highly unlikely that you’ll get the same price selling a car to a dealer as you would selling a car privately.

However, private car sales can be costly and can take months to sell, making car trading more convenient with a guaranteed return, even if you may not be able to realise the total value of your car’s worth.

Remember that everything is negotiable. If the dealership is offering you less for your trade than you wanted, try to negotiate elsewhere to gain that money back. Start by negotiating on the price of the trade and then ask them if they can give you a further discount on your new car.

What is a car loan?

A car loan, also known as vehicle finance, is money that a consumer borrows with the express purpose of buying a vehicle, such as a car, motorbike, van, truck or campervan. Car loans can be used for both new and used vehicles.

How much can I get towards a new car as a single parent?

It really depends on your financial circumstances as to how much a lender will grant you towards a new car as a single parent. With most lenders, the smaller the loan you apply for, the higher your chances are of approval, so getting a cheaper car or adding some savings of your own, may be a valid option if you are struggling for approval on a car loan.

How much can I get towards a new car as a single parent?

It really depends on your financial circumstances as to how much a lender will grant you towards a new car as a single parent. With most lenders, the smaller the loan you apply for, the higher your chances are of approval, so getting a cheaper car or adding some savings of your own, may be a valid option if you are struggling for approval on a car loan.

How much is my car worth?

If you own a car, it may be something that can help you bring down the cost of your next vehicle purchase through its sale. However, before you can do that you’ll want to find out how much your car is worth.

Your car’s worth can depend upon various aspects, including:

  • Age
  • Condition
  • Model and make

A great starting place for aspects of this includes websites that offer online valuations, allowing you to enter your car’s make, model, year, badge and description, with the listed results displaying a price guide based on both selling your car privately and through a dealership.

Both have pros and cons, as cars can be very profitable, something that will no doubt impact any chance you have to make the most of your car’s value upon sale. Dealerships will try to profit on your trade-in by buying it for less than they can sell it for, so you shouldn’t expect the same price selling a car to a dealer that you would necessarily get selling a car privately.

What is the luxury car tax?

The federal government imposes a luxury car tax of 33 per cent on the value of a car above a threshold. As of the 2017-18 financial year, that threshold was $75,526 for fuel-efficient vehicles and $65,094 for other vehicles. So a fuel-efficient car worth $80,000 would be taxed only on the difference between the threshold and the value of the car ($4,474), rather than taxed on the entire $80,000. Similarly, an ordinary car worth $70,000 would be taxed on the $4,906 above the threshold, rather than the entire $70,000. The luxury car tax is paid by dealers that sell or import luxury cars, and also by individuals who import luxury cars.

Can I buy a car as a student?

Buying a car is a huge financial decision, and shy of marriage and purchasing a house (or perhaps around the world travels), it may be the biggest financial decision you make. But if you’re looking at your empty pockets, don’t despair! Your dream of owning your own car could become a reality, if you look for and compare the right car loans for your circumstances.

What is a CHP?

A CHP, or commercial hire purchase, is an arrangement by which a finance company buys a car on your behalf. You get to borrow the car in return for making regular payments to the financier. Once the final payment is made, you take ownership of the car.