RateCity.com.au
powering smart financial decisions

Australian SUV interest up, car sales overall down

Australian SUV interest up, car sales overall down

The need to buy a car in Australia isn’t as high as it once was, as car sales are down, even though interest in one particular car segment increased.

Australians may love their cars, but they’re not buying a whole lot of them lately, at least that’s what the stats are saying.

The Federal Chamber of Automotive Industries (FCAI) has released a report citing sales dropped in December 2018 by 14.9 per cent compared with the same month in 2017, a fall which resulted in 2018 selling just over a million sales, totalling 1,153,111 vehicles overall.

While the number of car sales have apparently dropped for the month, the FCAI has found that sales of Sports Utility Vehicles (SUV) have risen in comparison to passenger vehicles for the entire year.

“New vehicle sales results in 2018 reflect a challenging climate across the Australian economy including a slowing housing market, tightening of money lending and the drought,” said FCAI Chief Executive Tony Weber.

“Australian consumers continue to value the comfort, flexibility and utility of SUVs, which collectively accounted for 43 per cent of the market in 2018,” he said. “We predicted this trend to continue last year, and this has certainly been the case.”

Even though car sales are down, a trend of purchasing SUVs could lead to an increase in car loans, given the cost of some of the vehicles that are made available. Regardless of category, however, Toyota’s HiLux utility vehicle proved itself as the number one selling vehicle in Australia across all categories, followed by another ute in the Ford Ranger, and then by the Toyota Corolla, Mazda 3, and the Hyundai i30.

Did you find this helpful? Why not share this news?

Fact Checked -

This article was reviewed by Head of Content Leigh Stark before it was published as part of RateCity's Fact Check process.

Advertisement

RateCity
ratecity-newsletter

Money Health Newsletter

Subscribe for news, tips and expert opinions to help you make smarter financial decisions

By signing up, you agree to the RateCity Privacy Policy, Terms of Use and Disclaimer.

Advertisement

Learn more about car loans

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.

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 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.