Cars flying off the lot across Australia

Cars flying off the lot across Australia

Australia could post its fourth consecutive year of record car sales, according to new data from the Federal Chamber of Automotive Industries.

There were 95,221 vehicle sales in August – down 1.5 per cent on the previous year, but still the second-best August result in history.

There were 786,294 vehicle sales in the first eight months of 2018, which was just 0.3 per cent lower than the first eight months of 2017.

Best-selling vehicles in August

  1. Toyota Hilux = 4,275
  2. Ford Ranger = 3,515
  3. Toyota Corolla = 3,033
  4. Mazda3 = 2,969
  5. Mazda CX-5 = 2,599

In the first eight months, sales climbed in three states – Tasmania by 12.2 per cent, South Australia by 1.5 per cent and Victoria by 0.5 per cent.

However, sales fell by 9.7 per cent in the Northern Territory, 5.1 per cent in the ACT, 4.1 per cent in New South Wales, 3.9 per cent in Western Australia and 0.3 per cent in Queensland.

So far in 2018, SUVs have accounted for 42.8 per cent of sales, passenger cars 33.6 per cent and light commercial vehicles 20.2 per cent.

Highest market share in August

  1. Toyota = 19.8 per cent
  2. Mazda = 11.3 per cent
  3. Hyundai = 8.4 per cent
  4. Mitsubishi = 7.4 per cent
  5. Ford = 6.3 per cent

Federal Chamber of Automotive Industries chief executive Tony Weber said people were still buying cars, despite property prices falling in some areas and a drought afflicting others.

“It’s important to remember that the 2017 total was the third record year in a row for the industry and, year to date, we are sitting just 0.3 per cent below that record pace again,” he said.

“By any measure, that indicates there’s resilience and continued demand in the market. It also means we are still within striking distance of another record year.”

Some of the cheapest car loans in Australia

Lender Advertised rate Comparison rate
360 Finance 4.69% 5.60%
Mortgage House 4.99% 6.28%
Illawarra Credit Union 5.25% 5.89%
Bank First 5.29% 5.50%
Community First Credit Union 5.34% 6.10%

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Learn more about car loans

What is depreciation?

Depreciation is the reduction in the value of your car. Almost every car loses value each year, although at different rates. As a guide, cars depreciate on average by 14 per cent per year in the first three years and then eight per cent per year after that.

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!

What is resale value?

The resale value is the price you could realistically charge if you were to sell your car. Almost every car loses value each year, although at different rates. As a guide, cars depreciate on average by 14 per cent per year in the first three years and then eight per cent per year after that.

What is a variable-rate loan?

A variable-rate loan is one where the lender can change the interest rate whenever it wants. For example, if you sign up for a variable-rate loan at 8.75 per cent, the lender might change the interest rate to 8.90 per cent the month after and then 8.65 per cent the month after that. By contrast, if you take out a five-year fixed-rate loan at 8.75 per cent, the lender is obliged to leave your interest rate at 8.75 per cent for at least five years.

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. 

What is repayment frequency?

Repayment frequency is how regularly you have to make car loan repayments to your lender. The most common repayment frequency is monthly, but many lenders will also give you the option of making fortnightly or weekly repayments.

What is a pink slip?

A pink slip is another name for the safety check that needs to be done before a car owner can renew the vehicle’s registration.

What is a car lease?

A car lease, also known as an asset lease or finance lease, 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. At the end of the lease, you can either buy the car or hand it back. 

What is a car loan calculator?

A car loan calculator is an online tool that helps consumers understand how much they would have to repay under different scenarios. Consumers can create these different scenarios by entering different borrowing amounts, interest rates, loan terms and repayment schedules into the car loan calculator.

How much can I borrow with a car loan?

There’s no set number. That’s because borrowing capacity differs from person to person, as well as lender to lender.

Lenders don’t give out car loans unless they’re confident they’ll be repaid. Each person is different, so the amount of money one person can successfully borrow will differ from another person’s number. Also, each lender uses its own formulas to calculate borrowing capacity – so Mr & Mrs Smith might find that while Lender X will give them a car loan for $20,000, Lender Y will offer only $18,000.

What is a comparison rate?

The comparison rate is known as the ‘real’ interest rate you have to pay – unlike the advertised interest rate, which is often an artificially low number. That’s because the comparison rate includes both the advertised rate and the associated fees. According to the industry standard, comparison rate calculations are made on the assumption that the car loan will be for $30,000 over five years.

What is a loan term?

The loan term is the amount of time the lender gives you to repay the car loan. For example, if you take out a $20,000 car loan with a five-year loan term, you would be expected to pay off the entire $20,000 (plus interest) within five years.

What is an LVR?

The LVR, or loan-to-value ratio, is a percentage that expresses the amount of money owed on the car compared to the value of the car. For example, if you take out a $15,000 loan to buy a $20,000 car, you have an LVR of 75 per cent. LVRs change over time as you pay off your loan and your car depreciates in value. For example, two years later you might now owe $10,000 on your car, which might now be worth $15,000. In that case, although there would still be a $5,000 difference between the size of the outstanding loan and the value of the car, the LVR would now be 67 per cent.

What is stamp duty?

Stamp duty, or motor vehicle duty, is a tax you pay when you transfer a car into your name. Stamp duty applies to both new and used cars. Stamp duty is a state tax, so rates and conditions vary from state to state: New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, ACT and Northern Territory.