Mid-year slowdown in new vehicle sales

Mid-year slowdown in new vehicle sales

Australians bought fewer new vehicles in June 2018 than they did at the same time the previous year, according to the Federal Chamber of Automotive Industries (FCAI).  

Based on data from VFACTS, the new vehicles market is down 2.9% in June 2018 compared to June 2017. That said, the first half of 2018 saw the total vehicle market running 1% higher than the first six months of 2017.

The most popular vehicles in terms of sales in June 2018 were found to be light commercial vehicles, with the Toyota Hilux in the top spot, followed by the Ford Ranger and Mitsubishi Triton.

Light commercial vehicle sales were found to be up slightly in June 2018, improving 0.3% from June 2017, and holding a 21.8% share of the June market. Year to date, light commercial vehicles took up 20.3% of the total market, up from 19.8% for the first six months of 2017.

Vehicle category June 2018 sales (compared to June 2017) June 2018 market share
Passenger vehicles -17.9% 31.9%
Light commercial vehicles +0.3% 21.8%
Sports utility vehicles +9.3% 41.3%

Looking at vehicle sales numbers around Australia, only Tasmania saw an increase in June 2018 when compared to June 2017:

State/Territory Vehicle sales in June 2018 (compared to June 2017)
Tasmania +3%
New South Wales -4.5%
Victoria -1.5%
Queensland -1.7%
Northern Territory -3.5%
Western Australia -0.8%
South Australia -6.7%
Australian Capital Territory -10%

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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!

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

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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.

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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 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. 

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There are also costs associated with vehicle ownership, such as paying for petrol and the obligatory ongoing maintenance. But should you cut down on costs by servicing your own vehicle?

If you’re considering getting out the tool box, spanner, and grease-laden towel, you need to carefully weigh up the risks and benefits. A trained mechanic will need to complete certain tasks, while you may be perfectly capable to handle other aspects yourself.

If you’re short on time, it may be worth paying for the convenience of a full vehicle service. However if you’re trying to slash your expenses, there are some basic maintenance tasks that you can complete yourself.

You should call a mechanic if you’re unsure about a vehicle maintenance task you’re about to take on. However there are a number of maintenance tasks that you may be able to complete with your own two hands including:

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Remember to keep your car’s body in good condition, by washing and applying a protective wax on a regular basis, too.

Always check your car warranty agreement as some new car purchases come with an extended car warranty provided your services are conducted at the vehicle service centre where you purchased the car. In these circumstances, you may find the service fee is capped, alleviating some of the maintenance woes.

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