New vehicle sales for April reach historic level

New vehicle sales for April reach historic level

It would appear that demand for new vehicles is continuing to grow, with last month’s new vehicle sales figures reaching the highest level on record for the month of April.

Data released by the Federal Chamber of Automotive Industries (FCAI) revealed that the total sales for the month of April 2021 were 92,347, while just 38,926 sales were recorded in the corresponding month in 2020.

These results also make April 2021 the sixth consecutive month of growth, following 31 months of declining figures.

FCAI’s chief executive, Tony Weber, said that confidence in the new vehicle market was high, and could be expected to continue to grow through the remainder of the year.

“New vehicles sales are a direct reflection of the performance of the broader economy in terms of consumer and business confidence,” Mr Weber said.

“This time last year, we were seeing significant impacts from COVID-19, with less customer activity and enquiries to dealerships.

“Historically, the April result is between 70,000 and 80,000 vehicles, so the 2021 result is very significant.”

According to Mr Weber, supply chain constraints – such as a shortage of semiconductors and shipping issues related to delays through the Suez Canal – were impacting the delivery of new vehicles to Australian customers.

“Every vehicle company is focused on solving the issues caused by these impacts, and they are working with customers to keep them fully informed regarding supply issues and delivery dates,” he said.

“It is possible there is pent up market demand which may be reflected in sales figures in the second half of 2021 as solutions are found to these issues.”

Meanwhile, the used car market has also seen a significant increase in demand, with wholesale used-vehicle prices 37 per cent higher in March than a pre-pandemic high set in February 2020.

Constrained new vehicle supply is seen as one of a range of factors influencing this increase.

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Learn more about car loans

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!

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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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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.

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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. 

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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.

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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.

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