Car sales down again, but some signs of positivity

Photo by Steven Striegel on Unsplash

October marked 31 consecutive months of new car sales declines, but sales were only 1.5% down compared to October last year.

Just over 81,000 new cars were sold Australia-wide in October 2020, slightly down on October 2019's sales of just over 82,000.

This is according to the latest Federal Chamber of Automotive Industries' (FCAI) 'VFACTS' report.

These figures look a lot better than September's dismal results, and many other months in 2020, as well as year-to-date sales down nearly a fifth compared to the corresponding period last year.

Many states had sizeable increases in sales compared to October 2019, with the only two states down: Tasmania (-16.1%), and Victoria (-28.3%). 

In the market for a new car? The table below features car loans with some of the lowest fixed interest rates on the market.

FCAI chief Tony Weber said easing coronavirus restrictions led to promising signs.

“Nationally, the state of industry operations is returning to normal as COVID-19 restrictions ease," he said.

"Additionally, Government initiatives such as a constructive budget that included the instant asset write off, along with more accessible finance for consumers, is also acting as a welcome stimulus for the industry.

"The green shoots that we are seeing in October give us great hope that we may begin to see further recovery during the coming months."

Sales were largely boosted by SUVs and light commercial vehicles (utes and vans), up 6.7% and 11.6% respectively when compared to October 2019.

Most notably, Upper Large SUVs are up 33%, and Light SUVs are up 27.5%.

The top five selling models for the month were:

• Toyota HiLux with 4,444 sales;
• Ford Ranger with 4,217 sales;
• Toyota RAV4 with 4,084 sales;
• Toyota Landcruiser with 2,429 sales; and
• Toyota Prado with 2,207 sales.

Overall, out of 81,220 total sales in October, 60,372 were SUVs or light commercial vehicles - approximately three quarters.

 

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Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

• The big four banks are: ANZ, CBA, NAB and Westpac
• The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2019. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
• The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
• If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*The Comparison rate is based on a $30,000 loan over 5 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

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