Luxury car sales in Australia rev up

author-avatar By on February 14, 2020
Luxury car sales in Australia rev up

Photo by Spencer Davis on Unsplash

Cashed up buyers are speeding to the dealership, with luxury vehicle sales rising for the seventh consecutive month. 

In January 2020, the annual total of luxury vehicle sales rose 0.1% to 88,473 vehicles sold, according to the CommSec Luxury vehicle index which has now risen for seven months.

According to CommSec Chief Economist Craig James, the rise in luxury car sales exactly matches the gains in house prices. 

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Source: CommSec

"The wealth effect of higher home prices, the cuts in interest rates and the rise in household asset values has allowed top end buyers to update their rides," Mr James said.

Mr James noted there's a chance the continual rise in luxury car sales will translate to the rest of the lagging vehicle market, with new car sales figures underperforming for the better part of the last two years. 

"The hope is that the strength at the top end of new vehicle and housing markets will extend to broader strength for new vehicle sales, home sales and home prices," he said. 

To gauge luxury car sales, CommSec tracks the sales of Aston Martin, Audi, BMW, Bentley, Ferrari, Hummer, Jaguar, Lamborghini, Lexus, Lotus, McLaren, Maserati, Maybach, Mercedes-Benz, Morgan, Porsche, and Rolls Royce. 

According to the figures, many luxury car buyers prefer to purchase quality used vehicles rather than new vehicles. Loans to buy new cars in December were up 6% on a year ago which is the fastest gain in almost three years.

Annual sales of Lexus were at all time highs in the year to January, and sales of Rolls Royce were just shy of reaching record highs. 

Looking for a new car? The following car loans have some of the lowest fixed-rates on the market:

Lender
Advertised rate Comparison rate Monthly repayment Interest TypeVehicle TypeMaximum Vehicle AgeOngoing FeeApplication FeeTotal RepaymentEarly RepaymentInstant ApprovalOnline Application

FixedNew4 yearsMore details
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Car Loan (New and Dealer Used) (< 5 years)

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FixedNew2 yearsMore details
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New Vehicle Fast Loan Low Rate

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  • Low fixed interest rates with terms of up to seven years
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FixedNew, Used99 yearsMore details
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FixedNew, Used7 yearsMore details
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Rates based on a loan of $30,000 for a five-year loan term. Products sorted by advertised rate. Rates correct as of October 27, 2021. View disclaimer.


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): Great Southern Bank, 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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author-avatar
Emma Duffy is Assistant Editor at Your Mortgage and  Your Investment Property Mag, which are part of the Savings Media Group. In this role, she manages a team of journalists and expert contributors committed to keeping readers informed about the latest home loan and finance news and trends, as well as providing in-depth property guides. She is also a finance journalist at Savings.com.au which she joined shortly after its launch in early 2019. Emma has a Bachelor in Journalism and has been published in several other publications and been featured on radio.

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