New car sales fall off a cliff in October

Emma Duffy By on November 6, 2019
 
new car sales

Photo by Jordan Bebek on Unsplash

New car sales have fallen by 9.1% in October compared to the same time last year, extending a downturn in the Australian car market which is now in its 19th consecutive month.

This means that 78,000 fewer cars were sold in the first ten months of this year, compared with October 2018.

A total of 82,456 cars were sold in October 2019.

The Federal Chamber of Automotive Industries (FCAI) released the new sales figures for the month.

FCAI chief executive Tony Weber said several factors are behind the lagging sales figures.

“While the drought and other domestic conditions are impacting the market, our key concern is the effect over-regulation of the financial sector is having on new vehicle sales,” Mr Weber said.

Source: FCAI

“The FCAI and our members have been concerned about the risk-averse approach to lending in Australia for some time and see improved access to finance as a key to driving economic growth in 2020.”

Sales were down across all buyer types, including private (5.2%), business (8.2%) and government (7.3%), which Mr Weber said was interesting.

Toyota remains the leader as the most popular car brand, followed by Mazda and Hyundai.

RankCar brandTotal sales YTDTotal sales October 2019
1
Toyota171,50316,988
2Mazda85,4276,370
3Hyundai73,9447,455
4Mitsubishi69,3174,811
5Ford53,4954,891
6Kia51,4225,062
7Nissan42,3544,011
8Volkswagen 41,9294,220
9Holden37,3013,086
10Honda36,9712,761

The Toyota Hi-Lux remained the top-selling vehicle for the month with 3,516 sold, followed by the Ford Ranger (3,160), the Hyundai i30 (2,216), the Toyota RAV4 (2,132) and the Toyota Corolla (2,117).

RankVehicleOct 19Oct 18% diff
1Toyota Hi-Lux3,5164,401-20.1%
2Ford Ranger 3,1603,511-10.1%
3Hyundai i302,2162,0498.2%
4Toyota RAV42,1321,58234.8%
5Toyota Corolla2,1172,663-20.5%
6Toyota Landcruiser 2,1011,9706.6%
7Kia Cerato1,8271,33836.5%
8Mazda CX-51,7082,000-14.6%
9Hyundai Tucson1,6931,53010.7%
10Nissan XTrail1,5921,644-3.2%

The declining car sales figures are yet another sign of a struggling economy, with figures released earlier this week showing a slump in retail sales figures.

Some industry players believe the rise of car subscription services may be behind the falling new car sales.

Last month, Hyundai announced it would be joining car subscription service Carly, allowing motorists to subscribe to new and used Hyundai vehicles in Australia.

Carly CEO Chris Noone said car ownership is changing as finance gets harder to obtain.

“Car finance is getting harder to obtain and banks are cracking down on lending, especially after the banking Royal Commission,” Mr Noone said.

“This is a new age for car ownership in Australia. The goalposts have definitely shifted from outright purchase and debt financing to more flexible arrangements to suit lifestyle and personal circumstances.”

Earlier this year, Melbourne-based car subscription service Carbar launched in Sydney, with plans for a broader roll out across the rest of the country.

Jaguar Australia recently announced it would be partnering up with Carbar.

Looking for a low-rate car loan? The table below displays some of the lowest fixed car loan rates on the market for new cars.

Company Advertised rate Comparison rate* Monthly repayments  
Car Loan (New) 4.89% 5.44% $376 More details
Car Loan (Up to 2 years old) 5.45% 5.80% $382 More details
New Car Loan 5.49% 5.87% $382 More details
Discounted Personal Loan (Car Loan) 5.64% 5.99% $388 More details
New Car Loan Fixed 6.45% 6.66% $391 More details
Secured Car Loan Fixed 6.99% (up to 9.49%) 8.05% (up to 10.53%) $396 (up to $420) More details
Ad rate Comp rate* Repayments
Car Loan (New)
4.89% 5.44% $376
More details
Car Loan (Up to 2 years old)
5.49% 5.84% $382
More details
New Car Loan
5.49% 5.87% $382
More details
Discounted Personal Loan (Car Loan)
5.64% 5.99% $388
More details
New Car Loan Fixed
6.45% 6.66% $391
More details
Secured Car Loan
6.99% (up to 9.49%) 8.05% (up to 10.53%) $396 (up to $420)
More details

*Data accurate as at 18 November 2019. Rates based on a loan of $20,000 for a five-year loan term. Products sorted by advertised rate, then by company name (A-Z). Repayments are calculated based on advertised rates. View disclaimer.

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Emma Duffy
Emma Duffy joined Savings.com.au as a Finance Journalist in 2019 after spending a year as the editor of The Real Estate Conversation. She's most passionate about improving the financial literacy of millennials by writing about complex financial topics in a way that's easy for the average Joe (or Jill) to understand.

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