SUVs continue dominance in new car sales shocker

author-avatar By on September 03, 2020
SUVs continue dominance in new car sales shocker

Photo by Clément Falize on Unsplash

New figures show car sales are in their 29th continuous month of decline, down 28.8% in August, yet light SUV sales are up 12.2%.

In August 2020, just under 61,000 new vehicles were sold, down from more than 85,000 in August 2019, according to the Federal Chamber of Automotive Industries (FCAI).

In the year to date, car sales figures are also down more than a fifth compared to 2019's period.

However, light SUVs continued to gain market share, up 12.2% in sales compared to August 2019.

This was aided by the likes of the the new Suzuki Jimny (+157.1%), Nissan Juke (+15.4%) and Mazda CX-3 (+3.6%).  

SUVs now also make up 53.1% of all new vehicles sold, up 7.5% on August 2019, while passenger cars (sedans, hatchbacks) decreased 5.9%. 

These figures are largely a continuation of the trend as seen in July's figures.

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

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

FixedNew1 yearMore details

Green Car Loan

FixedNew, Used99 yearsMore details
APPLY ONLINE
  • No extra repayment or early exit fees
  • Up to $75,000 in loan amounts
  • Funding approved within 24 hours
APPLY ONLINE
FixedNew4 yearsMore details
GET APPROVED WITHIN 24 HOURS

Car Loan (New and Dealer Used) (< 5 years)

  • Approval in 24 hours
  • Balloon options to reduce repayments
  • No ongoing fees, no discharge fee
GET APPROVED WITHIN 24 HOURS

Car Loan (New and Dealer Used) (< 5 years)

  • Approval in 24 hours
  • Balloon options to reduce repayments
  • No ongoing fees, no discharge fee
FixedNew2 yearsMore details
QUICK APPLICATION PROCESS WITH NO FEES

New Vehicle Fast Loan Low Rate

  • Quick application process and no monthly fees
  • Low fixed interest rates with terms of up to seven years
  • New car loans cover cars up to 3 years old
QUICK APPLICATION PROCESS WITH NO FEES

New Vehicle Fast Loan Low Rate

  • Quick application process and no monthly fees
  • Low fixed interest rates with terms of up to seven years
  • New car loans cover cars up to 3 years old
FixedNew1 yearMore details
No ongoing fees

Plenti Car Loan

No ongoing fees

Plenti Car Loan

    FixedNew, Used7 yearsMore details
    No ongoing fees

    Plenti Car Loan (Refinance)

    No ongoing fees

    Rates based on a loan of $30,000 for a five-year loan term. Products sorted by advertised rate. Rates correct as of October 28, 2021. View disclaimer.

    FCAI chief Tony Weber said the evidence was clear the effect state lockdowns has on car sales, with Victoria's new car sales down nearly two thirds.

    “We’ve seen 29 consecutive months of diminishing sales in this industry, and there’s no doubt our members are feeling the pinch," he said.

    "The move to commence the reopening of industry and markets, especially in Victoria, needs to start as soon as possible."

    In a rare bright spot on the FCAI report, hybrid SUVs increased their sales by 358.4%, aided largely by the likes of the new Toyota RAV-4 (+140.5%).

    Fully-electric SUVs also increased their sales by 23.3%. 

    Luxury SUVs also enjoyed popularity, with the new BMW X6 up 800% in sales for August, and the Mercedes-Benz GLE-Class Coupe's up 81.8%.

    The small Mercedes-Benz GLA-Class also increased sales by 37.7%.

    In larger bodies, the Mercedes-Benz GLS-Class is also up 221.4% in the 'Upper Large' category, and the Nissan Patrol is up 13.3%.

    No word yet on effectiveness of increased asset write-offs

    Light commercial vehicles (vans, utes) and SUVs made up 71.5% of vehicle sales in August 2020.

    However, with the small business instant asset write off quintupled to $150,000 and extended to the end of the year, it's unclear the effect it's having.

    "It is really difficult to quantify what specific effect that stimulant is having on these sales," an FCAI spokesperson told Savings.com.au.

    "In addition, every case of instant asset write off is different, so [it is] really hard to make a broad statement.

    "Nonetheless, the industry is clearly in a challenging situation, so all support and stimulants are very welcome."


    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.

    Latest Articles

    author-avatar
    Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

    Collections:

    Be Savings smart.
    Subscribe for free money newsletters.

    By subscribing you agree to the Savings Privacy Policy