AFTER YEARS of seemingly irresistible increasing car sales, it seems the bubble may finally have burst.
The Federal Chamber of Automotive Industries, the peak body for the automotive industry in Australia, has released new vehicle sales figures for the month of September 2019.
According to Tony Weber, chief executive of the FCAI, new vehicles have now seen the eighteenth consecutive month of decreasing sales in the Australian market
“It is clear the slower sales rate the market is experiencing is in line with the broader economic environment in Australia. Of particular concern to the industry is the restrictive regulatory lending conditions currently facing consumers,” Mr Weber said.
“The question has to be asked – are these results telling us we have made it too difficult for people to finance basic purchases in today’s Australia?”
Total sales for the month numbered 88,181 vehicles, a decrease of 6,530 vehicles, or 6.9 percent, on September 2018. On a year-to-date basis, a total of 811,464 new vehicles were sold, a decrease of 69,541 vehicles, or 7.9 percent, on the same period in 2018.
During the month, the Sports Utility Market (41,861 units) lifted by 1.1 percent, while the Passenger Vehicle Market (24,893 units) was down 18.3 percent, and the Light Commercial Market (18,257) decreased by 5.4 percent.
Of the top ten best-selling vehicles, the top three were Light Commercial Vehicles – the Toyota Hi-Lux, Ford Ranger and Mitsubishi Triton. Four of the remaining seven were Sports Utility Vehicles – the Mitsubishi ASX, Mazda CX-5, Nissan X-Trail and the Mitsubishi Outlander. Only three of the top ten vehicles were Passenger Vehicles – the Hyundai i30, Toyota Corolla and the Kia Cerato.
Toyota remained the top selling marque for the month with 15,166 sales for 17.2 percent market share, followed by Mitsubishi (8,990 for 10.2 percent market share), Mazda (8,168 sales for 9.3 percent market share) Hyundai (7,245 sales for 8.2 percent market share) and Kia (5,128 for 5.8 percent market share).
Perhaps the good news for new car buyers is that they have a bit more purchasing power and a slightly stronger negotiating position. So haggle hard.