Dealers have reason to rejoice, knowing car affordability is running at the best levels on record.
Latest VFACTS figures indicate the market – buoyed by low interest rates, a strong share market, rising employment and high personal wealth levels – is on track to register a tad more than 1.2 million new vehicles this year.
ComSec’s ‘Economic Insights’ reports that for the first time in nearly four decades it would take an average wage earner 21.7 weeks to purchase a new Holden Commodore Evoke – a huge improvement over the last decade, when the car affordability measure stood at 31.5 weeks.
The biggest growth continues to come from tradie ute sales and medium SUVs, with Toyota taking the honours.
Toyota is the clear market leader YTD, followed by Mazda, Hyundai, Mitsubishi, Holden and Ford.
AADA CEO, David Blackhall, said the current economic climate presents unprecedented opportunities for Dealers to exceed their targets with good, creative marketing.
He said stable petrol prices, a strong Australian dollar and upbeat household confidence are other key factors that will contribute to continued growth.
Mr Blackhall said consumers are also in a win/win situation, having the option to select a car of their choice from the 67 different makes and a huge proliferation of models.
“The Australian automotive industry is the most competitive market in the world. That makes it a genuine buyer’s market.
“With such a big product offering, I find it difficult to comprehend why the powers that be in Canberra are talking about allowing individuals to import new vehicles here.“This kind of talk only puts stars in consumers’ eyes, giving them a false set of expectations that they can bring in a new car and be afforded factory-authorised service providers and long-term warranties, when nothing can be further from the truth,” he said.
Automotive Industry Observer and Advisor to the AADA