According to the motor industry statistical service VFACTS, new vehicles sales fell 7.8% in July compared to the same period last year. If you weren’t selling SUVs then the results were even worse. Passenger car sales fell by 20.2 per cent. Big losers in the top 10 brands were: Holden – down 39%, Subaru – down 21%, Ford – down 12.6%, with the top 3 brands of Toyota, Mazda and Hyundai all losing about 6% in sales.
Notable losers in the Top 20 were BMW- down 21% and Audi – down 36%. Broadly speaking, the large car segment fell 56%, medium cars down 31%, and sports cars down 38%. Following the worldwide trend, SUVs and light commercial vehicles were popular with pickup in sales in both categories compared to July last year.
The latest figures are quite a turnaround from the record breaking pace the industry was experiencing up until the end of 2017. In December, the motor industry posted its 4th record in 5 years. Sales in 2017 were 1,189,000, an increase of .9% over the previous year.
Also, in January this year, the Aussie dollar had a recent peak of US $0.81c, with all things imported feeling the effects of a 8.6% price rise caused by a falling Australian dollar.
Various news reports are pointing out that there is a clear link between house price growth and sales of prestige cars. People tend to be more confident with their spending as home prices have risen substantially over the past 6 years. Sydney and Melbourne auction clearance rates has fallen below 60%, possibly testing long term lows in the near term. Sydney’s property prices have fallen 5% over the past year, with a cautious eye looking at the upcoming Spring selling season and the expected surge in listings.
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