Tax Break Spurs Exceptional New Car Sales Result

[mcnews]

TAX BREAK SPURS EXCEPTIONAL NEW CAR SALES RESULT

Businesses taking advantage of government tax incentives to purchase light commercials and SUVs have helped the November new vehicle market rise by almost 20 per cent.

Official VFACTS data released by the Federal Chamber of Automotive Industries (FCAI) shows that 85,833 passenger cars, SUVs and commercial vehicles were sold in November 2009 – an increase of 19.9 per cent (14,216 vehicles) compared to the same month last year.

“This is an extraordinary result that provides further evidence that the market and the broader Australian economy are showing signs of recovery,” FCAI Chief Executive Andrew McKellar said.

“The exceptional November figures could not have been achieved without the Federal Government’s small business tax break,” he said.

“Business sales increased an incredible 35.4 per cent during the month; spurred on by the substantial incentives available until the end of the year,” Mr McKellar said.

One note of caution the industry has as we look to the year ahead relates to the recent interest rate rises.

“There is the risk that if the banks move too early and too rapidly to increase rates the positive impact of this stimulus measure will be diminished,” he said.

The SUV segment led the market in November with an increase of 44 per cent, followed by light commercials with a rise of 38.9 per cent and then passenger cars with a 9.4 per cent increase.

Year-to-date 848,620 new vehicles have been sold, down 9.3 per cent compared to the same period last year.

Toyota remained in the top sales position in November with 19,603 vehicle sales, ahead of Holden with 11,391 and Ford with 8,868.

[GT0132]

Originally Posted by mcnews

TAX BREAK SPURS EXCEPTIONAL NEW CAR SALES RESULT

Businesses taking advantage of government tax incentives to purchase light commercials and SUVs have helped the November new vehicle market rise by almost 20 per cent.

Official VFACTS data released by the Federal Chamber of Automotive Industries (FCAI) shows that 85,833 passenger cars, SUVs and commercial vehicles were sold in November 2009 – an increase of 19.9 per cent (14,216 vehicles) compared to the same month last year.

“This is an extraordinary result that provides further evidence that the market and the broader Australian economy are showing signs of recovery,” FCAI Chief Executive Andrew McKellar said.

“The exceptional November figures could not have been achieved without the Federal Government’s small business tax break,” he said.

“Business sales increased an incredible 35.4 per cent during the month; spurred on by the substantial incentives available until the end of the year,” Mr McKellar said.

One note of caution the industry has as we look to the year ahead relates to the recent interest rate rises.

“There is the risk that if the banks move too early and too rapidly to increase rates the positive impact of this stimulus measure will be diminished,” he said.

The SUV segment led the market in November with an increase of 44 per cent, followed by light commercials with a rise of 38.9 per cent and then passenger cars with a 9.4 per cent increase.

Year-to-date 848,620 new vehicles have been sold, down 9.3 per cent compared to the same period last year.

Toyota remained in the top sales position in November with 19,603 vehicle sales, ahead of Holden with 11,391 and Ford with 8,868.

Funny how they are talking about signs of recovery. The major factor in new car sales is the tax break which ends in December...Lets see how car sales go in January and February 2010 once the incentive is removed.

[Sorted]

Don't I know it, I work in Insurance and its a Mad Rush this month as clients are buying new vehicles to qualify for the Tax Break

[Nappa]

I've seen it first hand, many people are saying that they would have even considered buying a car if it wasnt for this tax incentive.
Its brought many people out of the woodwork. However it will be interesting to see how the market go's come jan 1st 2010

[Brazen]

Top-ten selling cars for the month were: Toyota HiLux (4230), Holden Commodore (3956), Toyota Corolla (3309), Ford Falcon (2863), Mazda3 (2548), Holden Cruze (2274), Mitsubishi Lancer (2023), Toyota Camry (2003), Hyundai i30 (1998), Toyota Yaris (1725).

[trippytaka]

Originally Posted by GT0132

Funny how they are talking about signs of recovery. The major factor in new car sales is the tax break which ends in December...Lets see how car sales go in January and February 2010 once the incentive is removed.

Agreed. We're far from recovery... with all that's happened in Dubai and then America announcing its highest bankruptcy rates the other day, I think Australia is still in for a rude shock. The figures are indeed being propped up by the strong sectors, such as mining, and then retail has been propped up by Government tax breaks etc... housing has also been propped up by Government - and stupidity.

All of this is leading us (individually and collectively) into more debt as most of the spending is credit. Very dangerous situation to be in.

I'm worried about the housing bubble most... every other country on earth had theirs pop. It's one of our biggest threats at the moment and it echoes the conditions of the UK, the US etc just before the crashes. Sub Prime anyone?

Anyway, sorry for the hijack.

[Dave R]

Well it seems the Cruze is officially a hit. People were saying its' numbers would drop off after the first month or two, yet come November it's within a few hundred units of Falcon. And look at the HiLux, its' numbers add up to half of Ford's total sales!

Regarding the overall increase indicating the economy is in "recovery", smoke and mirrors, the sales were pushed with tax incentives. Assuming business/fleet sales account for the majority of new cars sold; and business sales were up 35%, the total increase was only 19%. What does that say about private sales?

[Brazen]

Originally Posted by Adrenaline

Well it seems the Cruze is officially a hit. People were saying its' numbers would drop off after the first month or two, yet come November it's within a few hundred units of Falcon. And look at the HiLux, its' numbers add up to half of Ford's total sales!

Holden are still finding it very hard to source Cruzes for the Australian market, with some orders up to March/April especially for the top of the line models. Also Cruze really needs a hatch variant, around 50% of Corollas and Mazda3 are hatches, and it also needs a sports/sporty models. These factors should sort itself out when it starts local production next year.

Hilux and the like are a hit, the local producers really need to pull their finger out and look at why these are being bought. I think the local utes should have options for higher ground clearance.

Also a dual cab Falcon would sell well (probably pointless with the T6 coming out). But the lack of seats do hurt sales which is why Ford should offer the column shift option in the XR6 or XR8 utes - you would nab a few buyers who would have instead bought a dual cab.

[TUF_302]

The tax break must be the only reason i've seen 2 people with Great Wall utes lol, there is no way in there world you would buy one at full price, even if full price is 20g lol!

[trippytaka]

Originally Posted by Adrenaline

Well it seems the Cruze is officially a hit. People were saying its' numbers would drop off after the first month or two, yet come November it's within a few hundred units of Falcon. And look at the HiLux, its' numbers add up to half of Ford's total sales!

Regarding the overall increase indicating the economy is in "recovery", smoke and mirrors, the sales were pushed with tax incentives. Assuming business/fleet sales account for the majority of new cars sold; and business sales were up 35%, the total increase was only 19%. What does that say about private sales?

I'm not that good at maths, but it does seem to point down. I don't know anyone who has bought a NEW car, privately, in the last 12 months. Even older family friends in very comfortable retirement have been buying second hand to get "bargains"...

[Giant Cranium]

do the people that buy hiluxs even test drive them. they are the most over rated car ever. why they still sell so many confuses me

[trippytaka]

Originally Posted by captain awesome

do the people that buy hiluxs even test drive them. they are the most over rated car ever. why they still sell so many confuses me

Ugly as sin too

[phillyc]

Originally Posted by Brazen

Top-ten selling cars for the month were: Toyota HiLux (4230), Holden Commodore (3956), Toyota Corolla (3309), Ford Falcon (2863), Mazda3 (2548), Holden Cruze (2274), Mitsubishi Lancer (2023), Toyota Camry (2003), Hyundai i30 (1998), Toyota Yaris (1725).

Shows that once again, at 2800 odd units, Ford is selling ALL the Falcons it can make.

With the 50% business allowance, Toyota with their broad SUV & commercial base were always going to do well.

Commodore bounced back too. Up 500 units compared to last month. But they have the capacity to get those sales and with an 'international' value pack with $10k worth of extra features for $34k it's a good buy. Until you remember you get the 3.0L and it's still a dated VE. But the sheep and fleets will buy.

Strong result for Camry. Over 2000 units.

Overall, a great result for the locally built cars. Very important.

[Stoney!]

Originally Posted by captain awesome

do the people that buy hiluxs even test drive them. they are the most over rated car ever. why they still sell so many confuses me

I agree with this totally, State Transit used to have the 4.0 petrol hilux as their 'support vehicle' and on one of the shifts we did we had to take the officer round to where they parked their car in so they could pick it up...

I did this shift many of times, but the first time I got the biggest fright, the 4.0 pulls like a lonely male but holy Christ WHERE ARE THE BRAKES, they have terrible brake feel and they have a lot of trouble pulling the car up.... even my mate that had a diesel one from the council said that with the added compression the brakes are still woeful, the other one we had was exactly the same.

When I brought it up with one of the officers that drives these regularly who is a car nut he told me they have taken them back many times to fix it and toyota would simply say no fault found....

They now use FG utes and Hyundai i30's for staff cars instead of corolla's.

Bring on the Volkswagen Amarok good engines and likely to have the 7 speed DSG added to the range as with the upcoming Transporter. http://www.caradvice.com.au/49704/20...arok-revealed/

Speaking of the FG ute which is gas, I dunno how anyone can buy factory gas in these things, it sounds terrible with a constant drone and was louder than my old 1982 2.8MPFI Cressida, not to mention had less power in the bottom end, but definitely gets going. Avg fuel cons was coming up at 27.3L/100k's too.

The Cruze however I agree is going extremely well, and the Diesel CDX being added to the range early next year as well as a hatch version and a brilliant 1.4 turbo should see them easily overtake the Mazda3, as its close enough already, should come pretty close to the corolla to, I won't say outsell (even if its possible) because that;s to much speculation.

Figures for the 1.4 turbo were released today with 103 kw and 200nm of torque and 5.8L/100k's, should do the car a fair bit of justice, the 1.4 turbo in the base model golf has been given a few cheers.

Hope to see a CDXi in local production also!

Stoney!

[Giant Cranium]

i have a v6 hilux sr as my company car and it is scary to drive. you either get no brakes or they lock up.
i get 25 lph when im nice to it and i do a set of brakes in 5000ks.
a warning for anyone looking at them. DONT.