Buying a new car used to be an exciting experience. Spending hours online checking out the new models and days leisurely visiting dealerships for a test drive and a bargaining chat over deals and offers. But the supply issues in the new car market over the past few years have turned the search for a new car into somewhat of a treasure hunt to find who actually has stock! As inspiration for where to look, reviewing the monthly new car sales data may assist buyers.
New car sales are reportedly monthly by the FCAI and can assist those looking for who has stock but buyers should be prepared with a pre-approved car loan. In this current low stock market, being ready to say YES to the dealer once the vehicle is sourced may be the difference between securing a car now or going on the waitlist.
We report on the latest FCAI VFACTS for July 2022 and include information on securing a pre-approved car loan prior to purchase.
FCAI July Sales Report
The FCAI reports sales figures for new vehicles, not second-hand, on a monthly basis. The figures are for vehicles which are actually delivered to buyers in that period. In the current new vehicle market, it is worth noting that the figures do not include vehicle orders awaiting delivery. The figures are broken down into makers, models and specific categories.
In the statement releasing the July results, Tony Weber, the Chief Executive of the FCAI noted that the result was relatively flat, though 0.4% up in total on July 2021, when compared with the same period for 2021. Mr Weber said this indicated that the new car market had not yet normalised to the levels seen pre-pandemic.
Mr Weber reiterated comments made on several occasions over the past few years that the market continued to be affected by the COVID situation. Specifically that both manufacturers of vehicles and components were impacted by factory shutdowns, shipping issues and unpredictable logistics. He said that the stabilisation of supply was not expected in the near future. Demand continues to exceed supply which is a trend being seen globally.
General Sales Overview
Despite one less selling day in July 2022 when compared with July 2021, sales overall were up 0.4%. The passenger car market continues to be down, -9.1% for the period compared with 2021 period while the SUV market continues its popularity with a 6.4% comparative increase for the period.
Toyota continued its market dominance as the July market leader. Mazda and Hyundai rounded out the manufacturer’s podium. Next came Kia and Mitsubishi. In specific models, there were few surprises with HiLux beating Ford Ranger by quite a large margin, over 6,000 vehicles compared with just under 3,000. The very popular, but hard to secure RAV4 was third. Then came the Mazda CX-5 and Tucson by Hyundai.
Top Sellers
The figures are released for models on a monthly ranking basis and for brands based on figures for the year to date.
The top 10 models for July 2022 were: HiLux, Ranger, RAV4, CX-5, Tucson, LandCruiser, Corolla, D-MAX, Triton and Sportage by Kia.
The top selling brands YTD are Toyota way out in front of Mazda, then Mitsubishi, Kia, Hyundai, Ford, MG, Isuzu, Subaru and Nissan.
In the EV market, PHEV models were outsold by EVs in the period, though only slightly. The sales of PHEVs was up 77.8% for the period compared to the same reporting period in 2021. So possibly electric vehicles are finally gaining acceptance in the Australian market after a low take-up compared with many other countries.
So what can prospective buyers make of these results? It’s difficult to draw definite conclusions as some of the sales will have been delivery of back orders. As those in the new car market will be well aware of, long delivery times are to be expected across most brands.
However, the sales may indicate which brands do have some stock and may provide guidance for those seeking an immediate purchase. To be in a position to make that quick buy, consider pre-approved motor vehicle finance.
Pre-Approved Car Loans
We provide pre-approved finance across our complete and extensive range of motor vehicle finance loans. Loans are arranged before the sale is committed to and as such, the loan amount is estimated. The interest rate applicable is the same as the rate which would apply if the loan is applied for post-sale commitment. Rates vary across loan products and in regard to aspects of the individual loan application. The best rates advertised will be for good credit score applicants.
Interest rates are on the rise, so it is important to realise that pre-approved loans are based on the business car financing rates at the time of application but this type of loan does have a time limitation. The pre-approved loan must be acted on within the time as specified by our consultant. If the loan offer expires before use but is required at a later date, it would need to be re-quoted based on the interest rates at that time.
As Mr Weber indicated, the new car market has still not returned to the normal levels of supply. So those in the market for a new vehicle may need to consider a range of make and model options to secure a vehicle ASAP or go on the waitlist. Prices for many models are increasing due to many factors. So securing your vehicle asap may result in saving money on the price and securing a cheaper interest rate. Overall, it could be financially better to opt for the second or third preference rather than wait 6-12 months for the number one pick to arrive in Australia.
The next round of sales figures will be due in early September.
Contact Jade Car Loans at 1300 000 003 to discuss the options for cheaper interest rate new car finance
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
