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New-car sales hit the brakes in August
Topic Started: 7 Sep 2014, 09:04 AM (2,404 Views)
Poontang
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New-car sales hit the brakes in August


http://www.carsguide.com.au/car-news/new-car-sales-hit-the-brakes-in-august-29360#.VAuDwqM09mw
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Sales of new cars hit the brakes in August. The seventh month in a row of slowdowns was also the biggest drop since the Global Financial Crisis, figures released Wednesday are expected to show

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The downturn has the industry in a spin given Commsec data shows car affordability is at a 38-year high and prices are at 20-year lows.

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National unemployment has risen from 5.7 per cent of the population to 6.4 per cent over the past 12 months, adding 109,000 people to the jobless market (680,000 to 789,000), Australian Bureau of Statistics figures show.

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“We continue to see low levels of consumer confidence and that’s having a real impact on the market,"

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Last year, several brands were accused of “over-reporting” new cars as sold, even though they were yet to be delivered to a customer.

At least one of those brands, Nissan, admitted two months ago the practice occurred but says it has since balanced its books by under-reporting the number of cars it has delivered this year.

Meanwhile, the industry insider says, manufacturers are “coming to terms with the continuing downturn globally … and production levels are being more reflective of the global sales demand”.



Edited by Poontang, 7 Sep 2014, 09:04 AM.
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The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.

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furry
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Is this one of those canary indicators of the general state of the economy, or a result of totally unrelated factors?
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Jimbo
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furry
7 Sep 2014, 01:38 PM
Is this one of those canary indicators of the general state of the economy, or a result of totally unrelated factors?
Used car prices have fallen in Perth over the last year also. This may be due simply to the fact that Perth used cars were so bloody expensive in the past and buying new was almost the better option.

But yes, canary in the coalmine is always a possibility. New cars, expensive furniture, high end electronic gadgets. These are the things that we don't really need to have and will put off replacing when we are trying to save money.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Madza sales down 23.4% in 12 months. I sign that the debt brick wall is unable to be supported by current pay levels and that debt exhaustion is starting to take its toll along with jobs losses.

Like they mention , apparently affordability is at 38 years highs, and prices are the cheapest in twenty years, and with interest rates at record lows. Could it be a case where it does not matter how affordable or cheap things are, wheather it be years or decades as seen here, or that rates are at record lows,but the case where if you dont have a job you cannot afford it no matter how cheap things are.

There is always the chance they are steering away from cars to load up on housing debt, which could be reflected in rising debt levels over the 12 months. I would say its probably a combination of the two.
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newjez
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Jimbo
7 Sep 2014, 01:54 PM
Used car prices have fallen in Perth over the last year also. This may be due simply to the fact that Perth used cars were so bloody expensive in the past and buying new was almost the better option.

But yes, canary in the coalmine is always a possibility. New cars, expensive furniture, high end electronic gadgets. These are the things that we don't really need to have and will put off replacing when we are trying to save money.
More to do with the exchange rates methinks.

The price of new cars will go up if the dollar drops.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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miw
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furry
7 Sep 2014, 01:38 PM
Is this one of those canary indicators of the general state of the economy, or a result of totally unrelated factors?
Possibly both?

I expect more of it. As the indigenous car industry dies out, the holding time for cars will increase dramatically. (Just check out the average age at disposal of cars in NZ vs. Australia)

Also, there were a lot of factors over the past couple of decades that prompted people to turn over their cars earlier which may have fully played into the market, and now gradual improvements in quality and durability may start to take over.
The truth will set you free. But first, it will piss you off.
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Perthite
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Jimbo
7 Sep 2014, 01:54 PM
Used car prices have fallen in Perth over the last year also. This may be due simply to the fact that Perth used cars were so bloody expensive in the past and buying new was almost the better option.

But yes, canary in the coalmine is always a possibility. New cars, expensive furniture, high end electronic gadgets. These are the things that we don't really need to have and will put off replacing when we are trying to save money.
As you would expect new car sales have dropped the most in WA. Down around 15% from the peak.

Just like retail sales that just keep falling in WA.

Don't tell anyone... the media here might get upset.
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Jimbo
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Perthite
7 Sep 2014, 06:34 PM
As you would expect new car sales have dropped the most in WA. Down around 15% from the peak.

Just like retail sales that just keep falling in WA.

Don't tell anyone... the media here might get upset.
I have a feeling that boats and jetskis are going to get a lot cheaper as well.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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stinkbug
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I buy new vehicles every 2-3 years, and over the past 5 years it's gotten steadily easier to negotiate a great deal. Part of this is me learning hwta to ask for, but there seems to be a lot more stock subject to discounting. My last new vehicle purchase was about 6 months ago, and the dealership gave me a factory discount, and a dealer discount, and a very good trade in price on a new vehicle that was still on the ship being transported.

Car sales is a cutthroat business in Australia. There are some seriously good deals to be had. Of course, second hand cars are super cheap now, so for many people that will be an even better option.

EDIT: Our family runs 2 cars, and we swap the oldest one out every 3-4 years. My work situation makes this tax effective, and surprisingly inexpensive.
Jimbo
7 Sep 2014, 06:39 PM
I have a feeling that boats and jetskis are going to get a lot cheaper as well.
Probably, but I wouldn't actually own either.
Edited by stinkbug, 7 Sep 2014, 08:55 PM.
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Bardon
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I will believe it when I buy my next C class benz.
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