13 Jun 2019
Vehicle Industry: New Car Sales
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
In the calendar year ending 31 December 2017 a record 1,189,116 new vehicles we sold in Australia according to VFACTS which aggregates retail sales figures for the Federal Chamber of Automotive Industries.
The new vehicle sales numbers however have been falling month on month since August 2018.
If you compare May 2019 with May 2018 there have been 8,193 fewer new vehicle sales for the month or a 8.1% reduction Australia wide which is significant.
Click for chart.
So what’s the cause? Is it the fall in residential house prices, the tighter lending criteria by the banks, the existing high household indebtedness or the proliferation of ride sharing services? What?
Probably all of it is impacting.
Economic conditions are definitely shifting with the biggest household purchase (primary residence) and the second household biggest purchase (vehicle) having both reduced in sales volume.
The key for investors with all of this market noise is to remain invested according to your appetite for volatility and then, when fear and panic take hold during the next financial catastrophe, to take advantage by buying more quality assets at discounted prices.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.