(Australian Associated Press)
Low interest rates and improving household budgets have fuelled a boom in new car sales.
Sales in April were up 7.2 per cent from the same month in 2015, to 87,571 vehicles, according to the Federal Chamber of Automotive Industries.
A record 1.17 million new vehicles were sold in the year to April, and more than 35 per cent were four-wheel-drives.
“The April record just posted provides further evidence that the industry is price-competitive, offering great value to buyers, delivering jobs and investment and in no need of change,” FCAI chief executive Tony Weber said.
CommSec economist Savanth Sebastian said the Reserve Bank’s decision to slash the cash rate to an all-time low of 1.75 per cent on Tuesday would likely generate further sales.
“In the car industry, the financing rates that are on offer for new cars in particular are very attractive,” he said.
“If you’ve got further cuts to the cash rate, it’s likely to spur another round of big ticket purchases.”
Toyota was the most popular brand with Australians in April, claiming an 18.9 per cent market share, while the Hyundai i30 was the most purchased vehicle, with 4,143 driving off the lot.