How do you feel about buying a car? For most Australians, it’s the biggest financial hit they’ll take, short of buying a house. And while the novated leasing process takes a lot of the complexities out of the purchase, it’s still cause for hesitation for many.
But not for all, according to the latest research. In fact, as of November this year, the number of new car sales in the country actually broke one million.
The best in the record books
According to data from the Federal Chamber of Automotive Industries (FCAI), there were 98,639 sales of new vehicles in November this year. That’s not just 6.9 per cent higher than last year, it takes the year’s total over the million mark – also much higher than the year before.
Tony Weber, chief executive of the FCAI noted the following changes in particular:
- SUVs and light commercial vehicles went up 16 per cent in November, and together make up 55 per cent of the total market
- Passenger cars saw a 3.1 per cent drop in sales, but they are still the single largest category in the market (42.3 per cent)
- Government, business and private vehicles all marked increases of around 9 per cent in November
So clearly, most types of vehicle are performing very well as we round out 2015. Perhaps it’s time for employers to start looking at a summer fleet expansion along with the rest of the country?
Consumer confidence matches the sales
It hasn’t just been a good year for these sales – it looks like next year might continue this performance. The ANZ and Roy Morgan Consumer Confidence Index marked a 3.1 per cent jump in the week of December 8, and sentiment about economic conditions next year was looking very good indeed.
“More positive newsflow around the economy may have lifted overall confidence,”
“More positive newsflow around the economy may have lifted overall confidence with both retail trade and the official numbers on GDP growth showing the Australian economy growing at a better-than-expected rate,” said Felicity Emmett, Co-head of Australian Economics at ANZ.
So, if conditions persist, we could see even more positivity towards new car sales. If you’ve decided it’s a sound next step, then it might be time to come and talk to us. Using a novated lease to secure a vehicle has cashflow benefits for both employers and employees. It can take stressful components out of the deal and leave you free to jump on board with the current car-buying upswing.