The Odometer for Car Sales Hit a Record in 2012
Many Australians will remember the year 2012 for the barrage of mixed economic signals, debates around the two-speed economy and the first Melbourne Cup day without a rate cut in six years. However one statistic released by the Australian Bureau of Statistics released earlier this month clearly demonstrates a new trend in Australia: buying a new car!
In 2012 there were a record 1,110,483 car sales in Australia and a single month high of 98,264 in December. In fact the car industry grew 10.3 per cent from 2011 to 2012 despite most sectors in the economy remaining relatively steady. While this record has gone largely unreported by the mainstream media it does provide a clear indication that Australians have their foot on the buying accelerator in this particular industry.
Many industry pundits claim that a number of contributing factors for such growth has been the combination of the strong Australian financing dollar and low interest rates as well as the increasing affordability of many new vehicles.
Shopping around for a car loan is nearly as important as shopping around for car. This is especially the case when you’re buying a new vehicle.
There are a number of sources available for financing a new car; an existing mortgage, a personal loan, dealer financing, factory financing or a novated lease.
Like shopping for a home loan, your car loan should be suited towards your personal circumstances and you should shop around for the type of loan that will match such factors as:
- When you would like to purchase the vehicle
- Your monthly repayment budget
- How quickly you’d like to pay off the loan
- If you would prefer to go with a fixed or variable interest rate
It’s important to shop around for your car loan because many lenders and dealers aim specific deals towards certain types of cars. Some Credit Unions for example, offer discounts for more environmentally friendly vehicles, such as hybrids while some lenders target vehicles used specifically for commercial purposes.
Mortgage brokers are a great source of knowledge and expertise for the latest car loan offerings. They can offer you the right advice if you’re looking to bundle a car purchase into your home loan or if it will better suit you to obtain financing elsewhere. A mortgage broker can also set you up with pre-approval so that you can shop around with confidence.