Car Sales Boom in Australia Leads to Rise in Car Loans
New car sales in Australia are back with a bang as the economy recovers from the COVID-19 pandemic.
MELBOURNE, Australia, Aug. 16, 2021 /PRNewswire/ -- Last year, vehicle sales plummeted across the country. Impacted by the COVID-19 pandemic, consumer activity and inquiries to dealerships were at an all-time low. Top finance broker, National Loans, who provides asset finance including boat finance and caravan finance, says the car industry was plunged into chaos as a result of lockdowns both here and overseas.
In promising signs for the industry, recent figures released by the Australian Bureau of Statistics (ABS) show that car finance loan commitments rose by 4.7 per cent in May 2021 and the total value of new loan commitments for the month grew to $1.296 billion.
According to National Loans, the value of new car loans reflects consumer confidence and activity that has been encouraged by attractive interest rates and a range of other economic indicators.
In addition, the latest figures from the Federal Chamber of Automotive Industries (FCAI) shows strong results for new vehicle sales in June, with over 100,000 sales recorded. This represents an increase of 0.04 per cent year-on-year. National Loans says this figure could be even higher if dealerships across the nation weren't hampered by a lack of new car stock due to factories worldwide being shut down during lockdowns.
The resurrection of the new car market is being led by booming SUV and ute sales with private buyers leading the charge. With long waiting times on new vehicles, National Loans says it is possible there is pent up market demand, which may be reflected in higher growth in the second half of the year for the car industry.
National Loans explains that for consumers considering taking out a car loan to purchase a new car, there are various aspects to consider, including how much the buyer can afford in repayments, interest rates and the type of loan. If the buyer wants to cut the regular repayments, balloon payment car loans are an option.
Although there are many services for new car loans, the team at National Loans invest extra time and energy with every customer, providing all the resources to help the buyer make an informed decision and find the best fit for their individual circumstances.
National Loans can also provide help accessing a boat loan or caravan loan. For more information, contact National Loans directly.
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