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Car Sales and Car Loans Up in Jan 2010

Vehicle sales were up 11% in January

New motor vehicle sales in Australia began 2010 on a stronger note as government subsidies enticed buyers, automotive figures show.

Sales of passenger cars, special utilities and commercial vehicles were 74,864 in January, up 11.6 per cent on the corresponding month in 2009, the Federal Chamber of Automotive Industries (FCAI) said on Wednesday.

The figures are not seasonally adjusted but are the base for the Australian Bureau of Statistics report due on February 22.

"This is a strong result and provides the market with a confidence boost heading into 2010," FCAI chief executive Andrew McKellar said.

"Business purchases remained strong in January, with some buyers taking delivery of vehicles ordered last year under the federal governments business tax break."

Mr McKellar said cars were becoming more affordable, aided by the tariff cut on many imported vehicles.

The federal government lowered the tariff on imported cars from 10 per cent to five per cent January 1st 2010.

"New-car buyers have effectively been handed a "tax cut" and many brands have moved quickly to reduce prices or increase vehicle specifications," Mr McKellar said.

"As a result, it is expected that this will encourage private buyers to return to the marketplace in greater numbers throughout the year."

Toyota continued to be the top seller, with a market share of 19.5 per cent, followed by Holden with 14 per cent and Ford, nine per cent.

Garry Dickesson from AA Family Motors, one of the largest used car dealers in Adelaide South Australia, said that consumer confidence was allowing that to flow on to the used car market as well.

"We have had one of the best Januarys in 25 years, and hopefully is a sign of things to come" said Garry.