Car Sales are Bumping Not Slumping! Is the Australian economy motoring?

Over the last few months, we’ve noticed a marked increase in queries for Novated Leases. In fact, the last month has been our busiest ever – our order book is up 21% compared to our average for 2009!

Looking at the broader market, we see that car sales are reaching all time highs,

and Westpac’s consumer confidence index has bounced back sharply.

Even unemployment has taken a dive over the past few months.

So what do you reckon? Are we there yet? Or is your confidence still shaken? After all the stock market is still down about 32% from it’s all time highs. Would you rather save for a rainy day? Or are you as confident as the consumers whom Westpac polls, or as those queuing for a new car or novated lease?

Would be good to know your thoughts.

Leave a comment here

2 Responses to “Car Sales are Bumping Not Slumping! Is the Australian economy motoring?”

  1. 1 shane March 3, 2010 at 6:19 pm

    As a rule Australians have one of the oldest cars on the roads compared to Japan were the turn over is very high. ( I think they replace there cars every 2 years or so) to Australia every 8 or nine. With the resession I feel Aussies were holding of buying a new car untill the economy improved. So if they are buying now there old cars would most likey be driven to old age.

  2. 2 Rob March 15, 2010 at 12:42 pm

    I agree with the comments made by Shane. And add that not only are Aussies holding onto their cars longer because of the cost of replacement, they are well aware of the high costs of fuel (and other items) something which goes up with the price of a barrel but fails to reduce accordingly. With this in mind Aussies cannot afford to continue to upgrade anything so they hold out till the car is on it’s last legs generally. If we were to reduce the cost of replacement (ie like the car makers in Japan can do because people buy local) then we could probably renew more often too.

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Deven Billimoria
Chief Executive Officer

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