Tag Archives: Industry news

80 per cent of new car shortfall in Queensland and Western Australia

Statistics released by the Federal Chamber of Automotive Industries (FCAI) in September show that falling demand in resource states is affecting new vehicle sales.

New car sales are falling across the country and have decreased by 2.5 per cent for the year to date. However, Western Australia and Queensland are experiencing greater dips than the rest of Australia.

In fact, the latest figures suggest Western Australia has seen an 8.3 per cent dip in new car buyers, while Queensland has seen a 5.4 per cent decrease, and the Northern Territory a 5.3 per cent lower figure.

This drop is believed to be due to economic conditions, FCAI chief executive Tony Weber told Drive.com.au.

“When you see such a variation between states it reflects the conditions in those states,” he said.

He also suggested the mining boom could have created an artificially high base which has now dropped. Sales of light commercial vehicles has dropped, as well.

As of August, the national market for new car sales was 19,307 units behind where it was in the comparative period in 2013. However, 80 per cent of this difference is the result of lower demand in areas such as Western Australian and Queensland, as these states were 15,589 units below the same result in 2013.

This may be good news if you want to sell your vehicle, however, as those turning away from the new car market may begin to consider buying a second hand model. This means there may be more people looking to purchase your car, so you can get a better price for it.

So far, more people this year have been purchasing new passenger vehicles, although this is followed closely behind by SUVs. Small cars remain popular, while demand for light buses is still low.

Fines ahead for dodgy NSW car dealers

Finding a reputable dealer whether you are buying or selling a car is set to become easier in NSW with the established of a new online register.

The NSW government is lining up a number of process that will increase accountability in the industry and give customers a fairer and legal deal. The register will allow motorists to check if dealers hold a current licence and whether there have been any complaints or offences recorded against them.

This will allow customers to make better decisions when selling their car and highlights bad apples in the industry.

NSW Fair Trading minister Matthew Mason-Cox explained that issues during the buying process can lead to safety problems as well as when they decide to sell the vehicle in the future.

“Odometer readings are one of the major factors consumers look at when buying a used car,” he said.

“As part of the changes, the maximum penalty for any dealer or repairer altering a car odometer will be doubled to $22,000.”

Another law to be introduced is that dealers will have to disclosure different information about a vehicle being sold. This means that a potential buyer will be informed about whether the car has undergone modifications because of damage and whether any changes could affect registration or insurance moving forward.

As well as this, the government is going to increase the cap on compensation payouts from $30,000 to $40,000. This means there will be more protection for motorists who purchase second-hand luxury cars, then discover there is a problem with the vehicle.

“We are pleased with the support from industry and are confident that the changes will ensure a more efficient and modern marketplace,” Mr Mason-Cox said.

The reforms should give consumers the confidence to work with dealerships and make good decisions about where to buy a car in the future.

Australia will not be world’s car dumping ground

In a decision that has been welcomed from many corners of the motoring community, the Australian government has given an assurance that the country will not turn into the world’s dumping ground for vehicles.

This was in stark contrast to conclusions made in the Productivity Commission’s final report for their Inquiry into Australia’s Automotive Manufacturing Industry. The commission believed that relaxing restrictions on overseas models would benefit the country’s industry, but this has been slammed from all corners.

In the commission’s report, the proposal was also meant to improve access to cheap second hand vehicles in Australia. However, with the strong Australian dollar and other market influences, used car prices are at their lowest in ten years.

One problem was stated that it would hurt the chances of local motorists selling their cars through dealerships as the market would be swamped with foreign second-hand cars.

FCAI Chief Executive, Tony Weber explained that Australia’s competitive car market and environmental and safety technologies can’t be put at risk for imported vehicles.

“With the significant year-on-year improvements in vehicle technology, it goes without saying that a newer motor vehicle fleet is better for consumers as newer cars are safer, more environmentally friendly and more reliable,” he said.

“The high level of competition is benefiting consumers, with a vast majority of models sold in Australia at a cheaper price than other right-hand drive markets.”

Bringing in additional second hand vehicles could also have a negative affect on the nation’s road toll. With many of these vehicles not up to the tough conditions of our roads, buying an overseas driven vehicle could put safety at risk.

“No decision has been taken by the Australian Government to reduce these restrictions and we have no intention of allowing Australia to become the dumping ground for other countries’ old secondhand vehicles,” Federal Industry Minister Ian Macfarlane said in a statement.

Will Australians soon be able to buy cars online?

The Australian Government is considering a move that will allow citizens to purchase a car through an offshore website rather than waiting for it to be imported into the country.

Currently, Australians must go through a local dealership or purchase their cars privately.

The new ruling would make Australia the first country in the world to let its citizens order cars online, and is not proving popular in the car industry.

“Why does the Federal Government want to make Australia the first country in the world to do this? If it wants to make cars cheaper, it should scrap the Luxury Car Tax,” Richard Dudley, chief executive officer of the Australian Motor Industry Federation told News Corp on September 4.

The move may increase the cost of cars, however, as foreign cars are expected to cost $12,000 to ship and process and this price is on top of the purchase price of the car.

If the law change does go ahead, it could be good news if you want to sell your car as the public may turn towards cheaper models rather than paying the additional cost.

Not only that but these foreign imports will not have any warranty, making them a less secure deal. Cars sold in Australia will be covered under consumer law. This means you may be able to get some remedy if there are problems with the car itself, and the manufacturer would have to put right the fault, deficiency or failure to meet an obligation.

Another issue that is on the debating table is the idea that the cars being imported would be required to match up to UN design standards, rather than the Australian-specific design rules currently in place.

Guide to assist with buying used vehicles

If you are considering selling your car in the near future, it is worth considering what type of vehicle you will buy next.

With the private resale market unlikely to get you enough funds for a brand new vehicle, you could think about investing in a second-hand or used vehicle.

To help the you through this process, the NSW government has released the latest Used Car Safety Guide to offer advice on the best models available. Although there is a misconception used cars aren’t safe, the large majority of vehicles featured provide a sound level of protection.

NSW Parliamentary Secretary for Transport and Roads, Ray Williams explained that the guide allows buyers to be confident when purchasing a second-hand vehicle.

“The Guide works by comparing used cars and provides a safety star rating, with five stars being the safest, and one star being the least safe,” he said.

“It includes ratings for all different types of passenger vehicles – small, light, medium and large cars, as well as people movers, vans, utes, and SUVs.”

It is important to note that most of the five star vehicles featured in the guide are available in the market for under $10,000. This means it’s possible to buy a used vehicle for a cheap price that doesn’t compromise your safety.

The guide also issues a special “Safe Pick” rating that is given to used vehicles that include Electronic Stability Control. These cars pose the lowest risk to other road users and are available for a reasonable price.

Mr Williams also said the guide offers information on vehicle safety myths and features to look out for when buying that can help avoid accidents.

“I congratulate the joint effort made by the Centre for Road Safety, the NRMA Motoring Services, road safety regulators and car clubs from around Australia and New Zealand on development of this important Guide,” he concluded.

Research suggests new car trend still decreasing

After months of poor performance in the new car market, a new Roy Morgan Research survey indicates the problem is getting worse.

According to the research, the number of Australian planning to purchase a new vehicle by 2018 has dropped to its lowest level since November 2012.

This could be a concern for many manufacturers, but good news for those selling their used cars. When confidence in the new car market has fallen, it usually points towards an increase of consumer interest in buying second hand vehicles rather than shelling out for a brand new model.

In May, there were approximately 2.17 million potential new car buyers in the market. However, this has dropped to 2.07 million in August and there are no signs of this trend abating.

Industry Director of Automotive at Roy Morgan Research, Jordan Pakes explained buying intentions have also taken a hit in recent months. The survey results reveal that the number of people committing to purchasing a new car in the next year has fallen from 608,000 in July 2014 to 523,000 last month.

“Despite Consumer Confidence starting to stabilise in recent weeks, this has yet to have an impact on our new car buying intentions,” he said.

“Long-term intention now sits at its lowest level since August 2011, while short-term intention hasn’t been this low since February 2010. The Federal Budget in May has certainly impacted peoples’ economic optimism, and ongoing international uncertainty only serves to heighten this sense of gloom.”

With the new car market continues to take a hit, it could be an idea to consider choosing a vehicle out of the AreYouSelling process. These second-hand vehicles are sold at a competitive price and compare well with the options available from newer models.

Essential driving safety tips

Whenever you get behind the wheel of a car, you need to be thinking about safety. Not only will this help keep your vehicle in good nick, bolstering its resale value, it will also work to protect the health and safety of you and others on the road.

Here are some essential driving safety tips to consider every time you’re driving a vehicle.

Driving safely: Essential tips 

One of the first driving safety tips – that is, driving at a safe speed – is incredibly obvious, but that doesn’t mean everybody’s paying attention to the speed limit. Make sure you’re not exceeding the speed limit, and if the conditions are adverse, drive even more slowly.

When you’re on the road, remember to look out for hazards and put your full attention into the task at hand. Don’t let distractions, such as the radio, your mobile phone or even passengers, take your attention away from driving. Remember, using a hand-held mobile phone while driving is illegal.

Speaking of distractions, did you know that driving while fatigued is a huge risk factor for crashing? According to the South Australian government, not sleeping for more than 17 hours affects driving ability to the same extent as having a Blood Alcohol Concentration (BAC) of 0.05. Going without sleep for 24 hours has the same effect as a BAC of 0.10, which is double the legal limit. Before you drive anywhere, make sure you’ve had an adequate rest.

It’s also important to understand how your driving style may affect your safety on the road. Aggressive driving and instances of ‘road rage’ can increase the likelihood of accidents or conflict, so it’s essential to show understanding of other drivers – or if you make a mistake, to apologise with a wave or something similar.

Keep safety tips like this in mind, and you and your vehicle will fare a whole lot better on the road.