Story in partnership with Savvy.
If you’ve been planning on buying a new car this year, you’re not alone. Aussies are stepping on the metal when it comes to new car sales.
More than 95,256 new vehicles were sold in Australia in August, up 17.3% from the same period last year, according to the latest data from industry-leading automotive body FCAI. . Sales are the highest August result since 2017.
While the supply of new cars remains a problem for many models – the average wait time is 159 days (165 in New South Wales) – experts say the sales figures are a sign that the market is improving.
So? Ready to get started on new wheels? While things are looking up, the current state of the market means buyers still need to take a smart approach to getting the best deal.
Do your research
With such pent-up demand for new cars, it’s become a very competitive race for buyers in the market, especially for people wanting to make their next car electric.
You can get a head start by making sure you’ve done plenty of preparation beforehand.
One of the first steps is knowing your budget, so you know how much you can afford to spend on your next car. This will help you choose a new or used car loan that’s right for you, then apply for pre-approval, so you’ll be ready to jump in when a good car deal becomes available.
When it comes to making sure you’re getting the best price on a new car, knowledge is everything. Resist the frenzy of today’s seller’s market by doing your research to find out what represents a good price for the vehicle you are interested in.
Time to get electrical?
It’s no longer just a question of which model of vehicle you want, but also of going electric.
Accelerating adoption of electric vehicles is one of the headlines in the FCAI’s numbers.
In August, electric vehicle sales accounted for 4.4% of the total market – the highest market share for pure battery electric vehicles ever recorded in a single month in Australia.
Since the start of the year, electric vehicles have represented 2% of the total market, hybrids 7.6% and plug-in hybrid vehicles 0.6%. Combined electrified vehicles represent 10% of total sales in 2022.
While the variety of electric vehicles on offer in Australia is growing rapidly, it was Tesla’s Model 3 that was the most popular in August – it was the fourth best-selling model, behind the Toyota Hi-Lux, Ford Ranger and the Toyota RAV4 and in front of the Toyota Land Cruiser.
There are many reasons fueling the renewed interest in electric vehicles, from the soaring cost of petrol and more accessible prices as more models arrive in Australia, to the strengthening of charging infrastructure and in support of the government.
It is expected that more low-end electric vehicles will become increasingly available in Australia. There are already models under $50,000 and the options will continue to grow rapidly over the next few months.
The cheapest currently on the market is the MG ZS for around $44,000 but the competition is heating up. The Tesla Model 3 is currently the top seller, followed by the Hyundai Kona.
If you’re considering an electric vehicle but have never driven one, get out there and test drive it or rent one for the weekend.
Incentives to switch to the electric avenue
With further interest rate hikes underway and the end of the government’s temporary fuel tax halving on September 28, the benefits of plugging into an electric future are sure to become more attractive.
Although the still relatively high costs of electric vehicles may be a disincentive for many buyers, federal and state governments are offering incentive programs to encourage adoption and save buyers money.
The NSW Government is offering rebates of $3,000 for the first 25,000 new battery electric and hydrogen fuel cell vehicles with a rateable value of less than $68,750.
This incentive, along with the abolition of stamp duty, will save eligible EV buyers up to $5,540 and is intended to help drive EV adoption to more than 50% of all EV sales. cars by 2030-2031.
Meanwhile, the new federal government has announced plans to exempt certain electric vehicles from employee benefits tax (FBT) and import duties to help bring prices down.
It is estimated that a $50,000 EV model would be more than $2,000 cheaper due to the removal of the import tariff alone.
Story in partnership with Savvy.