New car purchases speed forward with EVs standing out, but supply lags
Recent figures from the Federal Chamber of Automotive Industries (FCAI) show new car purchases at the highest levels for August since 2017.
Last month saw Aussies snapping up roughly 95,256 vehicles, a 17.3% increase on the August result for 2021. This brings the total for cars purchased year-to-date to roughly 717,575 for 2022.
This is an encouraging sign when it comes to economic recovery in the light of COVID-19, as it indicates that people are back spending money on big ticket items.
Electric vehicle makes like Tesla race for dominance
Chief executive of the FCAI, Tony Weber notes the growing role of EVs in the recovering automotive sector.
“EV sales were 4.4 per cent of the total market. This is the highest market share for pure battery electric vehicles ever recorded in a single month in Australia. … Combine electrified vehicles now just over 10% of total sales in 2022,” says Weber.
Of that, Tesla numbers are especially striking, selling 3,397 vehicles. The Tesla Model 3 was one of Australia’s top 5 vehicles for the month in sales, along with perennial favourites the Ford Ranger, the Toyota Hi-Lux, Landcruiser and RAV4.
The growing demand to get fossil fuel-powered vehicles off the road is trickling through to consumers, with greater support being slowly felt by the public.
Bank Australia’s plan to phase out car loans for new petrol and diesel vehicles is just one of many ways banks are signalling their support for green car financing. Lenders like Pepper Money are also offering incentives like 12 months of free charging with their car loans to incentivise EVs over other cars. Federal announcements for tax breaks and cuts to import tariffs could also provide much-needed help.
There is one small thing standing in the way of the growth in sales, no matter what car you’re trying to get your hands on - supply.
New car supply still slowed to a crawl
Though the numbers continue to rise for cars being purchased, Australia is still dealing with major delays in new car supply.
Second-hand cars remain in serious demand, as companies like Toyota can operate between a 12 and 18 month delay for new cars. Product backlogs and waitlists make purchasing a new car a serious undertaking.
Editor-in-chief of Carsales, Mike Sinclair, notes that the global industry is also shifting towards an EV-based production line, which could be slowing the ability of car manufacturers to invest in existing models.
There is still no solution in sight to global chip shortages and ongoing fuel price costs, and no clear answer to when car supply might start to look normal again. Still, it looks like many Aussies are willing to wait.
If you’re also looking to jump into the car market, take a look at Mozo’s best car loans.
Compare car loans - last updated 3 May 2024
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Used Car Loan
Fixed, Secured, No vehicle age limit
Interest rate
comparison rate
Monthly repayment6.57% p.a.to 18.99% p.a.7.19% p.a.to 21.78% p.a.based on $30,000
over 5 yearsGet a competitive fixed interest rate on a secured used car loan of up to $75,000 depending on your credit score. No vehicle age limits. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.
CompareCompare- Interest rate
- 6.57% p.a.to 18.99% p.a.
- comparison rate
- 7.19% p.a.to 21.78% p.a.based on $30,000
over 5 years
- Interest rate
- 6.57% p.a.to 18.99% p.a.
- comparison rate
- 7.19% p.a.to 21.78% p.a.based on $30,000
over 5 years
- Upfront fees
- $250.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- 0
- Minimum loan amount
- $2,001.00
- Maximum loan amount
- $75,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read our Mozo Review to learn more about the OurMoneyMarket Used Car Loan
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New Car Loan - Special
Home Owner Discount, Including Demo, Variable, Secured
Interest rate
comparison rate
Monthly repayment6.24% p.a.7.36% p.a.based on $30,000
over 5 yearsLow variable car loan rate for purchasing new and demo vehicles from dealers. Personalised loan amounts between $5,000 and $150,000. Flexible repayment options. Choose between the 3 to 7 year loan terms. Good credit history. Stable employment history and Australian citizenship or PR required.
Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.24% would cost $35,880.27 including fees.
CompareCompare- Interest rate
- 6.24% p.a.
- comparison rate
- 7.36% p.a.based on $30,000
over 5 years
- Interest rate
- 6.24% p.a.
- comparison rate
- 7.36% p.a.based on $30,000
over 5 years
- Upfront fees
- $400.00
- Monthly fee
- $8.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $700.00
- Minimum loan amount
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- $150,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read our Mozo Review to learn more about the loans.com.au New Car Loan - Special
-
New Car Loan
Fixed, Secured
Interest rate
comparison rate
Monthly repayment6.57% p.a.to 18.99% p.a.7.19% p.a.to 21.78% p.a.based on $30,000
over 5 yearsGet a competitive fixed interest rate on a secured new car loan of up to $75,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.
CompareCompare- Interest rate
- 6.57% p.a.to 18.99% p.a.
- comparison rate
- 7.19% p.a.to 21.78% p.a.based on $30,000
over 5 years
- Interest rate
- 6.57% p.a.to 18.99% p.a.
- comparison rate
- 7.19% p.a.to 21.78% p.a.based on $30,000
over 5 years
- Upfront fees
- $250.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- 0
- Minimum loan amount
- $2,001.00
- Maximum loan amount
- $75,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read our Mozo Review to learn more about the OurMoneyMarket New Car Loan
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New Car Loan
Fixed, Secured, Excellent Credit Score [832+]
Interest rate
comparison rate
Monthly repayment7.29% p.a.to 7.79% p.a.8.00% p.a.to 8.50% p.a.based on $30,000
over 5 yearsEnjoy a quick application process and no monthly fees on NRMA new car loans. Finance also available motorcycles, caravans and motorhomes. Low fixed interest rates with terms of up to seven years. Plus, NRMA Blue Member benefits apply so you could enjoy even lower rates as an NRMA Member**.
Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 7.29% would cost $36,387.95 including fees.
CompareCompare- Interest rate
- 7.29% p.a.to 7.79% p.a.
- comparison rate
- 8.00% p.a.to 8.50% p.a.based on $30,000
over 5 years
- Interest rate
- 7.29% p.a.to 7.79% p.a.
- comparison rate
- 8.00% p.a.to 8.50% p.a.based on $30,000
over 5 years
- Upfront fees
- $499.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
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- Fortnightly, Monthly
- Early repayment penalty
- $325 (no fee payable in the last 6 months of the loan term).
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- -
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read our Mozo Review to learn more about the NRMA New Car Loan
-
Used Car Loan
Up to 5 years old, Variable, Secured
Interest rate
comparison rate
Monthly repayment7.74% p.a.8.85% p.a.based on $30,000
over 5 yearsUsed Car Loan with no monthly or ongoing fees, with a fixed rate for the life of the loan. Fast online application. Good credit history. Stable employment history and Australian citizenship or PR required.
Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 7.74% would cost $37,153.94 including fees.
CompareCompare- Interest rate
- 7.74% p.a.
- comparison rate
- 8.85% p.a.based on $30,000
over 5 years
- Interest rate
- 7.74% p.a.
- comparison rate
- 8.85% p.a.based on $30,000
over 5 years
- Upfront fees
- $400.00
- Monthly fee
- $8.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $700.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $150,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read our Mozo Review to learn more about the loans.com.au Used Car Loan
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* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
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