Now could be the best time to buy a car

The demand for cheap car insurance could increase sharply across Australia, after it was revealed that now is the best time to buy a new car.

According to Commsec's chief economist Craig James, vehicles are now at their cheapest for 35 years.

Indeed, he stated that a household on an average wage would have to work for 30 weeks in order to save enough cash to purchase a new Holden Commodore Omega auto or Ford Falcon XT auto.

Mr James also suggested that luxury motors are also becoming more affordable, with many more Aussies now able to buy high-end cars like the Porsche Boxster Roadster.

He said that while there is a degree of doom and gloom surrounding rising living costs, many Aussies do not realise that cars are now so cheap.

"The improved affordability of cars is certainly something that should be celebrated," he remarked.

A recent report published by VFACTS showed that more than one million cars were purchased across the country in 2011.

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