Rate cuts 'have a positive impact on the automotive industry'
Recent interest rate cuts appear to have encouraged more Aussies to buy a new car.
According to a new report published by Roy Morgan Research, 624,000 Aussies surveyed in October said they planned to purchase a vehicle within the next 12 months.
This marked an increase of 40,000 on September and was also above the long-term average of 616,000.
Economists had hoped that the Reserve Bank of Australia's (RBA) decision to reduce the national cash rate by 25 points last month would stimulate greater activity in the retail sector and this certainly seems to be the case for car dealers.
Roy Morgan's industry communications director Norman Morris was encouraged by the latest statistics.
"With the industry on track to eclipse the record sales benchmark of 1,049,982 vehicles set back in 2007, it looks like the RBA's October decision to cut the cash rate has had an immediate positive impact on purchase intentions," he remarked.
He suggested that 42 per cent of the respondents who said they would buy a new vehicle in the coming year are currently paying off a mortgage each month.
In the longer-term, 2,171,000 Australians plan to buy a new car in the next four years, the study confirmed.
Mr Morris said cars produced in Australia will prove popular, as will the likes of BMW, Volkswagen, Audi and Mercedes-Benz.
Of course, many Aussies are strapped for cash at the moment and will be looking for ways to drive down the cost of motoring.
When looking for a new vehicle, it is vital that you assess the long-term costs of keeping it on the road.
Models with smaller, more economical engines will not only save you money on fuel, but there is every chance your car insurance policy will be far cheaper too.
Insurers calculate their premiums based on the likelihood of a person having an accident and those with a less powerful engine are deemed to be less risky than motorists who own a fast, high-performance car.
Have a question about car insurance? Ask the money gurus at Mozo Answers.