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Strong November
Despite all the doom and gloom in the automotive industry, we’ve just recorded a very strong month in terms of enquiry. In fact for the first time since 2003, last week we actually deliberately put the brakes on some of our online activities to ensure that service levels didn’t drop due to us being too busy with fresh enquiries.
Unfortunately sales have not quite kept pace with this flood of enquiries. Whilst they are up around 20% on this time last year, enquiries are really going gangbusters & have recorded an increase closer to 50%.
Ironically it seems as if its the economic environment which has affected this fall in conversion. Quite simply, dealers and manufacturers are desperate and many are offering discounts the like of which have never been seen before. Just this morning I got an email from a Ford dealer offering a discount of 40% on a new car! Sure that was a fleet only deal (ie just for Private Fleet clients) but is still way in excess of what we would have previously expected in our wildest dreams. The price they were offering retail clients was not all that much higher.
When deals are that good, there’s not that much more we can do in terms of pricing. Delivery dates maybe, convenience almost certainly but if it’s down the the bone price-wise, our hands may be somewhat tied.
Moral of the story: There has never been a better time to buy a new car. For the vast majority of makes and models it’s a buyer’s market and there’s fantastic value to be had. You will probably be able to get a great deal negotiating independently… give us a call by all means just don’t expect the impossible and remember, if we can’t save you money there’s no obligation whatsoever to go ahead. Last but not least – Happy Shopping!
Good News for Australian Car Industry!
At last some good news to report for the Australian car industry!
Kevin Rudd announced today a $6 billion package to safeguard the car industry in Australia. Whilst significant assistance was expected following the Bracks review, the size of this ‘bailout’ has come as quite a surprise to many industry experts.
The package, intended to stem further job losses in manufacturing as well as steer the industry towards a more eco-friendly and sustainable future has won support from unions, car makers and consumers across the country.
Here are the key points:
- $3.4 billion assistance program from 2011 to 2020;
- $79.6 million to the Automotive Competitiveness and Investment Scheme to smooth the transition to a greener automotive industry;
- $116.3 million to improve competitiveness in the automotive component manufacturing sector;
- $20 million from 2009-10 to help suppliers improve their supply chains;
- $6.3 million from 2009-10 for an enhanced market access program;
- A new Automotive Industry Innovation Council comprising key industry decision makers to drive innovation and reform; and,
- An immediate $10.5 million expansion of the LPG vehicle scheme that doubles payments to purchasers of new vehicles using LPG technology.
Importantly Rudd has confirmed that the planned reduction in the automotive tarrifs from 10% to 5% will go ahead in 2010 which is fantastic news for Australian car buyers.
New Car Sales Crash!
Well figures released today confirm what most in the industry had been expecting. A big fall in new vehicle sales for October.
Precisely 79,105 new vehicles were delivered in October down 11.4% on the year below. Year to date, sales are down just 0.9% compared with this time in 2007. Of course we all know why the sudden drop – the global economic downturn is making Australians have second thoughts before making such a purchase.
It’s interesting to ponder whether people are forgoing these purchases because they actually have less cash to spend or is it the fear of what the future holds that is keeping them back. I suspect it’s the latter more than anything which is a worry in itself as every industry suffers when confidence is stripped back.
I doubt next month’s figures are going to look all that much better either. Interest rate cuts should help in some ways but it’s important to remember that with new vehicle sales, deliveries are (on average) usually around a month or so from the order. So October’s figures really represent many commitments that buyers made in September. So there could be more bad news to report this time next month.
The irony is, however that due to this fear & falling profits manufacturers and dealers are keener than ever to move stock and as such we’ve been seeing some pretty unusual levels of discounting. In fact, you could say it’s a buyer’s market out there after all.
VE COMMODORE
The Holden VE Commodore holds a special place in the hearts of all Australians. It is a true piece of Australiana and we can take pride in the fact that this vehicle is 100% home grown.
The VE Commodore is renowned for being the ideal family car, not only because of its exemplary safety features but because of its reasonable price, reliability and comfortable interior.
The new VE Commodores have all the same safety features as the old VZ model, including ABS, electronic brake distribution, brake assist, dual airbags and independent rear suspension.
But the even better news is that curtain airbags and ESP (electronic stability program) will be standard in the new model VE Commodore.
The new models include the Omega, the SS V, and the Calais V, all of which are available for less than $60,000. (Not including on-road costs)
No wonder this vehicle is Australia’s bestselling car.
The new SS V is sure to be a hit with customers, with a 6.0 litre V8 engine; this model is available in six-speed automatic and six-speed manual. It is the most powerful standard Holden ever produced.
The 3.6 litre V6 in the Omega is expected to be the biggest seller for Holden, and is available for as little as $34,990.
Finally, the Calais V is only available in automatic transmission, but is available in both V6 and V8 engines. With more luxury than ever before this powerful vehicle will feel more like an Audi or a BMW than a Holden.
The interior of the VE Commodore is a sight for sore eyes. The sports car-like seats, and the smooth, sophisticated finish gives this car the feel of a much more luxurious (and expensive) vehicle.
The new range is also fitted with all-new heating, ventilation and air-conditioning systems, and Bluetooth is standard on all models except for the Omega. So if you’re looking to upgrade and want more for your money, the VE Commodore range is for you.
For Commodore lovers and first-time buyers alike, this car will not disappoint. The VE Ute provides an alternative for those looking for something with a bit more usability.
Level 2, 9 Help Street