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VFACTS May 2021: New-car sales results continue to show signs of recovery

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New-car sales continue to show signs of
a strong recovery as the Australian economy bounces back from coronavirus lockdowns and border restrictions imposed through much of last year.
Official new-car sales figures for May 2021 released today show demand for new motor vehicles has returned to pre-COVID19 levels, but it was the
second-best May result rather than
a record.
A total of
100,809 new vehicles were reported as sold in May 2021, an increase of 68.3 per cent compared to the disastrous May 2020 result posted in the grip of the coronavirus crisis.
May was only the second month this year to eclipse 100,000 new-car sales, and it was the third time in three years May has been in six-figure territory. ....

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VFACTS May 2021: Kia overtakes Ford and Hyundai, now it has severe stock shortages

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in a major upset that catapulted the brand to third place in the new-car sales race in May 2021.
It is the
second time it has ranked in third place, and the
third time it has beaten Hyundai.
Kia reported a record 7124 vehicles as sold in May 2021, a year-on-year increase of 158 per cent in a market that lifted by 67.5 per cent following sharp slowdowns this time last year.
Significantly,
Kia has also overtaken Ford in the year-to-date sales tally for the first five months of 2020.
And Kia is within 1300 sales from Hyundai s year-to-date sales tally, the closest the two jointly-owned brands have been in the Australian market. ....

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Holden's shock departure prompts new laws to give car buyers peace of mind in future

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Australians may still be in shock over
the sudden axing of the Holden brand – and the closure of more than 200 Holden dealerships – but
overhauls to franchise laws announced today will make it harder for multinational car companies to close local showrooms and service centres.
The changes – which come into force from
1 July 2021 – mean new-car buyers can shop with certainty knowing their local car showroom and service centre can only be shut down in special circumstances.
Further, car giants face financial penalties that can amount to
millions of dollars if they break dealer contracts earlier.
The sudden departure of Holden in 2020 – despite decades of state and federal government financial assistance – put a spotlight on the imbalance between local car dealers and multinational car companies. ....

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New-car buyers are getting used to paying top dollar and waiting months amid semiconductor shortage – report

top dollar and waiting weeks
or months to take delivery of their new vehicle due to
stock shortages and delays caused by the global semiconductor crisis.
A study by a US automotive industry analyst firm claims new-car buyers
struggled with the long lead times
at first, but are slowly getting used to paying full retail prices and dealing with limited vehicle supply.
Industry insiders believe current stock shortages will last for the remainder of this year, and we may not see
a return to sharp discounting until next year.
In Australia, some customers have
cancelled orders in frustration because they don’t want to wait months to take delivery of a new car, but the majority are now prepared to wait, say dealer sources. ....

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Federal Budget good news for new-car buyers and tradies: Here's what you need to know

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Tradies and small businesses
waiting for cars delayed by severe stock shortages have been given more time to take delivery of their new vehicles after the Federal Government announced
another extension of the instant asset tax write-off scheme.
The scheme enables eligible tradies and businesses – with a turnover of less than $5 billion – to claim as an expense big ticket items, such as work vehicles,
in one financial year rather than over the usual five years.
The tax incentive was expanded in 2020 to
stimulate the economy during the peak of the coronavirus crisis.
In last night’s federal budget, the government extended the deadline again. ....

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