It appears that new motor vehicle sales in Australia began 2010 on a stronger note as government subsidies enticed buyers.

Sales of passenger cars, special utilities and commercial vehicles were 74,864 in January, up 11.6 per cent on the corresponding month in 2009, the Federal Chamber of Automotive Industries (FCAI) said on Wednesday. In December 2009 the sales were up over 15% on the corresponding month a year earlier. It will be interesting to see how future months go during 2010.

These figures are not seasonally adjusted but are the base for the Australian Bureau of Statistics’ report due on 22 February 2010.

“This is a strong result and provides the market with a confidence boost heading into 2010,” FCAI chief executive Andrew McKellar said.

“Business purchases remained strong in January, with some buyers taking delivery of vehicles ordered last year under the federal government’s business 2009 tax break.”

Mr McKellar said cars were becoming more affordable, aided by the tariff cut on many imported vehicles.

The federal government lowered the tariff on imported cars from 10 per cent to 5 per cent on January 1, 2010.

“New-car buyers have effectively been handed a ‘tax cut’ and many brands have moved quickly to reduce prices or increase vehicle specifications,” Mr McKellar said.

“As a result, it is expected that this will encourage private buyers to return to the marketplace in greater numbers throughout the year.”

Toyota continued to be the top seller, with a market share of 19.5 per cent, followed by Holden with 14 per cent and Ford, nine per cent.

Finance has been steady with rates holding at the moment. You can still get loans in the 8 to 9 per cent mark. The financiers are doing this for customers that have strong credit history, good asset backing and great cash flow. 

New Cars Brisbane, Gold Coast, Ipswich, Sydney, Sunshine Coast.