Car Sales Reach New Highs after Interest Rate Cuts
Finance Funding Australia
Home Loan, Car Finance, Property Loans
The Reserve Bank’s recent interest rate cuts have spurred a new high in car sales, and a modest increase in home loans. To buy their cars, consumers will benefit from finance funding like those offered by Finance Funding Australia, a company that specializes in low cost car loans.
Australia’s recent interest rate cuts have spurred new highs in car sales. However, the number of home loans only increased modestly after the rate cuts.
Car sales have increased by 4.1 percent from August 2012 to September 2012. This represents the highest level of car sales since 1994. People bought almost 99,000 cars in September, representing a 14 percent increase over the same period last year. Cars have become the most affordable they have ever been since the 1970s. This affordability combined with the recent interest rate cuts have seemingly prompted consumers to update their cars.
Sales of sports utility vehicles grew more than 20 percent over the same period last year. Sedan car sales increased 3 percent and commercial vehicle sales went up 9 percent from last year.
Compared to home loans, car sales are increasing much faster due to the rate cuts. Home loans crept up 1.8 percent in August, continuing a modest trend upward. Construction or purchase of new dwellings combined increased 4.7 percent over the month and over the year, is 10.7 percent higher. Take-up of home loans are expected to continue to increase as the Reserve Bank's past interest rate cuts start to take effect, and further anticipated rate cuts occur in the near future. The number of home loans has trended upward for six consecutive months.
The mining-oriented states of Western Australia and Queensland have had high volumes of home loans in the past, but the pace of growth in both of these regions is slowing down. In August 2012, the number of loans originated by credit unions and building societies fell by 2.1 percent.
Average loan size for all owner-occupiers remained stable at a little over $300,000 in August. This is approximately $12,000 above average for first time homebuyers. First time homebuyers’ market share decreased to 18.6 percent from 19.2 percent in July 2012, the first decrease in six months.
Whether they are in need of another car or a home, consumers will most likely need financing for their big purchases. Finance Funding Australia is one of the firms offering car and home loans. It advises consumers to seek out a good loan consultant to advise them on their loans. Consumers should also avoid a poorly prepared loan application in order to protect their credit score. “It’s important to know your chances of getting a loan approval before you submit an application. Every failed application will affect your credit,” said Justine Milankovic, Owner of Finance Funding Australia.
***About Finance Funding Australia:
Finance Funding Australia (FFA) was formed by a team of consultants with over 17 years of experience in the finance and automotive industry. Their consultants are known for providing superior customer service in all their past and current dealings. FFA handpicks their staff to ensure that customers get the service and respect they deserve, regardless of their credit history.
Finance Funding Australia works by assessing the customer’s profile first and advising them on the best approach. If the customer is interested in moving forward, FFA performs a credit check before submitting an application. This helps the customer avoid being penalized by other creditors. They can also help customers establish their credit history.
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