Cracking EOFY bargains help new-car market bounce back: June sales strongest since coronavirus pandemic began

The lure of an EOFY year bargain helped make June the strongest month of new car sales since the coronavirus pandemic began, according to official data from the Federal Chamber of Automotive Industries (FCAI).

But don't get too excited - sales in June were still down 6.4 per cent when compared to the same month in 2019. But the decrease was much smaller than the 17.9 per cent fall in March, 48.5 per cent fall in April and 35.3 per cent fall in May.

Australians purchased some 110,234 new cars in June, with the lure of serious EOFY bargains thought to have tempted plenty of people into dealerships over the final weeks of the month.

"Some states have seen the easing of COVID-19 restrictions, and this has increased floor traffic through dealerships,” says FCAI chief executive Tony Weber said. “In addition, June is traditionally a very strong month for new vehicle sales. The End of Financial Year campaigns are well known, so it’s an excellent time for businesses and consumers to replace their vehicles.

“In June 2020, this has been reflected in strong results for business purchases, which have increased by 6.3 per cent on June 2019. The extension of the Government’s instant asset write-off scheme has also been a positive influence. This program allows businesses to bring forward tax deductions for eligible expenditure.

“Finally, we have seen a strong surge in marketing activity from both brands and dealerships, who are offering an array of attractive retail packages in a bid to recover from the impacts of the COVID-19 pandemic."

In terms of brands, Toyota finished the month in number-one spot with 22,867 sales - more than double the sales of its closest competitor, Mazda, which finished in second with 9420 sales. Hyundai closed June in third spot with 7737 sales, followed by Ford (7624 sales) and Mitsubishi (7419 sales).

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No surprises when it comes to the best selling nameplates. The Toyota HiLux finished first with 6537 sales, followed by the Ford Ranger, with 5329 sales. Next is the Corolla (3008 sales), the LandCruiser (2909 sales) and the Triton (2721 sales).

While the FCAI is happy to point out the green shoots emerging in the new car market, it is also quick to point out that there is work still to be done, highlighting that June marked the 27th consecutive month of negative growth for new-car sales in Australia.

“Stimulus packages from the Federal Government, such as Job Keeper and Job Seeker, have helped to restore some consumer confidence and supported the small bounce back during June," Mr Weber says. "However, there’s no doubt that the new vehicle industry in Australia is still under high pressure. We’re not out of the woods yet."