Car buyers defy uncertain times

Record sales: Tim Cleary from South Coast Automotive with one of the makes that is selling so well.

Scott Powick

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SOME Tweed car dealers are reporting some of their best sales records in the past month as Tweed and southern Gold Coast residents shake off concerns about the economy and uncertainty over which political party will run the Federal Government.

Others, however, are warning the district's economy is not yet “out of the woods” and are hoping the property and construction markets will soon pump more money into local pockets.

Nationwide car sales during August were 12.1 per cent higher than during the same month last year, with some dealers tipping an all-time record sales year for 2010.

It is a major turnaround from a disastrous sales year in 2009, with new car sales so far this year standing at just under 700,000 nationally – 15.2 per cent higher than at the same time last year.

Nationally the car industry is tipping a yearly total that could better the all-time record set in 2007.

“We've had constant growth for the whole year,” said sales manager Martin Wells of Mazda dealer South Coast Autos at Tweed Heads.

Mr Wells said his dealership had its “best ever” July followed by another strong sales month in August.

He put the sales down to Mazda's reputation and quality along with national people's choice awards for the Mazda 2, Mazda 3 and Mazda 6 models.

Some dealers however described the market as patchy and declined to comment “just yet”.

Dealer principal of Surf Toyota, Simon Murphy, was pleased with results but warned it was not time to celebrate.

“We have definitely come out of the global finance crisis, but we have got to look at this year correctly and not forget there was a carry-on effect as a result of government incentives,” Mr Murphy said.

“Whilst certain sections of the economy are booming, our construction industry is still waning. Trades people who buy utilities are still reluctant to come back into the market.

“I don't think we should be popping the champagne corks yet.”

Federal Chamber of Automotive Industries chief executive Andrew McKellar said buyers had been unperturbed by political uncertainty and sales to private and government buyers were up more than 20 per cent. This compared to August car sales in the US, which were down 20 per cent on last year.