Has the news that new cars are at their most affordable for 35 years spurred you on to buy one? Our Tamworth Branch Manager Katie Whatley talks new car loans.
New research by economist Craig James (see his article in Switzer news here) shows cars are more affordable now than at any time in the past 35 years.
If you are an average wage earner you have to work for ten weeks less than you did a decade ago to buy a new Holden Commodore Omega auto or Ford Falcon XT auto. Luxury cars are also much more affordable today.
That is amazing when you think about it. Everything else seems to be going up in price.
If you are an average wage earner today you have to work for around 30 weeks to buy the Commodore or Falcon. You would have had to work two weeks more (32 weeks) 18 months ago to make the same purchase the same vehicle. Ten years ago you would have needed to work for around two months longer (a total of 40 weeks). And, as Craig James points out, this vehicle would actually be a better vehicle today with more features (automatic windows/doors, iPod connectivity, DVD players, GPS, parking sensors/cameras and air bags) and improved safety.
James says that the stronger Aussie dollar is helping with car affordability. The reduction in tariffs has also helped.
The findings were obtained by tracking the prices of new cars that have been published in the NRMA Open Road magazine over time and originally sourced from Glass’s Guide. The car prices have been compared with data on average weekly earnings to derive measures of car affordability.
The point is, maybe it is time to buy a new car. The Greater’s New Car Loan has a 5 Star rating from Canstar Cannex, a very competitive interest rate, and great features.
See our earlier blog which has some tips on getting the car loan that is right for you.