Local car market in trouble

NEW-CAR buyers may be in for an early Christmas treat as overburdened dealers rush to clear 2008 stock.

Buyers can expect heavy discounts as the slump in new-car sales takes hold.

There have been softenings in the car market†before but there’s not been the abrupt drop in sales.

A†month or two it’s gone from all-time record levels to a dramatic slump in sales and there is†no indication that†the environment is†going to improve.”

New-car sales were down 10 per cent last month and inventory levels are rising.

The figures show†the new car market is in severe decline, with 79,105 vehicles sold last month, down 10,184 sales or 11.4 per cent on October 2007.

Many brands have been hit hard, among them Mazda, Kia, Hyundai, Mercedes-Benz and Lexus.

Mazda, which has been a sales star in recent years, reported a 24 per cent sales drop last month.
Budget Koreans Hyundai and Kia experienced a 35 per cent and 31 per cent sales plunge.

Lexus sales fell more than 60 per cent last month and Mercedes-Benz sales were off 43 per cent.

Many luxury marques blame the negative impact of the new Luxury Car Tax, which rose 8 per cent to 33 per cent from July 1.

Holden also reported an 11 per cent drop for the month.