Beat the current car price hike!
In recent years, new car pricing in Australia has been kept low and coming to the end of this financial year, dealerships are offering once in a lifetime savings. That could be about to change, with several cars makers warning of currency-driven price hikes.
The value of the Australian dollar has dropped by more than 18% compared to other international markets. It seems car dealers can no longer absorb the cost of unfavourable exchange rates.
Many have been told that the prices of Australia’s favourite models could rise by between $500 and $1,000 – meaning their discounts may not be as generous as they have been in recent times.
Australia’s two largest sources of new motor vehicles are Japan and Thailand which accounts for over 50% of the Australian car market, ahead of South Korea (14.1 per cent), and Europe (12.3 per cent).
Although our favourite car brands wear Japanese and US badges, most utes sold in Australia are made in Thailand. This means the price of the Toyota Hilux and Ford Ranger may be affected by car price hikes soon.
It’s typical for car brands to buy foreign currency up to 12 months in advance to avoid exchange rate fluctuations, but they are now reaching the end of their access to “hedged” funds, which locks in exchange rates over a set period.
If you are in the market for a new car now has never been a better time. To see if a Novated Lease is right for your situation, check out our end of financial year pricing here.