Australia's Love Affair With New Cars Could Be Ending

Getty/Andreas Rentz

The ABS has just released the sales of new motor vehicle data for February, which showed a seasonally-adjusted rise of 0.1%.

But equally it highlighted the acceleration in the seasonally-adjusted fall from the year before to 3.5% from 3% last month.

It could be argued new vehicle purchases have been as much of a boon to the Australian economy since the depths of the GFC as the mining boom — certainly a lot of car yards around the country would agree.

Consumers buying new cars is a sign they are doing okay financially, and feel comfortable with where they see the economy.

From a low of just above 900,000 units per annum (around the low point in the stock market) to a high of more than 1.1 million units per annum, Australian consumers and businesses were signalling they were fairly comfortable to purchase and invest.

But it appears the love affair is ending:

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