Territory Stories

The Northern Territory news Sat 23 Jan 2010



The Northern Territory news Sat 23 Jan 2010

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NT news


The Northern Territory news; NewspaperNT




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Community newspapers -- Northern Territory -- Darwin; Australian newspapers -- Northern Territory -- Darwin

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Nationwide News Pty. Limited

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Copyright. Made available by the publisher under licence.

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Nationwide News Pty. Limited



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6 Northern Territory News, CARSguide, Saturday, January 23, 2010 P U B : N T N E W S D A T E : 2 3 -J A N -2 0 1 0 P A G E : 3 0 6 C O L O R : C M Y K TIME RIGHT TO GO USED DO A DEAL: A flood of trade-in vehicles is expected to hit the market By MARK HINCHLIFFE N OW could be the time to buy a secondhand car, ute or van. As businesses take delivery this year of new cars bought under the Governments business tax break which ended in December, a flood of trade-in vehicles is expected to hit the market, driving prices down. David Scognamiglio, boss of vedaauto.com which monitors automotive credit trends, said there would be an oversupply of traded-in business vehicles and some great deals in the used-car market this year. Vedaauto.coms Automotive Credit Demand Index for December showed credit for new vehicles rose 10 per cent compared with the previous December while used car credit dropped 7 per cent. While overall automotive credit demand rose a modest 0.9 per cent in December from the previous month, business vehicle credit applications increased 20.6 per cent. The average business car loan amount also increased by $1462 from $43,471 in 2008 to $44,933 in 2009 with a spike of $46,111 across the final quarter, accord ing to the data compiled from Veda credit applications and the National Vehicle Information System. AP Eagers Group state general manager Keith Thornton said the best buys were in utilities, vans and light commercial vehicles. Certainly there are a lot of used cars coming into the market so its a fantastic time to be buying used, he said. We noticed quite a spike in trades toward the end of the year so we have a lot of stock. Theres a real mix of cars available, but obviously because of the incentive scheme we saw a lot of business buyers so there are more used commercial vehicles than normal. Used car dealer Alex Salter said there would be good buys in the market, but not bargains. We havent seen a flood of good used cars hit the market yet. We anticipated it but we havent seen it just yet, he said. We are hoping that they will turn up but at the moment we are still paying a premium for good quality used cars. Industry wins with a scrap GOVERNMENT incentives saved Europes new car sales from oblivion last year, but forecasters warn of uncertain times ahead. In Australia, government incentives limited the crash in new car sales from an expected 25 per cent to 7.4 per cent last year, but in Europe they kept sales to just 0.7 per cent down on 2008. While our incentives were a tax break for business, the European governments offered a variety of scrappage programs which gave cash bonuses to buyers to get rid of old cars. But industry analysts JATO Dynamics warns of tough times for the car industry when scrappage systems end. It says sales in Germany shrunk 4.6 per cent in December after it closed its scrappage incentive scheme which hade contributed to a 23.9 per cent annual rise. This compares with a 72.9 per cent drop in Latvia which did not have a scrappage scheme. The Australian auto industry last year called on the Government to use a scrappage system that includes recently used cars. However, Federal Chamber of Automotive Industries boss Andrew McKellar this week said the governments business incentive had been effective and there was no need for another scheme to take its place after it expired at the end of last month. It is estimated that 80,000 vehicle sales were the result of the Governments stimulus package. The tax break wasnt targeted at the car industry but at smaller general business across the board, nonetheless that did have benefits for the car industry indirectly, McKellar said. The tax break has been effective, but realistically we are not in a position now where the government is likely to contemplate new and additional measures. The scrappage system worked well for Europe but it has to recognised that it is an expensive police measure that may be not sustainable. In Australia we have a more sustainable economic profile, riding out the worst of the downturn in demand. Hopefully we are now in a position where private buyers are coming back into the market and we can consolidate, provided economic recovery continues to give momentum. The key thing now is that there is a balanced and proportionate response in monetary policy and no interest rate rises too rapidly which could shake off the early recovery. Analysts believe European scrappage schemes assisted sales of small cars more than bigger more expensive vehicles. Best sellers TOP FIVE EUROPEAN MODELS 1 Volkswagen Golf . . . . . . 571,838 2 Ford Fiesta . . . . . . . . . . 472,091 3 Peugeot 207 . . . . . . . . 367,160 4 Renault Clio . . . . . . . . 312,925 5 Volkswagen Polo . . . . . . 282,780 TOP FIVE EUROPEAN BRANDS 1 Volkswagen . . . . . . 1,640,451 2 Ford . . . . . . . . . . 1,288,367 3 Renault . . . . . . . . 1,087,712 4 Fiat . . . . . . . . . . 1,009,623 5 Opel/Vauxhall . . . . . . 1,057,313 Support this feature which will include driver profiles, autograph section, full competitor list and more. If you are involved in models, apparel, restaurants etc, this feature is for you. Reach the thousands of visitors coming to Darwin for this event To reserve your space contact DAVID PAGE on 0448 667 375. Publication date: Tuesday 25th May P: 8944 9838 F: 8941 7559 E: paged@ntnews.com.au BOOK NOW - LIMITED SPACEBOOK NOW - LIMITED SPACE

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