Now takes only 24 weeks average wage to buy a Falcon

Brazen · 07-01-2016, 03:58 PM

Article about car affordability. Probably cheaper in reality as you can get a Falcon well below retail price.

http://carsales.mobi/editorial/details/ED-ITM-100796

Quote:

ony Weber, the Chief Executive of the Federal Chamber of Automotive Industries (FCAI) has told journalists that it has never been cheaper to buy a new car.

Citing a vehicle affordability study yesterday, Weber revealed that purchasing a new Ford Falcon (pictured) will take an average wage earner 24 weeks in 2015. This is in marked contrast with 2013 (26.2 weeks) and back in 2010 (31.7 weeks).

But with the Australian dollar losing a lot of ground against the greenback in the last couple of years, there's a real chance that affordability will be eroded – especially for buyers looking at something other than the Falcon, which is built in Australia.

"Obviously over 90 per cent of the market from imports are exposed to the exchange rate, but lucky for the consumers... the competition is so red-hot in the market that the prices are still very low " the Chief Executive of the FCAI, told motoring.com.au yesterday.

"And you've got the other advantage that finance rates are very low. Sometimes we even have zero per cent finance rates. That's what's driving the market – because competition is so strong prices remain low, despite the depreciation of the Australian dollar."

Weber doesn't see the good times ending anytime soon, either.

"I don't think that people have any strong anticipation that the dollar will depreciate substantially from where it is."

According to Weber, all the indications are that the market in 2016 will remain very strong.

"Interest rates are low [and] there's more and more product coming into the market – we now have over 400 models in the Australian market, which is quite remarkable... We see it remaining strong into the future."

Not even the imminent end of local production in Australia will slow the market significantly, Weber predicted.

"Whilst [we have] had four really strong years in a row, we see that continuing."

Tony Cramb, Toyota Australia's Executive Director of Sales and Marketing, was also present for yesterday's announcement of total vehicle sales in Australia for 2015. He told journalists present that he was similarly confident the market would bear up in 2016. Toyota forecasts another year above 200,000 sales, which seems quite a conservative estimate if the overall market grows again.

"We see nothing in the economic environment, which would change the situation dramatically from where it is at the moment," Cramb said. "We were frankly a little bit surprised how high this year was, but there are no fundamental changes that we can see that would affect the market..."

As relatively benign as the country's economy may be – and more than perhaps the public perceives it to be – some brands in the local automotive market are struggling.

VFACTS figures reveal that almost every single FCA brand (including Jeep) sold fewer vehicles in 2015 than in 2014. It was the same for local manufacturers Ford and Holden – with Toyota only earning itself a reprieve by pushing Camry out the door with zero per cent finance. Sime Darby's two French brands, Citroen and Peugeot, both lost sales volume. Ssangyong and Proton also posted lower sales last year than in 2014. And two Chinese brands, Chery and Great Wall, left the market altogether.

What we can expect to see is new brands entering the market and selling so aggressively that they put other brands under considerable pressure. The local manufacturers aren't the only brands that may have to reinvent themselves in a tougher business environment.

But that should be good news for the consumer.

Wretched · 07-01-2016, 04:13 PM

That may be true for car sales but doesn't include external costs outside of a car that are rising more and more.
Energy prices, council rates, insurance (health), etc. All are going up, some 3 times CPI and would negate the "cheap" price of a car.

RANGEREST · 07-01-2016, 04:33 PM

Quote:

Originally Posted by Wretched

That may be true for car sales but doesn't include external costs outside of a car that are rising more and more.
Energy prices, council rates, insurance (health), etc. All are going up, some 3 times CPI and would negate the "cheap" price of a car.

Thread is about buying a Falcon,
cost of living is another subject all together .

Wretched · 07-01-2016, 04:38 PM

Quote:

Originally Posted by RANGEREST

Thread is about buying a Falcon,
cost of living is another subject all together .

Understand, but each of those have influence on the type of car people buy.

But if you want to be pedantic, the topic of the article is around the prices of new cars in general.

TheSneakiness · 07-01-2016, 04:42 PM

Love to know what they deem "average" is cause I guarantee you its not what I bring home each month.

wodahs · 07-01-2016, 04:54 PM

[QUOTE]Citing a vehicle affordability study yesterday, Weber revealed that purchasing a new Ford Falcon (pictured) will take an average wage earner 24 weeks in 2015. This is in marked contrast with 2013 (26.2 weeks) and back in 2010 (31.7 weeks).[QUOTE]

soon it be 0 weeks of an average wage as soon there be no falcon

to soon

sorry

but yes how many get an average wage and whats considered an average wage and how realistic is it

and as stated with all other house hold bills how realistic is it really for the average person that not on the average wage

**98TLS** · 07-01-2016, 04:57 PM

Quote:

Originally Posted by RANGEREST

Thread is about buying a Falcon,
cost of living is another subject all together .

So...give up living for 24 weeks and we can all buy a new Falcon.

**GasoLane** · 07-01-2016, 05:41 PM

Quote:

Originally Posted by Brazen

Article about car affordability. Probably cheaper in reality as you can get a Falcon well below retail price.

http://carsales.mobi/editorial/details/ED-ITM-100796

Link goes to Carsales front page ?

F6RCD · 07-01-2016, 05:59 PM

What is the average wage?

nstg8a · 07-01-2016, 06:15 PM

Average wage is about 75k

**Fordman1** · 07-01-2016, 06:17 PM

Quote:

Originally Posted by 98TLS

So...give up living for 24 weeks and we can all buy a new Falcon.

Or buy 20 BA's

**98TLS** · 07-01-2016, 06:25 PM

Quote:

Originally Posted by F6RCD

What is the average wage?

Generally a ******** more than the average bloke earns.

carwant.com.au · 07-01-2016, 06:41 PM

Whilst it recognises the affordability of a new car, it also shows how competitive the car market is.

'Real' car sell prices haven't changed much over the past 10 years, which generally means margins are much tighter. Compounding to this is wages, rent, electricity, etc (for the car dealer) have all increased; which makes it a very tough (and unsustainable) market.

I guess it's no different to other 'products' out there; flights, televisions, white-goods and the list goes on.

This isn't a bad thing, as average people can now afford things they could never before, it's just a reflection of the times we live in today.

F6RCD · 07-01-2016, 06:43 PM

Is that 75k before or after tax?

carwant.com.au · 07-01-2016, 06:45 PM

It's likely to be before tax

**98TLS** · 07-01-2016, 06:53 PM

Quote:

Originally Posted by carwant.com.au

Whilst it recognises the affordability of a new car, it also shows how competitive the car market is.

'Real' car sell prices haven't changed much over the past 10 years, which generally means margins are much tighter. Compounding to this is wages, rent, electricity, etc (for the car dealer) have all increased; which makes it a very tough (and unsustainable) market.

I guess it's no different to other 'products' out there; flights, televisions, white-goods and the list goes on.

This isn't a bad thing, as average people can now afford things they could never before, it's just a reflection of the times we live in today.

Interesting,been out of the game many years but spent 5 years (or so) selling Toyotas and 3 (or so) selling Fords back in the day,both were franchised dealerships so had second hand yard/parts/service departments which kept the places afloat.No idea if things are the same these days but back then at the end of a sales 1/4 (everything was done in 1/4s) you would if need be sell a new car at a loss in order to get a "unit" out the door,things even back then were tough though if done the franchise would get what was called a rebate from the factory.

**MercurySilver** · 07-01-2016, 06:53 PM

So basically you save every cent each week for 24 weeks
You'll have to not eat and use your hand to wipe, but all good

**98TLS** · 07-01-2016, 06:54 PM

Quote:

Originally Posted by MercurySilver

So basically you save every cent each week for 24 weeks
You'll have to not eat and use your hand to wipe, but all good

And no speeding tickets.

then again nobody on a forum such as this would even think of speeding.

mcflux · 07-01-2016, 07:06 PM

Quote:

Originally Posted by 98TLS

Generally a ******** more than the average bloke earns.

Probably the mean wage - skewed up due to ridiculous CEO/finance/politician earnings.

Median wage would likely be lower.

Itsme · 07-01-2016, 07:09 PM

Irrelevant article as very few cashed up people buy new cars outright, majority is leased, loans or what ever.

**98TLS** · 07-01-2016, 07:20 PM

Quote:

Originally Posted by trublu

Irrelevant article as very few cashed up people buy new cars outright, majority is leased, loans or what ever.

then factor in cars bought for business purposes with the advantage of tax write off etc here in NZ anyway.

Franco Cozzo · 07-01-2016, 07:21 PM

Average wage $75K?

Most of the dudes I know are hovering between $38-$50K

turbo4 · 07-01-2016, 07:23 PM

I wish I earned an average wage.

superyob · 07-01-2016, 07:30 PM

Quote:

Originally Posted by turbo4

I wish I earned an average wage.

Shhhh. Thread is about buying a Falcon. Be vewy quiet now...

**98TLS** · 07-01-2016, 07:30 PM

Quote:

Originally Posted by Big Damo

Average wage $75K?

Most of the dudes I know are hovering between $38-$50K

About the same possibly a little higher across the ditch here in NZ,to the bloke that said 20 BAs well ive had 4 BA XRs including my GTP for less than the 75.Medias claim of $75k seems similar to what our lot claim over here...ridiculous though good luck and well done to those that get it.

arronm · 07-01-2016, 07:36 PM

Why would I use my own money to buy a new car

superyob · 07-01-2016, 07:53 PM

Quote:

Originally Posted by arronm

Why would I use my own money to buy a new car

Why wouldn't you? How else would you do it?

arronm · 07-01-2016, 07:56 PM

Use the banks money. All interest is tax deductible. I like when the government pays for my car , mods, tyres, etc

**Fordman1** · 07-01-2016, 08:07 PM

Quote:

Originally Posted by MercurySilver

So basically you save every cent each week for 24 weeks
You'll have to not eat and use your hand to wipe, but all good

Or you could time travel, winge, and do the same in 50 or more weeks !

Whitey-AMG · 07-01-2016, 08:08 PM

Quote:

Originally Posted by F6RCD

What is the average wage?

Its 1545.60 before tax.
http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0/

In reality its probably more if you consider how much tax evasion goes on.....lol.

Either way its a moot point for falcon. May not even be any production in 24 weeks time.