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 Stimulus package drives car sales 

Stimulus package drives car sales

23 Jun, 2009 09:48 AM
AN INCREASE by 5.4 per cent of new motor vehicle sales over the last month, recorded by the Australian Bureau of Statistics is being reflected in Tamworth, according to new car dealers.

JT Fossey’s John Keating said his staff had been “flat out” .

“We have been busier in new cars than in years during the last couple of months,” Mr Keating said.

He attributed the booming demand to the Commonwealth Government’s economic stimulus package which offered a 50 per cent tax rebate on new vehicles bought by businesses before the end of the financial year.

Mr Keating said the bulk of sales had been for business vehicles and across a wide range of vehicles from commercial to passenger styles.

He said the level of demand had taken manufacturers by surprise to some degree and a number of model types were difficult to access due to the demand.

Decisions taken by manufacturers to cut back on the construction of some ranges of vehicle had resulted in an expected 12-month supply to be almost diminished.

“They’re almost gone, there’s nothing new coming through,” he said.

“The enquiry rate has been through the roof.”

Tamworth City Toyota’s sales manager Neil Driver also said his staff had been pushed hard by enquiries.

“June is always big for us, but the (Federal Government) stimulus has definitely made a big difference,” Mr Driver said.

He said demand had been “very evenly spread” across cars and commercial vehicles.

“I’ll be honest we were expecting a down turn earlier in the year, (but) the stimulus has definitely worked.”

Such has been the demand that supplies of new vehicles are becoming harder to source.

“Supplies are difficult, we’re selling into the next two months of stock,” Mr Driver said.

“It’s keeping our salesmen and mechanics busy and that’s a good thing.”

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Demand stimulated: JT Fossey’s John Keating said the Commonwealth’s tax rebate had driven sales of cars and commercial vehicles. Photo: Gareth Gardner 220609GGO01
Demand stimulated: JT Fossey’s John Keating said the Commonwealth’s tax rebate had driven sales of cars and commercial vehicles. Photo: Gareth Gardner 220609GGO01

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