A sharp decrease in sales at the beginning of the last quarter of 2005 marred the otherwise successful year, with dampened consumer spending blamed on the extensive media coverage of rising petrol prices. Sales picked up again in November and December with a strong end of year result fuelled by a pre-Christmas rush to purchase vehicles before the summer holidays.

Total car sales for the year showed a 3.5 per cent improvement on the 2004 results with a total of 988,269. The top sellers overall in 2005 were Toyota, Holden and Ford, holding 20.5, 17.7 and 13.1 per cent of the market respectively.

The passenger vehicles market declined slightly in 2005 but still made up the bulk of retail sales with 60.5 per cent, followed by Sports Utility Vehicles with 48 per cent. Holden Commodore remained Australia’s favourite car and dominated the large car market with 66,974 vehicles sold. However, increasing fuel costs have resulted in the large car market loosing share to the rapidly growing small car segment. Within this segment the Toyota Corolla was clearly the market leader, with 46,415 sales – An all-time record.

According to the CEO of the Federal Chamber of Automotive Industries – Peter Sturrock strong competitive pricing and a resilient economy indicate a buoyant year ahead in 2006. Mr. Sturrock commented that “cars have never been so affordable” given the fact that the amount of time taken for an Australian on an average income to purchase a Ford Falcon has fallen to 38 weeks, down from 44 weeks in 1995.

With such a positive outlook for 2006 sales, the automotive industry is gearing itself up for another record year in 2006, with predictions for the sale of over 980,000 vehicles again. In addition, stiff competition amongst financing companies is continuing to maintain a healthy flow of flexible and convenient solutions for consumers to choose from.