- the source for market opinions


October 7, 2018 | Australia Auto Crash on Top of Housing Crash

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
New car sales in Australia are down for the sixth consecutive month. The real numbers are worse.

Here’s the punchline: Dealers report the downturn is sharper than what the reported sales figures show.

Official figures show new-car sales hit the brakes for the sixth month in a row in September.

The slowdown means dealers are overstocked as they head into the quietest months on the calendar and trying to clear end-of-year models.

September’s downturn of 5.5 per cent over the same month last year — to 94,711 reported sales — doesn’t tell the full story. Dealers claim the figures are inflated and the real position is much worse.

One major metropolitan dealer says “there was a mad scramble” in the last days of the month to report cars as sold. Industry insiders say anywhere from 10 to 20 per cent of vehicles in a given month are “cyber cars”, a term given to vehicles counted as sold on a computer but not in the real world.

Congratulations to Australia

It appears they can lie at least as good down under as we do in the US.

Mike “Mish” Shedlock

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

October 7th, 2018

Posted In: Mish Talk

Post a Comment:

Your email address will not be published.

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.