The latest figures for motorbike sales in Australia have been released and the disappointing downturn may be, at least in part, a result of rising interest rates. Well, that’s the viewpoint of one expert and one that sparked our interest. Interest rate rises don’t have to be the end of motorbike purchase plans as Jade Bike Loans offers better interest rates and cheaper loans for new bikes.
We report on the latest motorcycle sales figures including commentary around the larger market picture and how buyers can still achieve affordable finance amid the current interest rate rises.
Latest Motorbike Sales Figures
The Federal Chamber of Automotive Industries (FCAI) released the motorbike and OHV sales data for the period January through September 2022 on 10th October. The figures are provided per category of vehicle but not broken down by makes and models. So not necessarily a resource for buyers to use as a guide to popular selling motorbikes. Also worth noting that several makers – CFMOTO, Royal Enfield and MV August, don’t reveal their figures so they are not included in the totals.
The figures for the period compared with the same time in 2021 show a fall of 18.4% in total sales. Off-road models were the biggest sellers, claiming nearly 42% of sales. But still fell 17.6% compared with 2021. Road bike accounted for just over 37% of sales and a small 0.5% increase on 2021 data.
OHV sales fell significantly, 48.3% compared with the 2021 period. The reason for the fall is being given as the Government mandate regarding the fitting of OPDs which has resulted in a number of manufacturers exiting the Australian market. Sales of scooters was up on the 2021 period but only accounts for just shy of 6% of the total sales.
FCAI’s Tony Weber described the fall in total sales as disappointing. Motorbike sales had recorded somewhat of a boom period during the pandemic times.
An interesting explanation of the current sales trend was reported in Infomoto. The article relates an interview with another FCAI representative who sees instability in the economy as a reason for the downturn in the sale of enduros, motocross and dirt bikes for kids.
Sales of these models saw a spike during the pandemic as many turned to 2 wheels as a preferred form of commuter. We note that this time also coincided with historic low interest rates. The FCAI rep explains that some of these bikes are seem as toys and as such can be impacted by tighter economic times. He reads into the situation as the interest rate rises causing tighter economic times and toys being one of the first purchases that gets bypassed.
Interest Rates Impact on Sales
This is an insightful explainer as the period of 2021 from January through to September was a period of historic low rates. The RBA cut the cash rate several times in 2020 and held the rate at 0.1% through 2021. Very accommodative times for riders looking to upgrade to a new motorcycle.
It was also during this time that RBA Governor Lowe was indicating that a rate rise would not be expected until possibly 2024. By January 2022, the start of the current bike sales figures period, inflation was soaring and while the cash rate was held at 0.1%, talk in finance circles was very much on the need for a rate rise.
By May 2022, in the middle of this sales figure period, the first rate rise had been announced and followed by consecutive rises. The effect of a cash rate increase is for banks and finance companies to follow with their own rate rises.
So it is quite a feasible and realistic assumption that motorbike sales and the sales of many other goods would be impacted by higher interest rates. But it should be noted that the period of historic low rates was not normal conditions.
Securing Cheaper Motorbike Finance
While it appears that some sectors of the motorbike market and some buyers may have had buying intentions quashed as a result of recent rate rises, affordable motorbike finance may still be achievable. Jade Bike Loans continues to offer cheaper rates than can be achieved with many other lenders with our Secured Motorcycle Loan.
The cheaper the interest rate, the lower the monthly repayments and for most buyers, the greater the affordability. To reduce those monthly loan payments to a more affordable level, buyers can look to:-
- Using our broker-style lender services to source the cheapest interest rate.
- Reducing the total loan amount by making a down payment.
- Maintaining a good credit score to ensure the cheapest rate is offered.
- Requesting their Jade consultant negotiate a longer loan term to reduce the monthly commitment.
- Make the purchase with finance prior to any further cash rate rises.
For cheaper motorbike finance contact Jade Bike Loans at 1300 000 003
DISCLAIMER: IN REGARD TO ANY ERRORS OR MISREPRESENTATIONS IN THIS MATERIAL, NO LIABILITY IS ACCEPTED. THE DETAILS, CONTENT AND DATA ARE PRESENTED PURELY FOR GENERAL INFORMATIONAL PURPOSES FOR MOTORBIKE BUYERS AND THOSE SEEKING MOTORCYCLE LOANS. THIS IS NOT INTENDED AS THE SOLE SOURCE OF INFORMATION FOR FINANCIAL DECISIONS. IF SPECIFIC ADVICE IS REQUIRED AROUND FINANCIAL DECISIONS, READERS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
