NEW car sales should remain high in 2014 due to the strong Australian dollar and healthy competition between manufacturers.
New car sales dropped by 0.3 per cent in March, seasonally adjusted, with 92,168 cars sold across the country, the Australian Bureau of Statistics said on Thursday.
Over the year to March, sales were down 2.8 per cent.
Despite the recent fall, new car sales remained healthy, driven by strong sales of sports utility vehicles which were up almost five per cent, CommSec economic Savanth Sebastian said.
"Via a combination of a strong Australian dollar, rising wages and price competition between car manufacturers, car affordability stands at the best levels in 38 years," Mr Sebastian said.
"With cheap car finance readily available and the job market still in decent shape, Aussie consumers haven't been reluctant to update their rides.
"Car sales should remain historically high over 2014."
But it will take stronger conditions in the job market to push the market even higher.
"While car affordability is the best since the mid 1970s, people need certainty on job prospects before committing to major purchases," he said.
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