Surprise trend as luxury cars weather storm

AUSTRALIAN globetrotters grounded by COVID-19 restrictions are spending their spare cash on luxury vehicles.

While the rest of the car industry is battling with a 20 per cent decline in sales this year, prestige brands are weathering the storm better as people treat themselves to a new set of wheels rather than a cruise or overseas holiday.

Audi sales in July were up by more than 50 per cent, while Alfa Romeo sales jumped 70 per cent and Volvo was up 25 per cent.

This hasn’t carried through to mainstream brands, although Toyota’s hybrid range has kept it afloat. The RAV4 was the country’s No 1- selling car in July.

Matthew Dickson, sales manager at Sydney’s Classic Throttle Shop dealership, said wealthy customers with high disposable incomes were buying “things that you can really sink your teeth into and drive and enjoy. People are not able to travel for the next 12 or even 18 months, so (the) funds they would have spent anyway is being spent on lifestyle items,” Mr Dickson said.

“People are investing in lifestyle items and enjoying the time that they’ve got. I think that’s definitely factored into people making faster decisions than they would have made.”

Other showrooms echoed the “you only live once” sentiment of buyers in recent weeks. Sales staff for an exotic European brand said a customer bought a $500,000 supercar this week after cancelling more than $250,000 worth of luxury overseas travel.