Super fuels car sales Early withdrawals keep wheels turning

CAIRNS used-car yards are reaping the rewards of super withdrawals as government stimulus payments provide a welcome boon to the economy.

Cairns Car Brokers owner Ryan Siegmann said his business had seen an upturn as cash flowed into bank accounts.

“There has been no doubt that access to super has reflected itself in the used-car market,” Mr Siegmann said.

“From our end, we have seen there has been more cash around than before.

“It has certainly improved things for us from where we were and we are selling units as a result.”

The demand has brought on a new challenge: accessing stock.

“It is a twofold problem: in a used-car yard, accessing stock from the street is a large part of our formula and in the external market they are selling the cars themselves.”

Cairns dealer Pacific Toyota appears to be one of the quickest to emerge from the pandemic-induced downturn.

The group recorded a 50 per cent increase in June new car sales, which dealer principal Leon Richardson said was a new record for the Mulgrave Rd dealership.

Mortgage brokers have found that many clients withdrew money from super, hoping to use it to apply for a home loan.

“Probably 80 per cent of clients ask about withdrawing super,” Lindon Reed from Mortgage Choice said.

“The banks are not going to let you use it for deposits.”

He said it was concerning to see people use that money for items it was not intended for.

“I tell people don’t use it if you can,” Mr Reed said.

“It is there for hardships, not for a state-of-the-art plasma TV.”

A monthly survey by NAB

Group Economics shows business conditions and confidence are improving but remain deeply negative.

NAB’s business conditions rose 17 points to negative seven index points, rebounding from the historical lows experienced at the beginning of the pandemic.

The bank noted improved operating conditions in retail and mining sectors had led to the improvement in business sentiment.