Car Industry Revving Up

More and more Australians appear to be buying and upgrading cars.

According to the latest data from the Australian Bureau of Statistics, purchase of new cars has risen by some four percent in June of this year to 97,687.

The bureau added that car sales in the last 12 months have also increased by 7.1 percent. According to Craig James, chief economist of CommSec, the healthy car industry is because of the strong Australian dollar and car companies offering competitive prices.

James added that it appears that the housing market and the car sales industry are the only ones in great shape. He added that car sales in June 2013 and the last 12 months have hit record highs.

James also said that ordinary private buyers are attracted in buying or upgrading cars because of their affordability. The demand also appears to come from mining companies and those that come from construction companies.

James, however, said things would slow down soon, which means car prices would experience the same.