CommSec's luxury car sales index has now risen for eight straight months, even as new car sales have plummeted for nearly two years.

In February 2020, CommSec found luxury vehicle sales rose 0.4% to 88,855, while the Federal Chamber of Automotive Industries last week reported overall new car sales fell 8.2% based on the same time last year.

CommSec's report also analysed data from the NRMA and Glass's Guide to determine what models of cars took the least amount of a hit in depreciation over the past three years.

The cars that held their value the best over three years were:

  • Fiat 500 Lounge - 91.9% of value held
  • Toyota LandCruiser - 90.7%
  • Volvo XC90 - 86.5%
  • Jaguar E-pace - 84.6%
  • Porsche Cayenne - 84.1%
  • Haval H9 - 83.6%
  • Tesla Model S - 82.5%
  • Porsche Macan - 82.4%
  • Honda Odyssey - 82.1%
  • Tesla Model X - 80.9%

This generally correlates with Savings.com.au research, which looked at popular models of cars and found the Landcruiser, which is popular with enthusiasts, holds its value better than many others.

Looking for a loan for a new car? Below are fixed loans for new cars with some of the lowest interest rates in the market

Update resultsUpdate
LenderCar LoanInterest Rate Comparison Rate* Monthly Repayment Interest Type Vehicle Type Maximum Vehicle Age Ongoing Fee Upfront Fee Total Repayment Early Repayment Instant Approval Online Application TagsFeaturesLinkCompare
7.19% p.a.
8.31% p.a.
$597
Fixed
New
1 year
$8
$400
$35,804
Approval within 24 hoursEarly payout available
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
6.69% p.a.
7.81% p.a.
$590
Fixed
New
1 year
$8
$400
$35,379
Approval within 24 hours
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  • Get a discounted rate if you buy electric
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
6.57% p.a.
7.19% p.a.
$588
Fixed
New
No Max
$0
$250
$35,278
Loan amounts from $2k to $75k
  • Available for any new motorised vehicle
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
  • Get quick decision. Funds in 24 hrs if approved
6.34% p.a.
8.36% p.a.
$585
Variable
New
1 year
$8
$400
$35,084
7.29% p.a.
8.41% p.a.
$598
Fixed
New
1 year
$8
$400
$35,889
6.69% p.a.
6.96% p.a.
$590
Fixed
New, Used
No Max
$0
$195
$35,379
7.19% p.a.
7.82% p.a.
$597
Fixed
New, Used
7 years
$0
$249
$35,804
No ongoing fees
8.27% p.a.
8.27% p.a.
$612
Fixed
New, Used
No Max
$0
$595
$36,731
7.95% p.a.
8.16% p.a.
$608
Fixed
New
5 years
$0
$150
$36,454
8.99% p.a.
9.33% p.a.
$623
Fixed
New, Used
7 years
$5
$0
$37,356
9.24% p.a.
9.86% p.a.
$626
Variable
New, Used
10 years
$5
$195
$37,575
9.49% p.a.
10.82% p.a.
$630
Fixed
New, Used
No Max
$9
$474
$37,795
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Why are luxury car sales up?

While luxury car sales are down on December 2016's volume of 106,658 units, they have risen every month since July 2019.

CommSec has attributed this to the 'wealth effect', which states that as home prices increase, people feel more inclined to upgrade their vehicle.

"When home prices were rising strongly from 2013-2017, sales of new vehicles were similarly rising," CommSec's report said.

"Australian home prices started easing in November 2017.

"Annual new vehicle sales peaked in March 2018 and have been falling in the period since."

The CommSec index found it takes a worker on average earnings less than 40 weeks to buy a new BMW 320i, compared to 44 weeks a decade ago. 

However, this result is down on the best levels of just over 35 weeks seen in the September quarter of 2017.

Similarly, it takes a worker just under 15 weeks to buy a Toyota Corolla, down from 19 weeks a decade ago.

CommSec's report said despite recent sluggish wage growth, wages and wealth had been 'rising solidly', with average weekly earnings rising by 35% in the past decade, versus a 23% increase in consumer prices.

"Wage earners had been looking to upgrade their rides over time, pushing more sales into the luxury vehicle category," the report said.

According to the Reserve Bank (RBA), a number of factors contribute to the purchasing decision, with one being the wealth effect.

One of the RBA's studies "identifies a positive and stable relationship between household wealth and consumption, largely reflecting changes in spending on motor vehicles, durable goods and other discretionary spending".

Other factors such as interest rates, the Australian dollar, vehicle pricing, warranty periods and availability of finance also affect purchase decisions.

CommSec also reported loans to buy cars in December were up 6% on a year ago, representing the fastest gain in almost three years.

In one month alone from January to February, home prices rose more than $4,000 on average, marking a 6.1% rise year-on-year.

Market wide, however, January 2020's car sales results marked the worst January result since 2009.