New-car sales are motoring ahead in Canberra — the latest in a swathe of indicators showing the capital's economic strength.
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Credit-reference agency Veda yesterday released data showing a spike in ACT car-loan applications of 17.6 per cent for the December quarter, also the highest in the country.
Across Australia, applications for auto loans eased to a growth rate of 4.5 per cent during the same period.
ABS figures for December 2016 reveal 1682 new cars were sold in Canberra, nearly 17 per cent higher than December 2015.
Canberra Toyota dealer principal Mirko Milic said this reflected Canberra's economic stability and general confidence.
"It's a combination of confidence, economic growth and political stability; it all works together," he said.
"We had a couple of crazy months with the federal election and ACT election around July and things slowed down a bit.
"Since then it's been relatively stable and confidence is back. Sales picked up again towards the end of the year."
ACT and NSW led the way for new-car sales in December, while the market in Western Australia shrank 9.5 per cent.
In 2016 Toyota was again Australia's biggest selling car brand, leading the market with 17.8 per cent of sales followed by Mazda 10, Hyundai 8.6, Holden 8 and Ford 6.9.
Mr Milic said dealers and manufacturers had competed strongly in December to finish the year on a high note.
"In particular with Toyota, they wanted to retain their number-one status so they were pretty aggressive with the likes of Hilux versus Ranger," he said.
"Hilux was the number-one car in Australia, the first time that a commercial vehicle has won that."
Mr Milic said Hilux and Corolla were the biggest sellers for Toyota.
He predicted a continuation of current trends in 2017.
"I think there will be some growth, but not as much as last year; a bit more modest," he said.
"The way things are going, the economy is motoring along, especially while interest rates are low.
"The trend is definitely continuing towards SUVs and light-commercial vehicles, there's no doubt about that.
"Vehicles like the Hilux no longer just appeal to tradies and commercial-type users; it's more across the board now, they're becoming more family oriented."
As for driver-less cars, don't expect to see any in local showrooms any time soon.
"The technology is still too dangerous," Mr Milic said.
"Toyota are saying it's miles away. They're a conservative company by nature and if there's any risk at all they won't enter into it from a production point of view.
"I won't see it in my career, I think it's quite a few years away."
