It seems no matter where we turn COVID, the sneaky virus we all love to hate, has had some kind of effect on every industry here in Australia, and the new car industry has been no exception.
We are an impatient bunch, so when we decide it’s time to drive away with a set of shiny new wheels, it might sound petulant, but we expect the turnaround time to be as quick as possible. We’re true representations of the internet era, we get what we want and we want it now *stamps foot.
So before you head down the yellow brick road of purchasing a brand new car, it’s always a good idea to make sure that you’re informed on what's happening in the current market- this will help ease your mind and get your perspective straight, and hopefully stop the temper tantrums and huffing fits when you might not get exactly what you want.
We can’t help much with the constant refreshing of your email or staring at the phone like a long lost lover waiting for the dealership to call. But at least we can educate you on what to expect when purchasing a new car in a world that has been affected by COVID and how engaging with a new car buying service can streamline the whole process to make your life a lot easier.
COVID AND THE CAR INDUSTRY: A TUMULTUOUS JOURNEY
Let’s start at the very beginning (we heard it’s a very good place to start.) We all understand what went down in March 2020, we don’t need to relive it again thank you very much, but because the whole world basically stopped, so did new car production. And since we weren’t all jumping in our cars to commute to work or literally go… anywhere, this knock on effect left dealerships in a bit of a pickle, and rightly so – they stopped stocking up on the Kia Sorento's and Toyota RAV4's we all love.
After the initial COVID shock and scare began to subside, we started to realise that we weren’t going anywhere anytime soon, and we definitely weren’t going to catch public transport i.e “germ incubators”. We had a good pile of money saved, we had the stimulus and unfortunately the annual boys trip to Bali was off the table..so why not buy a new car to go road tripping around our backyard instead?
Australians started to demand new cars and, according to the Federal Chamber of Automotive Industries, purchased 83,312 new cars in September 2021 which is an increase of around 21 per cent on the same period last year.
With this high demand, and low stock – people were unable to get their paws on the latest makes and models. Even now, some production houses are still at a standstill.
So where to from here?
WHAT YOU CAN EXPECT WHEN BUYING A NEW CAR IN 2022
- Low Production
Well, since Australia has no remaining car production factories (bye bye Holden), we rely heavily on other markets such as Asia, US and Europe to pick back up as quickly as possible. The only issue with this is, they have their own country demands to think about – meaning that we’re not exactly at the top of the list when it comes to priorities. Not to mention the exchange rate adding even extra pressure.The current stock at the dealership is dwindling, and with little to no new stock coming in, you can expect a high demand with little inventory. "This is a global problem," said James Voortman, chief executive of the Australian Automotive Dealers Association (AADA). "It's affecting almost every brand in every market in the world."
- Delivery Times
Delivery time frames to drive away with your new car can actually vary quite dramatically from dealer to dealer with reports stating that the wait could be up to 12 months – and this could look to increase. We know that the world is unpredictable, so this shouldn’t come too much as a shock. - Increased Pricing
You only have to look at the current state of our housing market to understand that high-demand and low inventory equals higher prices. So when purchasing a new car in this current climate, expect to be paying a premium.So if all this nonsense has gotten you thinking – should I hold off on purchasing a new car? Good news (for once) it’s not all doom and gloom. There are actually benefits, good ones, to purchasing a new car in this market – if you know what you’re looking out for and understand how to play the game…like a car broker or new car buying service does for instance…and we just happen to know a really good one.
WHY A ENGAGING WITH A NEW CAR BUYING SERVICE CAN HELP
New car buying services and car brokers are experts in their trade, have excellent and chummy connections with the dealership and they can really help when purchasing your brand new car. It’s almost like skipping the queue – fancy pants.
Here's how:
- Their dealership connections allow them help find you a quicker delivery time frame where possible
- A car broker can help find the make and model you’re looking for, so you don’t have to compromise on the car you REALLY want
- A good car broker will offer trade-ins, so you’ll be able to get a decent price on your old ride. Older vehicles are worth way more in this current climate. You only have to look up the price of a 2010 Toyota Landcruiser to see this in action.
- Haggling with dealerships can be harder. They have a limited supply and a lot of customers. They have it in the bag – so they will likely try and play hardball with you
- Lack of communication from dealerships can be frustrating when delays occur. A new car buying service can be the middleman and communicate on your behalf to take the stress out of the situation and make your life a hell of a lot easier.
- A new car buying service can also help finance your new car – Our advice? Get in when the interest rates are still low before they begin to spike
WHAT'S NEXT?
If you’re seriously considering purchasing a new car, we suggest that you get the ball rolling straight away. Not only will you then have a better chance of getting your hot little hands on the new make and model you actually want, but delaying it further can mean that you might have to wait even longer than you first expected.
At The Car Concierge, we have all the information needed in this current climate to still navigate the waters for you, working with our trusted dealerships and securing you THE best price on the car that you’re after.
Contact us today to find out just how easy it is – you won’t regret it.
