Don’t buy a car NOW: why Aussies have to wait MONTHS for new vehicles to arrive – as used car prices RISE
- Aussies wait months for vehicles due to shortages and conflict in Ukraine
- 94,383 vehicles sold last month, 6.4 percent less than the same month last year
- Toyota was the top selling company last month with 22,813 ahead of Kia at 7307
Australians are being forced to wait up to nine months for delivery of their new cars due to global parts shortages and the conflict in Ukraine.
Sales fell more than six percent in May as the industry continued to grapple with the impact of the COVID-19 pandemic and a shortage of microprocessors, which has impacted the availability of new vehicles around the world.
The Federal Chamber of Automotive Industries said 94,383 vehicles were sold across Australia last month, 6.4 percent less than the same month last year.
Australians are forced to wait up to nine months for delivery of their new cars (pictured, Hyundai vehicles) due to global parts shortages and the conflict in Ukraine
Tony Weber, Chief Executive of the Federal Chamber of Automotive Industries, said ‘pandemic interruptions continue to affect production and conflicts in Ukraine (pictured) have disrupted the supply of vehicle components’
“The global auto industry continues to be plagued by a shortage of microprocessor units and shipping delays,” said Tony Weber, Chief Executive of FCAI.
“This problem is not unique to Australia. Automakers continue to report high demand in dealer showrooms and online marketplaces.”
“Pandemic interruptions continue to affect production and conflicts in Ukraine have disrupted the supply of vehicle components.”
The drop in sales in May caused the market to fall 4.1 percent in the first five months of 2022 to 437,884 (photo, Kia car)
“Monthly sales figures also depend on ship arrivals, which are still uncertain.”
“We don’t expect supply chains to stabilize until these issues are resolved.”
The drop in sales in May caused the market to fall 4.1 percent to 437,884 for the first five months of 2022.
Toyota was the top selling company last month with 22,813 ahead of Kia at 7307, Hyundai at 7063 and Mazda at 6474.
The Toyota Hi-Lux (pictured) was the best-selling vehicle with 5178 in store ahead of the company’s RAV4 at 3925 and the Ford Ranger at 3751
The Toyota Hi-Lux was the best-selling vehicle at retail with 5178 ahead of the company’s RAV4 at 3925 and the Ford Ranger at 3751.
Electric car demand remained strong with 925 cars sold for the month, bringing sales to 8,543 at the end of May, more than four times the level recorded at the same time in 2021.
However, sales of Tesla’s Model 3 fell sharply from 52 in April to 12 last month.
The shortage of new vehicles has caused used vehicle prices to skyrocket as impatient buyers look for a way to get a car immediately.
The four-year-old Toyota LandCruisers are now listed on Carsales with six-figure price tags.
Chris Emerson, a data specialist at NRMA’s parent company IAG, said buyers shouldn’t pay too much, even with the increased competition to secure cars.
“Your budget should include the maximum initial price you are willing to pay, as well as ongoing cost of ownership,” he told the Daily Mail Australia.
Datium Insights, head of product Tanim Ahmed, said buyers, frustrated by strong demand for three-year-old LandCruisers, were switching to a four-year-old version.
“There are now more sales for older Landcruisers than for younger ones, which is probably due to the stock shortages we have,” he told Daily Mail Australia.
‘Actually, they are depreciated much less over time than they used to be.’
Average used car prices in Australia have risen 37 percent since the onset of Covid, data from Moody’s Analytics and Datium Insights shows.
Emerson said this makes it even more important for car buyers to shop around.
“Car prices and willingness to negotiate can vary by dealer, so don’t be afraid to check and visit a few dealers before making your purchase,” he said.
CommSec chief economist Craig James said the travel ban on holidays abroad was causing wealthy Australians to put their money in cars.
“Aussie consumers continue to treat themselves,” he said.