If you’re in the market for a new car, now is your chance to get a bargain.  This is drive-away heaven  – with everything from used to brand new Toyotas and Beamers on the block with slashed prices.

If you feeling like a set of swanky wheels, you can now save up to $10,000 when you buy a BMW X5 for $119,900 drive-away, down from $130,000 after on-road costs are added.

Big Family? The seven-seat Toyota Kluger now costs $41,990 drive-away – a huge $8530 discount off the normal price. While a Mitsubishi Pajero Sport GLX automatic 4WD is reduced to $45,990 drive-away, saving you $7096 according to carsguide.com.au.

There are also more deals to be had at the cheaper end of the market, with a Ford Focus small hatch car now selling at $27,690 drive-away; Hyundai smallest SUV, Venue Go is selling at $22,490 drive-away and small car favourite, Swift is on sale from $17,690 according to whichcar.com.au.

“There’s definitely a deal to be done,” said James Voortman, chief executive of Australian Automotive Dealer Association. “We’ve had the biggest reduction in demand for cars and dealers are looking to move stock before the end of the financial year on 30 June.”

Used car prices are estimated to fall by more than 15 per cent according to investment bank JP Morgan as increased supplies flood the market. This has created more headaches for dealers who are already under intense pressure to meet sales targets and get rid of stock.

JP Morgan said that the price drop has also been fuelled by the flood of used vehicles for sale from rental-car fleets with thousands of fleet cars sitting idle as Australians stay home.

Car dealers are also flooding the market with “demo” vehicles.

World’s best savings tips for cutting back on your car bills

Since the beginning of March, the number of cars listed on Australia’s No 1 auto classified website, Carsales, has surged 15 per cent to 225,000. Demo cars made the bulk of the increase, almost doubling to more than 30,000.

The onslaught of COVID-19 has rattled the car sales industry with April sales plunging to 38,926 vehicles, down from 75,550 in April 2019 – a drop of 48.5 per cent.

This is the lowest national monthly new car sales figure since 1994.

“The extent of this plunge in sales is pretty unprecedented in modern times and it’s going to have significant repercussions for many dealers,” added Mr Voortman.

“People are feeling economically anxious and saving their money rather than replacing their cars in the immediate future.

“Also a lot of banks and finance companies are not lending as much especially to those who are a credit risk.

“Recently, a pilot wanted to buy a 4WD and applied for a car loan and was turned down. He ended buying the car with cash,” Mr Voortman said.

However, Carsales has predicted that car ownership is set to rise post COVID-19 as more Australians are concerned about hygiene and close contact with strangers when travelling on public transport.

Surveying 3000 people, Carsales found that almost 60 per cent of non-car owners are more likely to consider buying a car and 38 per cent are “definitely” likely to consider buying a car “right now.”

Another 37 per cent said they are less likely to use public transport and 18 per cent are less likely to use rideshare.

The same sentiment has also been experienced in the UK and Canada.

“We are seeing an increase in consumer sentiment and an uptick among Australians who want to buy a car now or in the immediate future,” said Deborah Heaphy, head of Carsales Consumer Experience.

Pin It on Pinterest