There’s no surprise that 2020 has had it challenges for a variety of industries, between lockdown restrictions and limited supplies of certain products there is has been a notable change in the face of the Australian marketplace.
The new & used vehicle market is no different, with an increased demand for new vehicles and a shortage of new vehicles coming across our borders, businesses and individuals have found it increasingly difficult to purchase the vehicles that they want.
As one of Australia’s lending independent finance brokers for Vehicles and Business Equipment, we have put together this helpful guide to make sure you don’t miss out obtaining the vehicles and equipment that will help grow your business.
With COVID-19 restrictions loosening and the ability to travel across state easier, Australian new-car sales surged in the last two months of 2020. As a result the automotive industry is now grappling with stock shortages as a large proportion of buyers treated themselves to a new vehicle so they can explore their own backyard amid international travel restrictions.
“Forced to scrap international holidays, many Australians who would normally be travelling (overseas) are instead ready to explore their own backyard,” said Mr Callachor. “And many of them are buying new vehicles to ensure their family road trips are as comfortable and as safe as possible.”
Official figures released by the Federal Chamber of Automotive Industries shows 95,652 new motor vehicles were reported as sold for the month of December 2020, an increase of 13.5 per cent compared to the same month the prior year.
December 2020 delivered the second month in a row of growth (November 2020 was up by 12.4 per cent) after 31 months of decline, the longest market slump since the Global Financial Crisis of a decade ago.
What’s not furthermore surprising is that Industry experts say the December 2020 figure could have been higher had many showrooms not run out of popular models such as utes, SUVs and four-wheel-drives, with some well-known European brands reporting an 18month turn around on popular models.
What does this mean for You & Your New Vehicle?
If you’re in the market for a new vehicle for you or your business, now is the time to act! With the supply of vehicles getting lower and more people in the market for vehicles, it could be a long time before you can simply drive a new vehicle off the lot. With popular brands reporting extended waiting times and used dealerships reporting less stock with sales still set to continue on a steady path there are a few simple truths:
- Law of Supply & Demand: As the number of vehicles available goes down, dealerships will be in a better place to negotiate and therefore charge more for vehicles that they have available.
- Delay on Imports: The shortage of vehicles is a global issue, withincreased waiting times from 6-18 months for a new vehicle. Meaning if you don’t act now you could be waiting up to close to 2 years to upgrade your fleet.
- Limit Choices: You may be faced with limited choices for your vehicles with more shopping around and research before you can find a vehicle. Meaning more time spent driving around doing test drives. You may also miss out on opportunities in other states because of border closures.
How can Finmax help?
Finding vehicles at the best price are our forte, we’ve been working with dealerships across Australia for 20 years now and have developed exceptional relationships with all the big players. As a result, we can negotiate better pricing and in a lot of occasions can secure wholesale pricing on new vehicles.
This also means we have a larger variety to choose from and can reach out to our network to reserve vehicles, so that when they become available you have first choice on them before they are listed to market. This in turn allows you to negotiate the price without the pressure of added competition.
If you are after a new vehicle that isn’t in the country yet, we can arrange to have this ordered and shipped in for you, with the total cost of the vehicle not due till it arrives at the dealership. This means you can focus on other things knowing that your new vehicle is on it’s way.
If you’re looking for a new or used vehicle and want to make the process easy & affordable whilst obtaining the vehicle you actually want. We recommend you reach out and talk to us about your requirements. If you’re looking to upgrade your business vehicles, we can even work to obtain you a minimal 2% finance rate and help teach you how to reduce costs on your vehicles even further.
Contact Us today for a commitment free consultation or to learn more about how you can save money on the costs of your companies vehicles & equipment we recommend downloading our latest eBook.