Pros and cons of COVID-19 on Qld car market

RACQ is urging its members to be aware of the impacts of the COVID-19 global pandemic on Australia’s new and second-hand vehicle markets.
Buying car

Temporary automotive industry factory closures, global supply chain interruptions, border closures and restrictions on imports and exports have led to delays in the delivery of some new vehicles. At the same time, larger numbers of people using private instead of public transport due to public health concerns has driven a surge in second-hand car prices.

RACQ spokesperson Renee Smith said this was good news for some, but not for others.

“If you’re in the market for a new car, now could be a tough time to be buying because the supply of some makes and models may have been impacted by these issues,” Ms Smith said.

“We recommend thoroughly researching the availability of any new car you’re considering purchasing, before selling your current car. This is to ensure you won’t be inconvenienced by delays which in some cases can stretch for months, especially if you have a particular colour or other specification in mind.

“On the other hand, if you have a vehicle you no longer use and you’re looking to free up some extra cash, now could be a great time to sell. The limited availability of some new cars, has seen demand for second-hand cars skyrocket since the start of the pandemic.

“This has led to many second-hand cars being worth more than they were previously.”

Ms Smith urged members who have insured their vehicle for an agreed value to check that the figure is sufficient in today’s market.

“If you insured your car for an agreed value quite some time ago, that figure might not be enough to buy the same type of vehicle today,” Ms Smith said.

“We recommend researching the current value of your car, and checking your insurance policy to see if the agreed value would be enough to buy you a similar vehicle in today’s used car market. If you’re concerned your vehicle is under-valued, we recommend contacting your insurance company to discuss the options.”

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Things to note

The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.