Because of COVID, used car prices are still high in 2022

The rise of used car prices during the pandemic is still due in 2022. As people turn to near-new purchases with the supply chain bottleneck due to months of waiting for new cars.

National motoring editor Joshua Dowling said: “The shortage of new cars available resulted in the price for used cars to increase. With buyers facing “not uncommon” delivery times of 3 to 6 months. The new car shortage, expected to last long and set to continue until 2022”. 

The reason for the increase in used car prices

Supply Chain: The global supply chain was affected when the pandemic outbreak started, making cars logistics shaky. The shortage of containers and the competition for cargo space has led to long delivery times.

Modern cars consist of many components. These modern cars rely on an intricate global dance. The parts of the car are being manufactured in one country and then shipped to another. This is the reason for shipment delay on new cars.

Due to supply chain issues, the used cars market is booming. This means it has become harder for people to navigate the market. Used cars are in higher demand than ever before. And people are turning to them more because they want to choose a car that is sustainable. 

Chip Shortage: carmakers are competing with each other for chips. The chip shortage means there is a lot of competition even with other industries for these components. Modern cars can have more than 1,000 chips for control of everything from mirrors to airbags and tyre pressure gauges.

When the pandemic first struck, cars companies cancelled orders they had placed for Chips. However, after the global economy bounced back more strongly than anticipated, car companies who waited to pick up their old orders found they were waiting at the back of the queue.

Chips are also in high demand for other industries like the medical industry and the computer industries.

Since the car companies are very good at keeping the prices they pay down, the Suppliers are now in turn making money from non-vehicle orders. 

In response to Covid and long delivery times, many people have turned to the used car market. With the demand for used cars outweighing the availability of them, the seller’s market has developed.

When will it end?

“That’s the important question, “When will it end?”  and It keeps getting pushed out,” says James Voortman, chief executive of the Australian Automotive Dealers Association.

“Some manufacturers said that they’re hopeful the shortage of chips will start to improve by the middle of this year 2022.”. As the global supply chain straighten out

What you should know before buying a used car

A new survey found that 20% of people who purchased a used car did not have a positive experience. Here is the reason why :

In spite of the average Australian spending 22 hours doing the research before buying a used car privately, 4 out of 5 people still experienced some level of confusion. In addition, many of those who purchased through a private seller had to pay additional costs. This additional payment includes necessary mechanical repairs after purchase or additional registration fees due to where you live.

A lot of Australians worry about a car’s warranty when buying a used car. Many others were also concerned that they had bought ‘a lemon’ and questioned if they were getting a good deal, or if the seller was trustworthy.

Many Australians also struggled with the technical aspects of inspecting cars and would rely on appearance or trust the seller’s word. In the assessment phase of buying a used car, many Australians missed key steps such as not organising a mechanical inspection or reviewing the car’s logbook. In addition to this, they didn’t check if the cars had been in any accidents before or had ‘repairable writeoff history’.

To help Australians navigate these complexities and more, German Precision offers a technical service to inspect your potential car prior to purchase. As part of the car inspection, we take pride in reporting minor/major damaged areas and signs of prior repairs. We can focus on details and make sure that each car is not considered a crashworthy one.

Sources 9news.com.au and allianz.com.au

A New Explanation Behind Car Delays and Price Increases In Australia

A slew of unforeseen setbacks has put a halt to new car delays for deliveries across Australia, raising the risk of price hikes. The semiconductor shortage has received most of the blame so far. But there are two other major variables that will make it difficult to find a bargain in the near future.

We have been in the automotive industry since 1984, ranging from apprentice to master technician, workshop foreman, controller, service advisor, and service manager, in numerous premium vehicle businesses. We have built a level of loyalty that in the 21st Century is vital. After all, customer service and care is a point of difference.

We hope we are able to help you out with your needs. Our business is also known as Prepurchase Check.


Because of two new supply chain vulnerabilities unique to Australia, high-ranking automotive industry insiders have warned that the waiting time for a new car will not improve until the second half of 2022.

The next battleground – and bottleneck – for getting new cars into local dealerships and onto consumer driveways is shipping.

The Shipping Matters

According to automotive logistics experts, the number of car-carrying freighters arriving in Australia has halved since the global pandemic began. As a number of shipping companies try to avoid long quarantine waits due to crew COVID outbreaks or agriculture breaches such as stink bugs – and ships are having to be reconfigured to meet our changing taste in cars.

The cost of available space on car-carrying ships destined for Australia has increased, owing to a shortage of frequency as well as the types of vehicles we are purchasing.

The shift toward larger vehicles such as utes, four-wheel-drives, and – in specially – vans has put unexpected and unprecedented strain on ships delivering cars to Australia.

Demand for high-roof vans in Australia has more than doubled as a result of the pandemic’s quick surge in online sales – and the subsequent spike in parcel deliveries.

While some car-carrying ships have flexible decks to accommodate larger vehicles, high-roof vans and other large vehicles waste space above them, making transportation less efficient and costly.

“High-roof vans are long and tall and, in round numbers, take up the equivalent space of two or three passenger cars, and the shipping companies charge for that,” said one automotive industry insider, who estimated vehicle shipping costs had risen from $1200 to $1600 for a ute or SUV, and from $2100 to $3900 for a long-wheelbase high-roof van.

An added complication is that foreign transportation is usually paid for in US dollars, therefore Australian vehicle importers must factor in currency exchange rates when determining drive-away charges.

“Cost is one barrier, now finding space on a ship is increasingly becoming a concern,” said the industry insider.

Most car-carrying shipping decks, according to the logistics expert, are divided into three height categories: below 2 meters, below 2.5 meters, and over 2.5 meters. The latter type includes high-roof vans and other large vehicles.
Industry insiders say car companies are prioritizing passenger cars, SUVs, and utes that fall under the 2-meter limit because those vehicles are in the highest demand and, due to their vast numbers, deliver the most overall profit.

Larger cars, such as high-roof vans and US pick-up trucks, are making their way onto car carriers heading for Australia, but ships aren’t running frequently enough to keep up with the present strong demand.

“There hasn’t been a new (car-carrying ship) built since COVID started, and most of the ships are only configured to carry a small proportion of larger vehicles,” said one logistics industry insider who spoke to Drive on the condition of anonymity because he is not authorized to speak to the media on behalf of his company.

“On average, there used to be at least four car-carrying ships docking in Australia each week – two would travel clockwise and two would travel anti-clockwise around the country dropping off cars at major ports,” one industry insider explained.

“Now, on average, only around two (car-carrying ships) arrive in Australia per week because (some) shipping companies don’t want to risk being quarantined off the coast if a crew member has COVID, or don’t want to reconfigure their ships and hence can’t run as efficiently.”

Shortage of The Vehicle Storage

Another significant evidence of Australia’s continued new-car stock shortfall is the fact that vehicle storage facilities are now at less than 30% full across the country.

Prior to the epidemic, new cars were held in storage for 45 to 60 days between the docks and the dealers. The average time a new vehicle spends in storage between the docks and the dealers is now less than seven days, and several transportation companies have gone out of business as a result.

While most auto firms are held hostage by shipping lines, Hyundai-Kia, a South Korean conglomerate, is generally immune to this problem because it builds its own ships and operates its own vehicle-carrying freighters under the GLOVIS brand.

Hyundai and Kia are still experiencing chronic stock shortages and lengthy delivery delays, but this is mostly due to the worldwide semiconductor crisis that has plagued the automotive sector for the past 12 months.

Toyota, the world’s largest manufacturer and Australia’s most popular brand, recently took the unprecedented step of apologizing to customers across the country, many of whom have been waiting for up to ten months to receive popular models.

The Australian Automotive Dealers Association (AADA) has apologized to customers in line and urged them to be patient amid the new-car shortage, which industry veterans think has not occurred since World War II.

“We are as frustrated as many of our customers are,” AADA CEO James Voortman said. “Unfortunately the current new-car shortage is beyond our control and we are doing our best to keep our customers updated, but unfortunately that information can change daily or weekly.

“Our advice to customers remains the same as it was at the beginning of this unprecedented shortage,” said Mr Voortman. “If you want to buy a new car, please place an order and get in the queue so when stock arrives we can get you into a new car as soon as possible.”

Pre Purchase Inspection Before Buying Used Car

Upon this matter, buying used cars seems to be the option that is more essential for the people who want to buy a car.

The process of purchasing a used car has been revolutionized by online portals. It’s a lot easier now than it was in the ancient days, and finding the car you want is a lot easier. However, this does not imply that you should treat the purchasing procedure as a stroll in the park.

The ad won’t tell you everything you need to know about the car you’re considering. You’ll need to keep an eye out for certain less-obvious hazards. Doing a pre-purchase inspection check is therefore very important to ensure that if you are going to be spending more money in these difficult times, at least you are ensuring a quality purchase.

Having a mechanic inspect the vehicle through a company will also likely reveal any flaws. Having a certified mechanic inspect the vehicle will help to reduce the risk of purchasing a lemon car. You can also help to ensure that your future vehicle does not have any hidden issues by researching its reported history.

If you are looking for the best pre-purchase car inspector in Melbourne, do not hesitate to contact German Precision or Prepurchase Check today!

Source: drive.com.au and carhistory.com.au

Common Mistakes People Make at a Used Car Dealership

If you plan to buy a used car, walking into a used car dealership with salesmen trying to sway you into a sale can feel like a daunting experience. Unfortunately for new buyers, it can be all to common to make mistakes such as not requesting a test drive of the car or holding out with high expectations on what has been a good buy, only to miss out on the car altogether. However, buying a car doesn’t have to be as intimidating as you may have experienced in the past. In this article, we will look at some common mistakes people make at a used car dealership and some tips to avoid them. By eliminating them, you should be able to find the best car for your needs and your budget without too much stress.

Honest and Professional Pre-purchase Car Inspection in Melbourne, VIC

We have been in the automotive industry since 1984, ranging from apprentice, through to master technician, workshop foreman, controller, service advisor and service manager, in numerous premium vehicle businesses. We have built a level of loyalty that in the 21st Century is vital. After all, customer service and care is a point of difference.

We hope we are able to help you out with your needs. Our business is also known as Prepurchase Check.


#1. You Do Not Know What Car You Need

Buying a car is not like buying a new pair of shoes. There are in fact a number of questions to ask yourself – how much you can afford, reliability of the brand, known issues or defects with that particular model, size of the car and functional requirements just to name a few.

Sometimes for a brand-new car buyer, the showroom is not the first place to start. By conducting online research and comparing costs, specs and offers, you will be able to make an informed choice about a make and model of vehicle which will suit your needs. There are plenty of review sites and car shopping portals where you can gather plenty of information about the used car you may be thinking of buying.

#2. You Set High Expectations

Setting high expectations is one common mistake that new buyers make which can lead them to never achieving their goal of buying a used car. It is important to first understand the market value of the cars you have in mind is so that negotiations at the dealership can lead to an agreement. A smart dealer will be reasonable and look to sell their stock at a price that is competitive in the market. However, they will not be giving the car away, so some simple give and take will save you a lot of time in negotiation.

Simply do your research, set some boundaries and be aware of the reality of the costing of the car you wish to purchase. This is when you can hire a professional pre-purchase car inspector in Melbourne like German Precision to help you.

#3. You Do Not Take A Test Drive

When you decide to buy a car, do not trust the salesman’s words only. They are professionals who are interested in selling cars to make a commission. If they do not give you the opportunity to take the car for a spin, walk away. Returning a car should be straightforward, but unfortunately, all too many times can be difficult and paying for a car that feels right to drive is an important first test that should not be ignored. Gather as much information as possible and test drive a number of cars until you find the perfect one for you. Make sure that the drive truly tests the car rather than just a couple of turnings since you may pick up its problems after a decent test drive.

#4. Buying A Car You Do Not Need

Buying something that you do not need is another frequent mistake people make at the dealership. When you finally sit down to close the deal and sign the papers, be prepared to say “No” a lot since it is the time when the dealer tries to sell accessories or extended warranties that are either unnecessary or more expensive than expected. Make sure that you are not charged extra for things you have already negotiated with your salesman.

#5. You Discuss Your Trade-In Too Early

Many buyers find it convenient and appealing when driving their used car in and their new one away. If the dealership offers to discuss your trade-in, you should do more research on the value of your used car first to avoid making a potential loss. Alternatively, you can choose to sell your car separately so you may make more of a profit.

Pre-purchase Car Inspections in Melbourne, VIC

Have a professional inspector like German Precision to do a thorough pre-purchase car inspection in Melbourne to ensure that your dream car is operating properly and not a scam.

If you are looking for a professional pre-purchase car inspector in Melbourne, do not hesitate to contact German Precision or Prepurchase Check today!

source: mrwheels.com.au