Impact of Covid on new car prices

The ongoing pandemic has lead to a reduction in car production, either through plant closures or reduced output. As a result the global stock of new vehicles is limited leading to a reduction in availability. In turn as with any product or service, a limited supply will often lead to an increase in prices. This is clearly evident in both the new and used car markets across Australia. Less new cars being sold reduces the number of trade in vehicles available, and in turn second hand vehicles sales have also been impacted. 

While the pandemic is far from over, there is now growing expectation that with the rollout of effective vaccines, supply will improve and normality will prevail. How long this will take is really anybodies guess at this stage, but the green shoots are starting to show.