Buying a Car Post Lockdown (VIC)

RockSand on 08/10/2020 - 20:29

Hi guys, another car buying post here, please let me know if this is a dupe and I will delete the thread.

I am planning to purchase a first car after the lockdown restriction got eased up, nothing too fancy budget is around $15k maybe more. Has anyone got any opinion on buying new/secondhand, given the industry have just gone through a long period of absence? IMHO:

  • Dealers may have stocks piling up that they need to get rid (need to scout for bargains?)
  • That being said, manufacturer/supplier might not have supplied the dealers with too much stocks anyway as demand is low
  • Secondhand dealers with old stocks aplenty and no buyers
  • Private sales remain the same number, although now riskier as cars have been sitting on driveway with little use for months

Are any of these truer than others? If that's the case would the best thing is to shop around for new car dealers?

Any additional insight is appreciated. Cheers,

Automotive

Comments

  • [Deactivated] on 08/10/2020 - 20:38
    +3

    You are going to want to be more specific.

    Currently, you have a lot of words but in effect, you're asking - what car should I buy for $15k?

    GQ Patrol

    • RockSand on 08/10/2020 - 21:54

      Nah I do have several car models in mind, done my research etc. Just curious about the auto industry during covid

  • 87percent on 08/10/2020 - 20:39
    +1

    Don’t forget to factor in insurance on your car!

  • jaykay on 08/10/2020 - 20:40
    +14

    actually what you wrote is all opposite - cars are way more expensive than when they were before lockdown say back in feb 2020 or jan 2020. Less stock now, less sellers, more demand than supply. the prices of cars has gone thru the roof , in VIC anyway. Dealers are taking advantage by increasing the prices because they know they can sell for more.

    • justaperson on 08/10/2020 - 21:43
      +1

      Dealers have been jacking up prices by up to 30% because the cost to purchase replacement used stock has increased by up to 30%. Huge shortage of cars due to the production of new cars being reduced since the pandemic.

    • RockSand on 08/10/2020 - 21:54
      +1

      I see, that's unexpected and certainly interesting

      • bazingaa on 09/10/2020 - 02:12

        Why ? now everyone tries to buy a car and avoid public transport as much as possible

  • dcep on 08/10/2020 - 20:40

    15k new car … what car ?

    • jaykay on 08/10/2020 - 20:46

      he said, new/second hand. you cant buy a new car for 15k , maybe a fiat 500 maybe??

      • justdigi on 08/10/2020 - 22:13

        Fiat 500 cost $25k, but you can get a MY19 runout for $22k.

        • jaykay on 08/10/2020 - 23:51

          Prices have increased … I bought a brand new fiat 500 for the Mrs around 5 years ago for 15k drive away from the flat dealer..

      • nubzy on 09/10/2020 - 09:51

        Great cars those Fiat 500, too small for me, but if I could afford to run multiple cars i'd get the Abarth version

    • RockSand on 08/10/2020 - 21:56

      yeah sorry that was just a rough guide on my purchasing power, meaning im not after something luxurious

  • jaykay on 08/10/2020 - 20:44
    +5

    all the cars I have saved in my carsales watchlist have been either sold quickly or the prices have INCREASED, not decreased. So if I were you, if you have 15k to spend, dont spend it now, wait until next year or when prices drop and supply catches up.

    • RockSand on 08/10/2020 - 22:01

      so people still go out and buy cars despite less travelling.. not sure how they bypass the 5km shopping rule to inspect and transact?

      • jaykay on 08/10/2020 - 23:50
        +2

        People are not spending on eating out, going to bars etc , so they have more money saved to buy a car. Hence prices have increased. From March to now I would say prices have increased at least 20% for the same car model.

        • netjock on 08/10/2020 - 23:57

          Not eating out, not going to bars. What are you going to do with a car?

          Price increases are only on second hand cars but at a certain price point it seems. 1 or 2 year old cars are still cheaper than buying new.

          Buying a second hand car is like an emotional assistance animal during COVID19. Satisfaction of knowing there is a car, if you could go anywhere.

          • Hardlyworkin on 09/10/2020 - 06:54

            @netjock: Given travel on planes is limited at best right now, it's road trip time!

      • Euphemistic on 09/10/2020 - 09:49

        A big part of it is supply. New cars were subject to supply issues. Factory shutdowns, delays in shipping etc. people can’t get new cars so they buy used, more demand for used cars.

        demand goes up, price goes up. New car prices rise, used car prices rise.

        Some people have more spending money as they can’t travel overseas, they are more likely to upgrade a car.

        People avoiding public transport, buy a car.

        If victorians can’t travel to buy cars, but NSW demand is high I’d guess there are a bunch of cars crossing the border for sale. Transport businesses can still travel.

        A whole bunch of factors.

    • Gmetal on 08/10/2020 - 22:23

      Yea I noticed this as well… i guess cars are convenient for visiting family or whatever without using public transport. I bought a used car 1 year ago, and prices for that year model (2017) with similar or higher Ks have gone up 15%, and the car is even older now. Could also be people not buying new cars and hence holding on to used cars longer.

    • netjock on 08/10/2020 - 23:54
      +1

      Cars are going to be like pets after the pandemic. Going to see them abandoned all over the place.

    • SBOB on 09/10/2020 - 19:21

      Yep.
      Went car shopping this week for a used car for my mum.
      I've never seen used car sections in places like Toyota, ford etc dealers so empty.
      A major Toyota dealer in Newcastle barely had enough to cover their fence line to give the appearance of having stock.

  • thatonethere on 09/10/2020 - 02:01
    +1

    ACT hail storm meant it has been a sellers market even in Vic and Nsw.

    Combine that with bushfires and covid19…

    • JDMcarfan on 09/10/2020 - 11:35
      +1

      upvoted. or you just buy one of lightly hail damaged cars and have mechanically perfect, but cosmetically blemished car for about 50% of its pre-COVID value.
      Between the extended fam and I, we've bought about 5 cars from the auction lots, and are quite happy with our buys.
      This is obviously subject to state regulations, being from NSW I had to buy a 15+ yr old car to get around the WOVR, whilst the rest of my ACT based fam got 5yr old ones.
      Best deals have been a Subaru Foz XT and an XV both 2014, 100k km and light panel damage for 7.5k (market: 20k) and 2.9k (market: 13k).

      • idonteven on 10/10/2020 - 09:07

        Did you do anything about the panel damage? Pdr?

        • JDMcarfan on 10/10/2020 - 20:56

          None of us have yet. But I'm looking around and getting quotes. I'm aware that PDR is quite expensive, but have a mate who works at a dealership and is trying to hook me up with their associated PDR guy who does whole cars for $600.

          I'm happy to live with the damage on my car (Lexus LS400), if it doesn't work out, nor do I plan on keeping it long-term. Given the car is largely steel (and not aluminium) and given its quite minor damage (about a dozen dents), I hope to get it fixed for around that price but don't think paying market rates to repair it is worth the money for such an old car.
          For the Subaru's both are white, and you don't really see the damage when more than a few meters away (nor do their owner's care). The most noticeable damage when you look at the cars from that distance is on the bonnet, and we're all casually looking for wrecked cars of the same colour so we can just swap panels.

          • idonteven on 10/10/2020 - 21:43

            @JDMcarfan: Good idea with the scrap yard. So you’d be looking for a rear end write off. Is the roof dent free?

            • JDMcarfan on 10/10/2020 - 23:15

              @idonteven: Yeah rear or side impact wrecks are our aim.
              Definitely not dent free, each of them have at least 3-5 on the roof, but they are generally quite shallow. Mines probably the best of the bunch, where the roof could easily be PDR'd, but I've got a few hits on the rear left quarter pillar (including one where the hailstone must've been the size of a tennis ball).

              The Foz has the most on its roof, but given the height of the car you don't see it unless your looking for it, and fortunately the sunroof is crack-free.

              The cars were all bought in Apr/May, so given the COVID situation and all the auction houses being closed to the public, I think we got pretty lucky. Buying on-line and site unseen is risky business, but contributed to low prices (given equal playing field for all buyers) and the photos provided were remarkably high-res. Being hail damaged lots, we assumed (proven correct) that the cars were mechanically well-maintained.

              • idonteven on 10/10/2020 - 23:33

                @JDMcarfan: Do you have any issues with insurance? Does insurance know that they were hail damaged?

                • JDMcarfan on 12/10/2020 - 09:54

                  @idonteven: No there's no issues with getting the cars insured despite what a lot of people say to scaremonger people from buying WOVR'd cars.

                  Both the Subaru's are under Comprehensive Insurance with NRMA and another provider (don't remember name), and the insurer's are specifically aware that they are on the WOVR registry and have pre-existing damage. The only stipulation is that they can only be insured under "market value" (they'll quote redbook and minus a % for existing damage), so there's a possibility that we might have to argue is the cars are ever W/O again. Also, cover specifically excludes anything relating to the existing damage, so no windscreen cover (despite no damage) and if its in an accident, they'll only cover panels directly impacted.
                  To us that seems perfectly fair, and as an added bonus market value premiums were cheaper than the cheapest agreed anyways.

                  Personally, I'm running with 3rd party insurance, so I don't need to disclose it nor do my insurance care (I did mentioned it to them), as the car is assessed at "market value" when in a not-at-fault incident. Only chose to get 3rd party given the $120 NRMA deal, the fact the car isnt driven much and given my age, premiums were over $2k for a car that I'd expect to be worth no more than $7k (agreed Values: were 11-15).
                  If I get the car pdr'd then from anyone's perspective the car (insurer's/future buyers) the car is damage-free, as there's no record of it on any databases. I wouldn't disclose it to any 3rd party, and would expect to get the full market value in either event (accident/selling).

    • outlander on 09/10/2020 - 19:30

      Damn Vic not allowing hail damaged cars from interstate to be registered. I would totally go for a shorttrip there and save a few G's

      • JDMcarfan on 10/10/2020 - 23:22
        +1

        haha yeah, I'm bummed too. There were some killer deals on some newer "sporty" cars, but NSW has the most retarded rules of all states, where any repairable write-off including hail damaged ones, cannot be re-rego'ed (There are a few exemptions, but 99% of cases won't comply). To make things worse is that fact that NSW no longer classifies write-offs as "repairable" so many NSW-regoed cars in the Canberra area were declared "Statutory" for damage that was minor and purely cosmetic, and would in any normal circumstance be "repairable".
        I presume that most of them were sold to exporters who shipped to NZ and got them rego'd there. At least the kiwi's get a good deal out of it.

        The auctions have largely cleared up, but in future you could always look for cars like I did and get ones that are over 15yrs old, and hence WOVR exempt.

        • outlander on 11/10/2020 - 10:50

          That really blows.

          Vics rules aren't quite so draconian as that. You can get technically get hail damaged cars registered, and it doesn't cost anything if the damage happens in-state. But as soon as it crosses 1m over the border.. you gotta get it recertified. And that can only be done by a government agent, who charges something like $1000 just to look at it.

          Doesn't make much sense to me. If it wasn't for that, I'd be driving a 2015 prius, instead of a gas guzzling 2001 commodore.

          get ones that are over 15yrs old, and hence WOVR exempt.

          Thats an idea. Only worth it for certain vehicles I imagine.
          There's a hit on write-off vehicles value both on the frontend and the backend. You get it cheaper, but it also sells for less. In my mind, that means they're best bought relatively new and then driven into the ground.

          • JDMcarfan on 12/10/2020 - 09:59

            @outlander: Yeah you're right about buying rel. new and running into the ground.
            As per my earlier comments, that's exactly what my extended fam are planning to do with their buys. And then for me, I've waited to find something somewhat rare and sought-after (nowadays at least), so that when it comes to sell I should be able to hopefully break-even (or come close).

  • Banana on 09/10/2020 - 08:54
    +1

    My 1year+ car is now worth more than what I paid for, but I can't sell it because it going to be more expensive to buy the same car @@

  • herecomestheoost on 09/10/2020 - 12:28
    +1

    Cars have a massive Covid tax on them… I've noticed it getting better slowly.. But I'm in the same boat as you.. I need a new car soon but I'm going to wait out this crazy price hike.

  • Drakesy on 09/10/2020 - 13:15

    I think you'll find second hand prices have gone through the roof. Here in WA over COVID prices went up across the board for secondhand cars by ~20%. some 4 months later and they're starting to return to normal (except for 4wd's).

    IMHO if your just buying a car, wait it out because at the moment jobkeeper/seeker is inflating the prices. As this drops off you'll find that the recession will start to bite and people will be forced to sell that second or third car.

    If you're selling and buying then you should lose out less as your trade in car would have similarly appreciated in value.

  • idonteven on 10/10/2020 - 09:06

    I sold my car recently after owning it for 5 years and adding 80k km. Sold it for more than what I bought it for.

    • uggugg on 10/10/2020 - 11:55

      I’m going to quote this every time someone tells me a car is a depreciating asset.

      What make/model was it?

      • idonteven on 10/10/2020 - 13:00

        Honda DC5 Type S. Was stoked to get more than what I paid.

  • wmxc on 10/10/2020 - 09:24
    Merged from [VIC] Anyone Purchased a Car during The Lockdown? How Did You Do It?

    Hello all,

    I basically want to understand the steps you took to purchase a car in lockdown.

    I am not sure when this lockdown is going to end and I need a car to do essentials shopping. My wife also needs to get hospital at times and we cannot get uber/didi/ola quite easily where we live.

    Any tips much appreciated!

    • DannyC on 10/10/2020 - 09:34

      Are you looking for a 2nd hand vehicle?

      From Car Advice:
      Can I buy a new car from a dealership in metro Melbourne during lockdown?

      LATEST UPDATE, 7/10/20: "Yes, car dealerships and caravan sales yards are permitted to operate under a contactless click-and-collect model only, but test driving, inspections and demonstrations are not permitted," the DHHS says.

      "However, if you are buying a car you can only leave home if it is necessary to buy the car at this time e.g. if you are a permitted worker and need the car to get to work."

      If you have already placed an order prior to the lockdown, dealers have been permitted to stay open to fulfil these existing orders.

      • wmxc on 10/10/2020 - 09:40

        Correct - buying a second hand vehicle. Just sad that I cannot do inspections and test drive.

    • Melb69 on 10/10/2020 - 09:38
      +1

      That line about workers only needs to be corrected. Surely if you need to get to the supermarket or medical it is one of the essential things you can do, and thus permitted to purchase a car. But no test drives and within 5km. I'd just wait till 19th. Do your reasearch now.

      • wmxc on 10/10/2020 - 09:40
        +1

        yeah that is what is pissing me off. Like how are they saying no (profanity) test drives! I am buying a used vehicle :(. I need to test drive and inspect.

        • EightImmortals on 10/10/2020 - 10:29

          They don't care, about your car, your income or your health. Why you act surprised?

        • yellowfever on 10/10/2020 - 11:24
          +1

          You're not the only one son. We all need hair cuts too. We all work around it.
          The work around here is you can still buy the car without test driving it. Test driving is not essential. everything now is inconvenient, that's the world we currently live in.
          It's not too bad if you already know the car you want.
          Many people buy super high end cars without test driving. It's the same concept. If you are confident and want it then there is a way.

    • netjock on 10/10/2020 - 11:24

      No car share scheme where you are? Unless you need to go long distances regularly car share works out cheaper.

      • wmxc on 11/10/2020 - 10:41

        Nope - no Goget or anything of that sort.

  • raiseyoursteaks on 18/10/2020 - 07:35
    +1

    If you have a mechanic friend and can do all the necessary checks, take the dealer out of the equation and buy direct. For that amount, you'd get a good used Japanese car. Make sure you check that the asset has not been written off and road worthy.

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