2020 got off to a horrible start. First up, the bushfires that ravaged through pretty much the whole country. When we finally recovered from that, we were served a royal kick in the face by a pandemic which saw us close state borders, shelter up inside our homes and experience a shortage in goods and services. One of the shortages that we’re still feeling the sting of today? New cars.

So, why is there still a shortage of new cars in Australia? Haven’t we resumed normal life enough that new cars are back in production? What’s this all about? Let’s take a closer look:

How did the shortage come about?

Long story short, COVID-19 required the world to use social distancing methods to stop the spread of the virus. This then forced many car factories around the world to shut for a period, meaning there were barely any new cars being produced for a long time.

Since then, the waiting time on new vehicles has increased tenfold, turning people to the used car market. And once the production of cars resumed, the world experienced a shortage of components, particularly semiconductor chips. You can’t build a car without one. See the problem here?

Effects of the new car shortage in Australia

There have been plenty of effects, mostly negative, due to the new car shortage in Australia. First one: loads and loads of ticked off drivers who are in need of a new car. Second one: steep increase in the price of used cars by 30%, 40% and even 50%. Third one: difficulty in buying an affordable vehicle apart from that clapped out Commodore on Gumtree with the blown head gasket.

How to get around the new car shortage in Australia

You’ve got a few different options for navigating the new car shortage in Australia:

  1. Wait it out
    You could be patient and wait it out, no matter how desperately you need a new car. Since nobody really knows how long the new car shortage is going to last, you could be waiting a fair while.
  2. Ride your bike everywhere

Get into the Lycra and start riding your bike everywhere. This one isn’t really of any use to you if you’re a tradie, technician, or drive a fair while to get to work.

  • Talk to the team at Fingo

Need to get around the new car shortage? Fingo have the right answers for you.

Fingo are Australia’s car-buying, car-trading, car-selling and car-financing experts. Whether you’re a business or an individual, Fingo offer smart car finance advice and methods on how to buy the right car or fleet of cars, even in such a challenging climate as now. Get in touch with an expert from Fingo and beat the car shortage today.

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