How is COVID-19 impacting car imports and sales?

Thinking about importing a car during the COVID-19 crisis? Here are the answers to your questions based on everything we know about COVID-19 so far…

In a matter of months the COVID-19 (Coronavirus) pandemic has impacted almost every facet of daily life, causing never before seen economic, political and social disruptions that have had a flow on effect to almost every major industry – including the automotive industry. 

This rapidly evolving crisis is changing the car buying landscape almost daily with far-reaching impacts on everything from manufacturing and sales to importing and even repairs, so understandably it’s creating a lot of confusion and questions for buyers. 

We’ve done our research, and we’re here to provide important information and answer key questions on COVID-19 and how it’s affecting car imports in Australia. 

Can cars still be imported into Australia?

Currently there are no restrictions being placed on importing goods into Australia (including cars) and regular import service such as permit processing and inspections are unaffected. However, some countries are experiencing restrictions or reductions on their exports either due to lock-downs or decreased demand and changing consumer behaviours. Whilst this is not currently impacting electric, hybrid or performance vehicles the current disruptions may contribute to a reduction in vehicle supply later on down the line, as well as any number of other currently unforeseen consequences. As countries continue to grapple with and come to terms with the pandemic, the long-term impacts of the virus will start to become clearer. 

Will Coronavirus impact on waiting times for car imports? 

It’s worth noting that the current restrictions may cause delays for items arriving in Australia, including cars. Whilst imports are still allowed and Australian ports are still operating, border restrictions, reductions in international shipments and freight and quarantine requirements are increasing wait times in some cases. Shut-downs in other countries are slowing down the usual pace of imports, although they have not stopped. As trading partners and exporting countries begin to manage the impact of the virus, these delays should lessen. 

How is COVID-19 affecting car sales?

COVID-19 has already contributed to a huge reduction in car sales, the Federal Chamber of Automotive Industries observed an 18% reduction in new car sales in Australia for March 2020, compared to the same time last year and experts are predicting an overall 2.5% slump for sales across the globe – this will undoubtedly also impact the sale of used cars and imports. 

The big drop in sales will have a number of consequences globally. Many car manufacturers are halting operations and marketing activities with a decrease in 2021 production and new car releases becoming more and more likely and the possibility of supplies dwindling in COVID-19 affected countries. Despite the overall decline however, in the short term some car dealers and importers  have seen new demand for cars – new social distancing measures have changed the way we get around, with people now feeling more reluctant to take public transport or walk. 

Is now a good time to import a car? 

If you’re in a secure position, then now is a great time to buy a car. 

The coronavirus crisis has reduced buying demand with many people now opting to limit spending as they wait out the crisis. It has also increased financial pressure on many sellers who now face a competitive landscape – there is currently an impressive supply of premium cars and potential buyers have many options. 

Buyers now have an excellent opportunity to take advantage of a buyers’ market to negotiate great prices on electric, hybrid and performance cars. Many experts are predicting lower sales prices over the course of the next 12 to 18 months and that car buyers can expect to see some great deals for the remainder of 2020.

Should exchange rates be considered?

The exchange rate has been volatile since the crisis began and the Australian dollar has seen a drop against most other currencies due to the disruption to global markets. The lower exchange rate has prompted some buyers to question if they should wait for a recovery before importing a car, but it’s worth remembering that the lower exchange will likely be offset by reduced prices.  If you were planning on importing then consider shopping around with your original budget, as it’s a great time to find a bargain even with a weaker Australian dollar. 

Is it safe to import a vehicle during coronavirus?

Many buyers are wondering about the safety of importing a car during the current pandemic and understandably so as COVID-19 is so new and there is still so much we don’t know about it; scientists have been racing to catch-up and learn more about it since it was first reported in China. 

What we do know is that importing cars is still considered safe; the World Health Organization has advised that the chances of catching the virus from commercial goods are low. Whilst they are yet to confirm how long it can survive on surfaces, preliminary studies suggest it ranges from a few hours to a few days depending on the conditions and temperature it is exposed to – since most car imports can take between 12 to 15 days the risk of becoming infected from a car that has been imported is minimal. 

That being said, importers are following infection guidelines including wearing personal protective equipment to help reduce the chances that the infection could be passed on through car surfaces once goods are in the country and it is a good idea for buyers to practice good hand hygiene and sanitise surfaces to limit the risk of infection. 

Still have questions or concerns about COVID-19? Get in touch with us today, we’d be happy to discuss your needs and provide the answers you’re looking for.