Your questions answered: How has COVID-19 affected the market?

The COVID-19 pandemic has forced manufacturing plants to close and/or reduce production levels all around the world, putting a crimp in the pipeline of new-vehicle supply to markets including Australia.

And with limited new-car stock available and other macro factors such as people wanting to use cars instead of public transport, fewer used cars have been entering the market as trade-ins. As with anything in short supply, prices have trended upwards.

But now that vaccines are rolling out and countries like Australia are beginning to bring the disease under control, will vehicle prices roll back? And will availability improve?

Question: I’ve noticed a supply shortage in the new-car market, causing prices to rise with a subsequent price hike in the second-hand market. Will new-car supply increase soon? Is it even worth trying to buy now or is it better to wait? I missed out on an excellent deal on a new Toyota HiLux in June 2020 and it seems current prices are nowhere near the same anymore. – Talha A

Answer: Toyota and other key brands have told us that they expect supply of new cars to stabilise in the next few months. That said, reduced production during 2020 has definitely cut the number of vehicles stockpiled and this will affect prices for some time. If you are looking for a dual-cab there are also better choices and better deals than the HiLux. Our top rated dual-cab ute is the Ford Ranger, but the best buying can be had in a Mitsubishi Triton. The Nissan Navara is also a solid choice, but Nissan dealers may not be ready yet to do deals on the new model just released.

Question: We bought a 2015 Holden VF Commodore SS-V approximately three years ago for around $40,000. It’s green, with a manual gearbox and has only covered 19,700km. We are toying with the idea of selling it, as we have seen similar cars asking $50,000-$60,000, although none have such low kilometres. We bought it as an investment, it is garaged and is in mint condition, and obviously it is not driven a lot as we would like to keep the kilometres down. So, should we sell it or should we keep it? – Mara P

Answer: If you love it then keep it. Otherwise, it’s hard to know exactly when prices for cars like yours will peak. It is definitely not going to be a GTHO Phase 3 (or HSV GTSR W1) type of investment, so if you can get the price you want, don’t be greedy and move it on.

Question: We are wanting to replace our Ford Falcon FG XR6 which was recently stolen. We’re looking for a car that will be comfortable on four-hour trips and able to handle towing a small box trailer moderately laden or a tinnie. The budget is up to around $35,000. We have been thinking about a Holden Commodore wagon VF 2017 or an older FG Ford Falcon – or something else altogether. – Norm R

Answer: Given your apparent love for big Aussie cars the Commodore with a tow pack would be a good choice, but prices for them are soaring so you will need to move fast.

Question: I have a 2011 Ford Falcon G6E and I was just wondering where I can get the sat-nav updated. It hasn’t been updated for a good six or seven years and Ford obviously don’t build the Falcon G6E anymore. – Ray K

Answer: The best thing for you is to get a new aftermarket infotainment unit. It will give you lots more functions than a 2011 system, including quality Bluetooth connectivity. Even if you could get an update for the existing system, it is going to cost more than it’s worth.

Question: A young acquaintance looks after an elderly lady who owns a 1975 Toyota Corolla. It has about 116,000 miles on the clock and has been kept in perfect condition. She has offered it to my acquaintance for $10,000. Who could check out the car? I suggested RACV but my acquaintance thinks it should be someone who knows old cars. – Chris G

Answer: That’s a premium price for a Corolla, as one recently hit that amount at a classic car auction. A company like Shannons Auctions would know the value but a simple RACV check will reveal any mechanical problems with the car, as the Corolla was always simple and basic in the 1970s.

Question: l am considering upgrading my Kia Sportage, which l really like, but I need to know what to go for – diesel, petrol or electric? I’m worried that l will not be able to sell a petrol or diesel car in years to come, as the government keeps telling us there will only be electric cars in the near future. Also, is Kia going to bring out an electric car? – Chris

Answer: All brands will eventually have fully-electric cars, but currently they’re much more expensive than petrol models, so the value is questionable. Kia is close to introducing the Niro electric SUV here, however, and that might be more affordable. The change to electric is not going to happen overnight, despite what you hear from early-adopter countries like Norway, or countries with projected petrol vehicle ban rules like the UK. In Australia, now is not the time to go electric unless you are cashed-up or a committed greenie.

Question: My 18-year-old daughter has a $10,000 budget and is looking for a hatch. What are your thoughts on the best model to look for? – Chris M

Answer: Suzuki Swift. Every time. Nice looking, good value and quality, should be pretty safe for the money.

Question: I have a 2017 Holden Captiva which has done 101,000km and has a seven-year warranty. I think my turbo has blown as the car goes into limp mode and blows a lot of black smoke. Does Holden still uphold its warranty? – Damien D

Answer: Holden is honouring all its warranties and commitments for parts and service. Dealer showrooms have closed but there is still a network of service outlets. That said, the standard factory warranty was only three years, so it has expired by now in your case. You should dig up any paperwork you can find and approach the insurer underwriting the extended warranty you purchased with the Captiva. You may not be able to get satisfaction from the selling dealer if they’re no longer in business.

Question: Can I get your opinion of the Hyundai Santa Fe? We’ve owned Honda CR-Vs over the last 15 years, so it’s a big deal to change to Hyundai. The Hyundai looks very swish, but is it a good buy? – Linda F

Answer: The new Santa Fe is even better than it looks, ticking all the right boxes for a family SUV. Also look at the Kia Sorento, which was recently announced as carsales’ Car of the Year for 2020.

Question: I wish to purchase a wagon and my key criteria is long-term reliability. Which of the following do you recommend and should I be considering other models: Subaru Outback, either the run-out model or the new one just released; or the Skoda Octavia? – Tony J

Answer: Based on the brand’s excellent long-term reputation in Australia, it has to be the Subaru for you. There should be a better deal on the run-out version of the Outback (if any stock remains), but there are good improvements in the new one that justify picking the latest model.

Got a question but don’t know where to find the information you need? Email us at editor@carsales.com.au

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