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Cars and Corona... what are the impacts

Car sales are on track for their least effective year since the Global Financial Crisis hit due to the COVID 19 disease. A lot has changed regarding how the Australian car market operates.

How the coronavirus has affected the Australian car market

There is no hesitation that the coronavirus has affected sales in the Aussie car market. This is evident in decline in new car sales across Australia. According to Tony Weber, the Federal Chamber of Automotive Industries (FCAI) chief executive, almost all Australian car companies are reporting a drastic decline in dealerships and softening of sales.

The Australian Bureau of Statistics has lately issued figures indicating that 31% of Aussies have experienced a decline in their income levels because of the pandemic. This is a significant contributor to the reduction in car sales in April to 48.5%. This was the most significant decline registered in almost 30 years of tracking car sales as Covid 19 rattled consumer confidence.

Some potential customers delayed their decisions to buy cars because of economic anxiety, and others found it hard to obtain finances for purchasing cars. People couldn't move to car dealerships because of the social movement restrictions, which kept them indoors.

In March and April, used cars' prices experienced their most significant two-month decline in Australia by 14%. However, by May in 2020, they bounced back strongly by 10.6% to be nearly back to the pre-pandemic levels. This price recovery has been influenced by several factors, including;

  1. A decline in the supply of used cars, low fuel costs, and a reduction in public transportation usage during the Covid 19 lockdown have significantly helped price recovery.

How are Australian car dealerships responding to the outbreak of the coronavirus?

To reduce the coronavirus's spread, Australian dealerships have adopted new measures to combat the spread of the Covid 19 disease. New hygiene measures like cleaning a car steering wheel, placing covers over seats, car technicians wearing gloves, maintaining social distance within car dealerships are the new normal.

Also, plastic bags are availed at several Australian car dealerships, where you drop your car key into the plastic bag, and the technician or salesperson picks up that plastic bag, seals it, and can open and drive your car without touching your car key.

Because of the need to minimize physical contact with many people, it could lead to the coronavirus's spread. Some Aussie car dealers are using modified initiatives such as virtual sales consultations, using their smartphones for vehicle tours, online reviews of cars for trade-ins, and contactless test drives. The car dealer takes the vehicle to their customer and delivers the car keys in a zip-lock bag.


The Covid 19 pandemic has caused a lot of changes in the Australian car market. There has been a reduction in sales for new cars as compared to the used cars. Many car dealerships are adjusting to the new normal by following the standard operating procedures for reducing the spread of the deadly coronavirus.

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