Pros and cons of COVID-19 on Qld car market
Temporary automotive industry factory closures, global supply chain interruptions, border closures and restrictions on imports and exports have led to delays in the delivery of some new vehicles. At the same time, larger numbers of people using private instead of public transport due to public health concerns has driven a surge in second-hand car prices.
RACQ spokesperson Renee Smith said this was good news for some, but not for others.
“If you’re in the market for a new car, now could be a tough time to be buying because the supply of some makes and models may have been impacted by these issues,” Ms Smith said.
“We recommend thoroughly researching the availability of any new car you’re considering purchasing, before selling your current car. This is to ensure you won’t be inconvenienced by delays which in some cases can stretch for months, especially if you have a particular colour or other specification in mind.
“On the other hand, if you have a vehicle you no longer use and you’re looking to free up some extra cash, now could be a great time to sell. The limited availability of some new cars, has seen demand for second-hand cars skyrocket since the start of the pandemic.
“This has led to many second-hand cars being worth more than they were previously.”
Ms Smith urged members who have insured their vehicle for an agreed value to check that the figure is sufficient in today’s market.
“If you insured your car for an agreed value quite some time ago, that figure might not be enough to buy the same type of vehicle today,” Ms Smith said.
“We recommend researching the current value of your car, and checking your insurance policy to see if the agreed value would be enough to buy you a similar vehicle in today’s used car market. If you’re concerned your vehicle is under-valued, we recommend contacting your insurance company to discuss the options.”
Related topics
-
The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.
Insurance products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the Product Disclosure Statement (PDS) and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.
Banking and loan products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit licence 241195 trading as RACQ Bank. Terms, conditions, fees, charges and lending policies apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the disclosure documents for your selected product or service, including the Financial Services Guide and the Terms and Conditions, and consider if appropriate for you before deciding.
Except for RACQ Bank, any RACQ entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of RACQ Bank. RACQ Bank does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.
RACQ Operations Pty Ltd (ABN 80 009 663 414 AR 000234978) and Members Travel Group Pty Ltd (ABN 45 144 538 803 AR 000432492) are acting as an Authorised Representative of the issuer of the insurance, Tokio Marine & Nichido Fire Insurance Co., Ltd. (ABN 80 000 438 291 AFSL 246 548). Any advice set out above is general in nature only, and does not take into account your objectives, financial situation or needs. Before purchasing any travel products, please consider the RACQ Travel Insurance Product Disclosure Statement (PDS) and the Target Market Determinations (TMDs) that apply to these products. Whilst the PDS outlines the Terms and Conditions of these products, the TMDs outline the intended class of customers that comprise the target market for these travel products. This will allow you to consider which products best suit your objectives, financial situation and needs and consider the products appropriateness to your personal circumstances. TMDs also outline matters involving the distribution and the review of these products. The PDS, Supplementary PDS and TMDs for each travel product can be found here.