Bremer Ford Dealer Principal Paul Klease. Photo: Ebony Graveur
Bremer Ford Dealer Principal Paul Klease. Photo: Ebony Graveur

EXPLAINED: Why there is a car shortage in Ipswich

HOMES across Ipswich are not the only commodity attracting higher than usual demand from buyers.

Factors relating to Covid have led to a shortage of cars for sale across Ipswich car yards, as supply struggles to keep up with demand.

Ipswich car dealers said there was an increase in the number of people looking to buy cars as well as a reduction in the number of cars available to buy.

Bremer Ford at Ebbw Vale dealer principal Paul Kleasesaid supply constraints due to the pandemic meant fewer cars were making it to Australian shores.

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“All our cars are built overseas – some component that’s made in Germany while it’s been in lockdown for four weeks could impact the production of a car in Thailand because they happen to buy from that place,” Paul said.

“It’s all sort of part and parcel.”

Health and safety measures had also weighed down the process of shipping cars and car parts across borders.

“There are a lot more checks and steps that have to happen because of Covid,” he said.

“There are quarantine processes in place (to limit the chance of) contamination.”

Bremer Ford Dealer Principal Paul Klease. Photo: Ebony Graveur
Bremer Ford Dealer Principal Paul Klease. Photo: Ebony Graveur

Fewer new cars reaching Australia and higher costs involved in the production is enough to impact the car market, causing a rise in prices and a smaller range of options for buyers.

Delivery times of four to six weeks have blown out to three-four months.

Many shoppers who would have bought new have turned to the used car market instead.

“It affects used car prices because people can’t get new cars so the used car market is stronger as a result,” Paul said.

“It’s a case of, if you want the car, you’ve got to pay for it.”

As demand for cars rises, the scales have begun to tip further, with more people looking to redirect their travel budget toward domestic adventures.

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“Australia as a country used to spend billions on overseas travel and we don’t anymore,” Paul said.

“People are looking to spend their money more on recreation in Australia, I guess.”

Paul said customers who relied on public transport prior to the pandemic had bought cars to avoid sitting on a train or bus.

“You got a lot of people who once upon a time would catch public transport are looking at smaller cars,” he said.

“In the 20 years I’ve been doing it, this has been the longest consistent demand period I’ve seen.”

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A spokesman for Hellands Wholesale Cars told the Queensland Times the situation appeared the same in North Ipswich.

“(The increase in buyer demand) is well and truly above what it normally is,” he said.

“And there’s just not enough new cars coming in.”

Read more news by Ebony Graveur.

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