Will it be easier to buy a new car in 2022?

In the last two years there has been a global microchip scarcity that has affected the car industry. It has led to a supply shortage of new cars and rising prices of used cars.

“With some people being forced to consider buying a used car as the microchip shortage puts the brakes on the supply of new cars, the used car loan market is running hot,” says Mozo spokesperson, Tom Godfrey. 

Vehicles use microchips in various ways, for the safety system, stability control systems and airbags. Right now those chips are being snapped up by the consumer electronics and appliances industry since the demand for those items are higher than cars, due to people spending more time at home.

However, even with people driving less due to the pandemic, car sales continue and the supply hasn’t kept up with whatever demand there has been. That’s why Australians saw the price of second hand vehicles increase by more than 25% in 2021 compared to 2020.

There were some instances where used cars in Australia were actually more expensive than the listed price of a new vehicle, but due to struggling supply there were no new cars available for purchase.

What does the future of new cars look like?

As the global pandemic continues on, it is hard to predict when new car production will return to its pre-COVID state. Even despite the low supply and chip shortages, some new cars are being made. But since Australia mostly imports its cars it may be several months before you have the keys to your shiny new vehicle. 

2022 is expected to bring a range of new models, especially in the electric vehicle front. For example, Kia is launching its first all-electric model, the Kia EV6. 

If you aren’t too fussed about waiting a couple of months to drive your new set of wheels then maybe it’s time to look into the best car loan for you.

What are some of the best car loans?

If you want to know what car loans are the best of the best then you are in luck! By checking out our Mozo Expert Choice Award winners for Car Loans you’ll be able to quickly see who are the best in the business. More than 300 loans were analysed and compared by a panel of expert judges to showcase which loans offer Aussie borrowers great value.

If you are thinking about buying a car soon, check out Mozo’s car loan repayment calculator to figure out how much you can afford in your budget. If you want to learn more about car loans, you can also head over to our car loan guide page.