CAR sellers are preparing to have their arms twisted by canny consumers as the Australian dollar stays at high levels, economists and industry figures say.
A more powerful domestic currency is likely to take several months to make imported cars even better value, but private buyers of volume makes like Toyota and Hyundai are in a position to pin down a salesman (and they are mostly men) this weekend. CommSec chief equities economist Craig James said car yards would be offering customers sweeteners such as extended warranties, in-car DVD players and alloy wheels to convince them to buy now.
Car manufacturers and importers would be very concerned if people stayed away from the new car showroom on the expectation if they wait three to six months they're going to get much cheaper prices.
It could be they'll throw in free extras to prevent a car buyer going to a competitor or holding off a purchase. It will be a case of manufacturers looking very closely at their sales figures.
Car importers prefer to sell existing stock before they order new units, which are likely to be cheaper because of the higher Australian dollar.
The Federal Chamber of Automotive Industries (FCAI) and car manufacturers say vehicles are ordered three to five months in advance.
The domestic currency has gained 2.
5 per cent against the US dollar since March and has traded above the US80 mark for the past five weeks.
Economists say the Australian dollar will hold near the US83 mark as speculators continue to favour higher interest rate currencies such as the Australian dollar.
A stronger currency means locally built cars are put together with more affordable imported components.
When it comes to imported models, FCAI chief executive Peter Sturrock says private buyers are more likely to get higher specifications than cheaper prices.
We don't put the prices up and down like a yo-yo simply because the currency moves up or down, he said.
About 70 per cent of cars sold in Australia are imported.
But with interest rates still at 35-year lows and the economy growing strongly, Mr Sturrock does not expect customers to hold off buying.
The Australian Consumers Association says car dealers usually offer discounts or freebies towards the end of the financial year.
Smart buyers may not have to wait that long.
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