Discounts return to new cars after two years of high prices

Discounts on new cars are just around the corner – after two years of record high prices in the wake of the pandemic – as a number of major automotive brands offer special deals in the lead-up to the end of the year.

US car giant Jeep has taken the discount knife to some of its most expensive models – $10,000 off the full retail price of selected vehicles after applying close to $20,000 in price rises over the previous 12 months.

Chinese juggernaut Great Wall Motors Haval – which has made it into the Top 10 in the new-car sales race a couple of times this year – is offering $1000 off most models across its range as it launches one last dash to the finish line for the year.

The discounts apply to the GWM Ute range and the Haval SUV range.

And small-car specialist Suzuki has joined the new discount wave, with $1000 off certain models (excluding the popular Suzuki Jimny pint-sized 4WD, which still has waiting times of six to 12 months).

Industry analysts say widespread discounting across the new-car market may take several months to materialise because most automotive brands are still dealing with a long list of backorders.

Delivery delays on most new cars remain stuck in gear – ranging from three months to two years, in extreme cases such as the Toyota RAV4 Hybrid – due to production line slowdowns, parts shortages, and shipping bottlenecks.

Nevertheless, the return of discounted prices from three major car brands – Jeep, Suzuki and GWM Haval – is being regarded by key industry observers that the tide is about to turn.

“In Jeep’s case, they’ve been caught out by their greed, with some astonishing price rises over the past 12 months. Jeep dealers – and car buyers – have said ‘enough is enough, we’re not paying these ridiculous prices you’re asking’,” said a senior industry executive, who asked to remain anonymous.

“When you look at (GWM) Haval, they’re clearly buying market share. It seems they have an internal sales target to hit by the end of the year, they’re going after MG and anyone else inside the Top 10, so they’ve turned on the discount taps to move cars out the door.”

When asked about why Suzuki had also joined the current discount phase, the industry insider said: “They’ve obviously had a few boats turn up and they need to clear the decks, plus they’ve also been slowly increasing prices over the past year or so.”

New-car buyers in Australia have been paying full price throughout the pandemic as production slowed, demand increased and waiting times blew out to months or years.

After two decades of heavy discounting – which sent some showrooms to the brink – car retailers have been able to charge full retail prices and full dealer-delivery fees over the past two years.

While it could be a several months before drive-away deals are more widespread, there are some savings – and some new-car stock – beginning to emerge.

Here are the new-car discounts in the lead up to the end of the year (most promotions expire 31 December 2022).