That’s according to a survey conducted by Cox Automotive Group, in conjunction with the Australian Automotive Dealer Association (AADA).

The half-yearly survey seeks to understand dealer perceptions of the current retail automotive market, with anything over 50 on an indexed scale of 0-100 deemed a positive outlook.

It found dealers’ market outlook fell to 18, down from 26 a year ago and from 36 in late 2018.

Dealers also hold a dim view for the future, with the next six months’ outlook index down to 20 from 41 in late 2018.

The news comes after it was reported new car sales took a nosedive in 2019 and again in January 2020.

Cox Director of Marketing and Communications Matt McAuley said strong pressure to lower prices, increased difficulty in obtaining credit, and falling profitability of dealership finance and insurance were the main drivers of falling confidence.

“It is easy to see why they (dealerships) have a poor view of both the last six months and the next six months given the numerous factors affecting their businesses,” Mr McAuley said.

The survey found the biggest driver of dealers’ low confidence was market conditions, with 81% ranking it their number one factor, compared to 51% just over a year ago.

Credit availability was also a big factor, moving from seventh spot in 2018 to fourth spot in the most recent results.

The survey was first conducted in the third quarter of 2018, and 2019’s fourth quarter survey results were based on 84 dealership respondents.

Looking for a fixed loan for a new car? The table below contains a handful of low-rate car loans.

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Filters
LenderCar LoanInterest Rate Comparison Rate* Monthly Repayment Interest Type Vehicle Type Maximum Vehicle Age Ongoing Fee Upfront Fee Total Repayment Early Repayment Instant Approval Online Application TagsFeaturesLinkComparePromoted ProductDisclosure
6.57% p.a.
7.19% p.a.
$588
Fixed
New
No Max
$0
$250
$35,278
  • No vehicle age limit
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
 Disclosure
5.66% p.a.
6.45% p.a.
$575
Fixed
New, Used
No Max
$0
$275
$34,515
6.52% p.a.
6.95% p.a.
$587
Fixed
New, Used
No Max
$0
$350
$35,236
  • A leading Australian Finance Broker with proven experience you can trust
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 Disclosure
5.99% p.a.
7.20% p.a.
$580
Fixed
New, Used
No Max
$12
$250
$34,791
6.24% p.a.
6.59% p.a.
$583
Fixed
New
No Max
$0
$250
$35,000
6.45% p.a.
6.72% p.a.
$586
Fixed
New
No Max
$0
$195
$35,177
6.49% p.a.
6.49% p.a.
$587
Fixed
New, Used
No Max
$0
$0
$35,211
6.50% p.a.
7.74% p.a.
$587
Fixed
New, Used
No Max
$0
$350
$35,219
6.57% p.a.
7.19% p.a.
$588
Fixed
New
No Max
$0
$250
$35,278
Loan amounts from $5k to $100k
  • No vehicle age limit
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
 Disclosure
6.89% p.a.
8.01% p.a.
$592
Fixed
New
No Max
$8
$400
$35,549
6.52% p.a.
6.95% p.a.
$587
Fixed
New
No Max
$0
$0
$35,236
More car loans
  • Available for purchasing new and demo vehicles
  • $5,000 to $150,000 loan amount
  • Redraw facility available up to $5000/day
  • Required: Good credit history, stable employment history. Aus citizenship or PR.

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Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Used car sales outlook better than new cars

Despite the dim outlook on new car sales, dealers held more positive views for their used car departments.

The used car sales environment has held firm with an indexed score of 44, which is in stark contrast to the new car sales environment score of 10,” Mr McAuley said.

Dealers also reported running costs of a dealership remaining steady, and fixed operations departments (parts and services) performing well, with most dealers rating those performances as ‘fair’ and ‘good’.