The best deals on new cars as prices are slashed amid coronavirus pandemic

Car sales have fallen off a cliff and showrooms are overstocked with prices of new cars slashed to get cash flowing through the door.

Fewer than 40,000 cars were sold in Australia in April – a fall of 48.5 per cent on the same period last year - and the biggest monthly contraction since 1991.

Australian Automotive Dealer Association (AADA) CEO James Voortman says he hopes sales will start to lift but with economic uncertainty around the coronavirus pandemic, dealers remain concerned.

April was also the lowest month in sales outright in almost 30 years and the 25th month in a row of sales declines.

With finance companies making it harder to secure funding and COVID restrictions in place, dealers are overstocked like never before.

June is historically the biggest month for car sales but dealers are still concerned.

Finance managers at dealerships are getting applications knocked back with companies much more risk-averse following the banking royal commission.

Dealers are willing to squeeze their already small margins to secure a sale just to keep some cash coming through the door to cover their hefty overheads.

While it's bad news for showrooms, it's good news for anyone in the market for a new car.

Savings of around $2000 to $3000 will be seen on popular cars while some top end utes could see savings of up to $8000 off the RRP.

The only thing that will keep buyers from seeing unprecedented sales is the falling value of the Australian dollar against key source countries for cars like Japan, Korea, Thailand, the United States and European Union, CarAdvice.com.au national motoring editor Josh Dowling says.

"If you have cash or access to finance, it is absolutely a buyer's market," he says.

"Dealers are desperate to move metal… the coronavirus has absolutely slammed the brakes on new car sales."

CarAdvice.com.au is owned by Nine, the publisher of this website.

Not all brands have suffered as badly, with Toyota emerging as a clear winner during the downturn.

To kickstart sales, the AADA wants the Federal Government to extend its $150,000 instant asset write-off initiative beyond June 30, a review of taxes on cars and a loosening on funding.

"The luxury car tax should have been abolished some time ago," Mr Voortman said.

He hopes April was rock-bottom and with COVID-19 restrictions easing from Friday, more people will visit showrooms.

The best value deals, according to Josh Dowling from CarAdvice.com.au

City hatchbacks

Mitsubishi Mirage runout model with automatic transmission - $16,990 drive-away with seven-year warranty.

Suzuki Swift GL automatic with built-in navigation - from $18,690 drive-away with five-year warranty.

Small cars

Hyundai i30 Go hatch automatic - $23,470 drive-away with seven-year warranty

Kia Cerato S hatch or sedan automatic - $23,490 drive-away with seven-year warranty

Small SUVs

Mitsubishi ASX automatic (updated model) - $26,740 drive-away with seven-year warranty

Nissan Qashqai ST automatic (updated model) - $28,990 drive-away with seven-year warranty

Family SUVs

Ford Escape Ambiente automatic (runout model) - $28,990 drive-away with five-year warranty

Nissan X-Trail ST automatic (updated model) - $30,990 drive-away with five-year warranty

Seven-seat SUVs

Toyota Kluger GX 2WD automatic V6 petrol - $41,990 drive-away with five-year warranty

Hyundai Santa Fe 2WD automatic V6 petrol - $42,430 drive-away with five-year warranty

4WD utes

Toyota HiLux SR5 double cab automatic - $53,990 drive-away with five-year warranty

Mitsubishi Triton GLX double cab automatic - $35,990 drive-away with seven-year warranty (once a $1500 discount has been applied)

Tradie utes

Toyota HiLux Workmate 4x2 petrol manual - $24,490 drive-away with five-year warranty

Mitsubishi Triton GLX 4x2 petrol manual - $23,490 drive-away with seven-year warranty (once a $1500 discount has been applied)