“Reviews of online car sales sites and dealer websites demonstrates that advertised prices for new cars are generally at or above RRPs [recommended retail prices] and ‘demo’ models have generally covered reasonable mileage, meaning they are often not a reliable indicator of the price that can be paid for a new car,” the ACCC said.

The competition regulator also found in its study of the market that dealers want to see the whites of a car buyer’s eyes in the showroom, before going all out on pricing.

“The ACCC also understands that dealers will generally not offer their best price over the phone, and use phone calls as an opportunity to convince prospective purchasers to visit their dealership,” it said.

Country buyers travel much further than city dwellers, because of limited options. But people in metropolitan areas didn’t generally go further than 35 kilometres.

“Data provided by manufacturers show that the majority of their customers travel less than 35 kilometres to purchase a new car, although they do travel further in non-metropolitan areas.”

The submissions made by various players to the ACCC ”suggest that pricing for new cars is opaque”.

“While the manufacturers’ RRPs are transparent, submissions were consistent that virtually no cars are sold at this price,” the ACCC said.

“Prices are almost always discounted and the extent of the discount appears to be dependent on a range of factors and variables.”

The ACCC found that consumers now generally only visit one to two dealers before making a purchase. But it found that many dealer groups used the names of the previous owner of a dealership on signage, ”creating the illusion of separate ownership and competition”…