Car dealerships say there won't be a fire sale on used cars despite an over-supply triggered by COVID-19

Driven deputy editor David Linklater says rental companies alone have tens of thousands of cars to offload - that are just sitting in their yards.

He says this could see prices drop by 30 per cent.

But Andrew Simms Dealer principal Matthew Wales says low supply before COVID-19, and lower import numbers, will keep that from happening.

He says it's unlikely those cars will just be dumped on the market.

Wales says it may be better for rental car companies to hang on to cars than let them go too cheap.