Car buyers are steering clear of new vehicles and intead being savvy in buying used vehicles, according to the head of Australia's biggest car dealership group after it recorded a $233 million loss for the last financial year.

John McConnell, chief executive of Automotive Holdings Group (AHG), echoed the sentiments of others in blaming the banking royal commission, a flailing national housing market and "broader economic uncertainty" for repelling consumers from shelling out for new cars.

New car sales fell to their lowest level in eight years in July. Credit:Nicholas Walker

"If we look at our total results in FY19, we saw private buyer retail drop by 5.4 per cent in volume terms. Our used car sales, over a period which was pretty tough, actually went up by 3.6 per cent," he said.

"You’re seeing at a consumer level some substitution between buyers that would otherwise have been looking for new cars, into used."