‘It’s bananas’: How to navigate buying and selling in a never-before-seen car market – 9News
Used cars are being turned over for the highest prices ever seen in Australia as the global car industry continues to rebound from its biggest disruption yet.
With prices continuing to climb, used cars cost 65 per cent more in the first three months of this year than they did in 2019, and 18 per cent more than they did at the end of 2021, according to data from Moody’s Analytics.
Some drivers are managing to sell used cars for almost as much as they bought them for years earlier, while others are paying new-car prices for well-worn vehicles.
Dan Baxter sold his ute for $1500 less than what he bought it for eight years earlier. (Nine)
“We’ve never seen anything like this,” director of content at Drive James Ward said.
“You’ve got ridiculous waitlists on even regular cars, 12- to 18-month wait-times.
“And seeing used cars actually go up in value is also something we’ve never, ever seen.
“In many cases, you’re able to sell a car that’s 18 months old for basically what you paid for it.”
Ward said certain types of cars, such as the highly sought-after Suzuki Jimny, were going for even more extraordinary prices.
He said the small four-wheel-drives were listed as worth $30,000 second-hand but had been advertised in many places as for sale at close to $50,000.
Dan Baxter, from in Ballarat in Victoria’s west, sold his ute on Facebook in February for only $1500 less than he had bought it for eight years earlier.
“I bought the 2008 Toyota Hilux in 2014 for $22,000 with 170,000km. I sold it in February 2022 for $20,500 with 225,000km,” he said.
Used cars are in high demand. (AFR)
The father believes he could have had someone pay even more for his ute if he had made more effort with the sale.
“However, to only lose $1500 on a car across eight years is pretty good,” he said.
The unprecedented prices paid on the used car market begs the questions, should people sell their cars now? And what should they do if they need to buy?
We asked Ward for his expert advice on the situation.
Why are used cars going for such high prices?
Used cars are being sold for such high prices because there is a greater global shortage of new cars than there has ever been before.
In short, the lack of cars was created because car manufacturers stopped ordering as many car parts when the COVID-19 pandemic hit, thinking sales would slow down.
However, demand for cars actually increased because people had more money to spend on cars during the pandemic, being unable to travel or spend on usual activities.
“So there was a huge amount of demand for cars and a slowdown in production,” Ward said.
The rush of people having babies during the pandemic also led to more people needing to get a new car to upsize.
Matthew, who lives near Caroline Springs, was left in exactly that situation.
“We needed to get a bigger …….