As prices for some used models soar, more and more Australians are selling their vehicles in an effort to relieve the burden of rising living expenses.
If you own an Audi RS7, Mercedes G, or Toyota Hilux, you could be sitting on a gold mine because secondhand car prices have increased by an astounding 79% since the pandemic began.
From $29,000 in June 2021 to $68,500 in June 2022, the price of the 2021 Hilux has climbed by an astounding 136%.
Some people are realising that the secret to financial stability could lie in their garage because Australia’s inflation rate is currently 6.1%, the highest level in twenty years.
According to census statistics from 2021, 55.1% of Australian families have two or more cars, while some are already getting rid of their second automobile while others are doing away with all of them.
Milli Ogden, who is grappling with rising prices and saving for her wedding, is one of those who has decided to sell their only vehicle.
Many people are discovering that selling their second car can increase their financial freedom by reducing day-to-day operating expenses including maintenance, registration, insurance, and fuel. Inflation is still on the rise.
The price that Australians can anticipate to receive for their used automobile and tips on how to take advantage of the rapidly rising prices of used cars have been disclosed by the car sales website Gumtree Cars.
The top sellers are the Audi RS7 ($104k), HSV GTSR ($184k), Mercedes G ($241k), RAM Ute ($121k), Volkswagen CC ($68k), and Range Rover Velar ($120k), according to the website’s list of the most valuable make-models in each category for 2022.
Gumtree discovered that newer vehicles had experienced the greatest price hikes, with 2021 models increasing by 11% overall compared to 2020 vehicles, which jumped by 7% between June 21 and June 22.
Hatchback prices climbed dramatically by 40%, from an average of $21,499 to $30,000, but coupe prices increased by 96 times as much, from $36,650 to $72,000.
Although Utes as a whole didn’t do as well, they still rose by 12% from $59,900 to $67,000, and some models jumped astronomically.
The 2021 Toyota Hilux experienced the largest year-over-year gain between June 2021 and June 2022, rising 136% from $29,000 to $68,500.
In the same time frame, the 2021 Toyota Landcruiser Prado jumped by 99%, from $41,500 to $82,500, while the 2021 Toyota Rav4 increased by 34%, from $42,500 to $57,000.
The price of an older vehicle, the 2020 Nissan Navara, rose from $42,500 in June 2021 to $56,000 in June 2022, a 32% rise.
whenever it makes financial sense to sell your car
In 2020, Milli Ogden, 34, relocated to Surry Hills in central Sydney and encountered parking issues.
Without a permit, she frequently received parking fines, and having to relocate her car every few hours became a major inconvenience.
She had always believed that she required a car because she had grown up in the country, so she was hesitant to go without one for an extended period of time.
But after the epidemic, she began to notice that her car would idle for days on end, and she grew tired of having to pay for the vehicle’s upkeep fees, including insurance, fuel, and pink and green slips when she wasn’t driving it as frequently.
She observed the second-hand automobile market was booming a year ago, so she made the tough decision to post her car on Gumtree Cars and try living without a car for six months.
After a year, she is still content with her choice and has not purchased a new vehicle.
Ms. Ogden claimed that she has been able to save significantly more as a result of not owning a car, which has allowed her to take a couple vacations and put money down for her wedding.
She rents a car when she needs one for longer distances or weekend vacations.
She admitted that, despite her initial concerns, not having a car hasn’t left her feeling restricted and that she can get around just fine utilising public transportation or ride-sharing services.