Due to Covid plant lockdowns and a worldwide scarcity of computer chips, the used automobile market has flourished, with some vehicles now fetching 60% more than they were three years ago.
Customers don’t willing to wait months for a brand-new vehicle, so Australians with dependable little cars, robust four-wheel drives, or quick V8s may sell their vehicles for tens of thousands more.
Approximately 60% more expensive than it was in 2019, the 2010 Holden Commodore SSV is now worth $30,500.
According to statistics from Carsales given to Daily Mail Australia, the 2010 Holden Commodore SSV, which comes equipped with a six-liter V8, has won the prize for the most median price rise.
With vendors often asking over $30,500 for the 12-year-old model, the car’s value has increased by almost 60% since 2019.
The Commodores acquired a collectible-like status in 2021 when brand-owner General Motors reduced manufacture of Holden cars, according to Carsales Editor-in-Chief Mike Sinclair.
He said that no one was currently producing the automobile.
Australians are rushing to buy it because it is enjoyable to drive and has a V8 engine.
At $23,500, the 2017 Toyota Corolla Ascent is now worth nearly 40% more than it was in 2019.
The 1999 Toyota Landcruiser GXL, which is 23 years old, is now worth $21,500 as opposed to merely $13,500 in 2019.
Customers will have to wait 280 days to drive their new vehicle, 22% longer than three months ago. A brand-new Landcruiser GXL costs around $75,000.
Similarly, the value of the Toyota 2008 Hilux SR has increased by 50% since 2019; the used vehicle is now worth $22,500 compared to its brand-new cousin, which costs roughly $48,000 and requires a 150-day wait.
Australians don’t only want better automobiles, according to James Ward, Director of Content at Drive, which is a major factor pushing higher pricing. They need them right now.
The second-highest price increase between 2019 and 2022 was for 1999 Toyota Landcruiser GXLs, with used cars fetching $21,500.
“New automobile production has stopped, and there is a huge backlog of orders,” he stated.
“When it’s almost difficult to get the new automobile you desire, used car dealers have the power.”
People started taking road trips as soon as state boundaries opened up because they wanted to go on vacation.
“They have a need and they want it quickly. For that, they require an adventure-focused vehicle with strong towing capability.”
According to Mr. Ward, the cost of Hyundai i30s has also skyrocketed, with vehicles that cost $33,950 when they were brand-new in 2017 now only being worth $31,950.
The sudden shift in demand for electric cars, which has seen the price of used Tesla Model 3s soar by $20,000, is one peculiar move in the market that Mr. Ward noted.
Currently, people are paying $85,000 for used Model 3 vehicles while brand-new ones cost $65,500.
He said that instead of waiting 18 months for a new Tesla, “people are looking at the spike in the price of petrol and preferring to pay an additional $20,000 to acquire one immediately.”
It’s absurd! Even if you drove erratically for 18 months in a sports vehicle with a V8 engine, you wouldn’t burn that much money on petrol.
By saving money on gasoline, “you’ll never be able to recuperate the increased expense.”
Customers are choosing to pay an additional $20,000 to purchase used electric cars now rather than waiting 18 months with high gasoline costs, according to Drive’s director of content James Ward.
He said that the Toyota Landcruiser GX 70 series, which retails for $73,000 when purchased new from dealerships but costs $103,000 when purchased used, had a similar tale.
The 2017 Ford Mustang GT is valued roughly $13,000 more than in 2019 at $60,990, while the 2017 Toyota Corolla Ascent is worth $6,500 more at $23,500, according to the Carsales statistics.
The most important cause of the lengthy wait times for new automobiles, according to Mr. Sinclair, is a worldwide lack of computer chips.
Despite only costing $73,000 new from dealerships, Toyota Landcruiser GX 70 series are selling for $103,000 on used markets because of extended waitlists.
In the automobile business, “chip shortages have been a persistent problem, primarily because to the pandemic but also because each vehicle now needs more chips,” he added.
Every extra function in the automobile requires a computer, including heated seats and adjustable mirrors.
“Car makers are merely entering the line” since there are currently not enough chips.
Production businesses, according to Mr. Sinclair, are operating with fewer employees and often at a slower rate as a result of global social distance policies.
Second-hand Tesla Model 3s are reportedly selling for $20,000 more than new vehicles because customers are keen to skip long waitlists
The graph up above displays a variety of automobiles’ median values, or how much they cost to purchase new and how much they sell for used.
“Vehicles are built on production lines, so if you split individuals due to distance restrictions those personnel can’t accomplish as much at the one station and fewer cars are being created,” he added.
Because Australia no longer produces automobiles, we are subject to the vagaries of global laws.
During the epidemic, he said, more Australians chose to drive instead of using public transportation.
Australia chose to resume driving after Covid, he said.
We aren’t replacing the family’s automobiles; rather, we are adding to it.
The used automobile market is becoming more competitive as the supply of new cars decreases and there are fewer cars available overall.