Good news for car buyers - used car prices in Australia are plummeting!
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Whether you're considering a novated lease or buying outright, purchasing a car is a major milestone in any person's life. But with used car prices in Australia finally starting to return to pre-pandemic levels, it's the perfect time to pounce and score a sweet deal.
According to a recent report from financial intelligence company Moody's Analytics, used car prices have been steadily declining for several months now as the secondhand market begins to regain some semblance of normality.
In fact, prices are now below where they were a year ago, though they're still 'significantly high' compared to the pre-pandemic period.
Despite this, there's no denying that prices are still a steal when compared to their peak in May of 2022. While used car prices have dropped by 12.5% since then, they're still a whopping 59% higher than they were in the same month of 2019.
Moody's Analytics expects that used car prices will continue to drop by 10% overall this year. However, this decline could be even more significant if the economy performs worse than expected, or if rising interest rates deter buyers from making big purchases.
To put it simply: January 2023 saw the first year-on-year decline in used car prices since May 2020. Prices dropped a further 0.4% from January, bringing the overall decrease compared to a year earlier to 2.1%.
New car or used car - which should I choose?
When it comes to purchasing a car, the decision to buy a new or used one can be tough. There are a lot of factors to consider, and ultimately, it comes down to personal preference and what makes the most sense for your situation.
If you're someone who wants the peace of mind that comes with a brand new car straight from the manufacturer, then buying new might be the way to go. With a new car, you can enjoy that fresh luxury feeling, knowing that you're the first owner and that the car is in pristine condition.
However, keep in mind that buying new often comes with a higher price tag, higher insurance rates, and faster depreciation.
On the other hand, if you're someone who loves a good deal and is willing to put in the time to find it, then buying used might be the better choice. By doing your research and inspecting each car carefully, you can potentially save thousands of dollars while still getting a car that's in great condition.
Plus, used cars often come with lower insurance rates and slower depreciation.
Ultimately, the decision to buy a new or used vehicle comes down to what you value most in a car. So do your research, weigh your options, and choose the option that's best for you.
If you're considering buying a used car, it's important to be aware of the potential scams that could come with it. While there are plenty of great deals to be found, there are also plenty of unscrupulous sellers who may try to take advantage of you.
One common scam is when sellers try to hide previous accidents or damage to the vehicle. This could affect the safety and performance of the car, and leave you with costly repairs down the road.
It's essential to inspect any used car you're interested in thoroughly and to get a vehicle history report to check for any past accidents or damage.
Unfortunately, there are also scammers out there who have no car to sell at all.
They may use convincing sales talk, dubious online payment schemes, or even create fake websites to try and scam buyers out of their money. It's important to be vigilant when shopping for a used car and to trust your instincts if something seems too good to be true.
This was the case with Mr Bardsley, a recent victim of a used car scam. To read the full story, go to this link.
Despite the risks, buying a used car can still be a smart choice - especially in the current economic climate. With inflation at its highest rate in 32 years, purchasing a used car at current prices could be a wise financial move.
Just make sure to do your research and be cautious when dealing with sellers. By taking your time and being thorough, you can find a great deal on a used car without falling victim to a scam. And who knows, you may even end up with a car that's better than you ever imagined!
So what do you think, folks? And have you ever bought a car before? If so, tell us about your experience in the comments below. If not, what has been holding you back? What tips do you have for securing a good deal? Share your thoughts with us here in the SDC community!
According to a recent report from financial intelligence company Moody's Analytics, used car prices have been steadily declining for several months now as the secondhand market begins to regain some semblance of normality.
In fact, prices are now below where they were a year ago, though they're still 'significantly high' compared to the pre-pandemic period.
Despite this, there's no denying that prices are still a steal when compared to their peak in May of 2022. While used car prices have dropped by 12.5% since then, they're still a whopping 59% higher than they were in the same month of 2019.
If you've been thinking about buying your own set of wheels, now is the time to make your move. Credit: Unsplash/Youssef D.
Moody's Analytics expects that used car prices will continue to drop by 10% overall this year. However, this decline could be even more significant if the economy performs worse than expected, or if rising interest rates deter buyers from making big purchases.
To put it simply: January 2023 saw the first year-on-year decline in used car prices since May 2020. Prices dropped a further 0.4% from January, bringing the overall decrease compared to a year earlier to 2.1%.
New car or used car - which should I choose?
When it comes to purchasing a car, the decision to buy a new or used one can be tough. There are a lot of factors to consider, and ultimately, it comes down to personal preference and what makes the most sense for your situation.
If you're someone who wants the peace of mind that comes with a brand new car straight from the manufacturer, then buying new might be the way to go. With a new car, you can enjoy that fresh luxury feeling, knowing that you're the first owner and that the car is in pristine condition.
However, keep in mind that buying new often comes with a higher price tag, higher insurance rates, and faster depreciation.
On the other hand, if you're someone who loves a good deal and is willing to put in the time to find it, then buying used might be the better choice. By doing your research and inspecting each car carefully, you can potentially save thousands of dollars while still getting a car that's in great condition.
Plus, used cars often come with lower insurance rates and slower depreciation.
Ultimately, the decision to buy a new or used vehicle comes down to what you value most in a car. So do your research, weigh your options, and choose the option that's best for you.
After a tumultuous rise over the past year, used car prices are finally falling. Credit: Unsplash/Rolando Garrido.
If you're considering buying a used car, it's important to be aware of the potential scams that could come with it. While there are plenty of great deals to be found, there are also plenty of unscrupulous sellers who may try to take advantage of you.
One common scam is when sellers try to hide previous accidents or damage to the vehicle. This could affect the safety and performance of the car, and leave you with costly repairs down the road.
It's essential to inspect any used car you're interested in thoroughly and to get a vehicle history report to check for any past accidents or damage.
Unfortunately, there are also scammers out there who have no car to sell at all.
They may use convincing sales talk, dubious online payment schemes, or even create fake websites to try and scam buyers out of their money. It's important to be vigilant when shopping for a used car and to trust your instincts if something seems too good to be true.
This was the case with Mr Bardsley, a recent victim of a used car scam. To read the full story, go to this link.
Before you start shopping, make sure you do your research and compare different models on the market. Credit: Unsplash/DocuSign.
Despite the risks, buying a used car can still be a smart choice - especially in the current economic climate. With inflation at its highest rate in 32 years, purchasing a used car at current prices could be a wise financial move.
Just make sure to do your research and be cautious when dealing with sellers. By taking your time and being thorough, you can find a great deal on a used car without falling victim to a scam. And who knows, you may even end up with a car that's better than you ever imagined!
So what do you think, folks? And have you ever bought a car before? If so, tell us about your experience in the comments below. If not, what has been holding you back? What tips do you have for securing a good deal? Share your thoughts with us here in the SDC community!
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