Looking for a car upgrade? Now's the time! Here’s why the used car market is seeing prices drop dramatically
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Buying a car in Australia has been a rather challenging endeavour over the past couple of years, with supply shortages leaving many of us turning to second-hand car dealerships for our vehicular needs.
But if you’re in the market for a vehicle upgrade right now, you chose a great time to do so.
After peaking last year, used vehicle prices have now fallen about 13 per cent – giving customers a chance to snap up a great bargain.
People’s love affairs with used vehicles led to quite a price surge due to supply issues, with previously owned cars commanding prices that climbed 20 to 30 per cent during the height of the pandemic.
However, we have good news, members: it appears that those inflated costs are finally beginning to drop, giving you a great opportunity to snatch a bargain.
According to recent reports from the automotive news site Drive, used vehicle prices in Australia will continue to fall in the coming months.
James Ward, Director of Content at Drive, said: ‘The used car landscape, especially the new car landscape, is probably as healthy as it has been for the last three years.’
‘During the pandemic, it was crazy, and we saw used car prices rise 20 to 30 per cent, purely because there were no new options,’ he added.
So, why are used car prices dropping now? Well, supply and demand are playing a crucial role.
‘There was a shortage and lack of supply, but now they are being largely resolved. There's an increase in supply and lack of demand,’ explained Ari Herzog, CarCity Property Manager.
According to Mr Herzog, they were seeing a fall across both of their locations in Melbourne and Sydney.
‘It's certainly come down a lot as compared to during COVID-19,’ he told reporters.
As SUVs are the most popular type of vehicle in Australia, it's no surprise that the prices of three-year-old Mazda CX-8s and CX-9s have decreased by almost a quarter. This currently makes them some of the best high-value vehicles on the market.
Skoda Kodiaqs, Hyundai Palisades, and Mitsubishi Outlanders have also experienced significant price drops of around 23 per cent.
However, it's worth noting that some brands seem to resist this price-deflating trend. For example, data shows that the value of a three-year-old Toyota Kluger has even increased by 1.7 per cent.
'That is sort of unheard of in the automotive world,’ Mr Ward noted.
As some of our members may be contemplating buying a used vehicle in the near future, we want you to be aware of the factors to consider before making that purchase.
One essential element is the remaining factory car warranty. Mr Ward explained that brands like Mazda and Kia offer warranties of five or even seven years, so finding a used car with two to four years left on its factory warranty can be great news.
That said, if you're considering upgrading your vehicle or looking for a new addition to your garage, now just might be the perfect time to explore the Australian used car market.
With prices on a downward trajectory and supply levels returning to normal, you could find yourself behind the wheel of a fantastic bargain. But don't forget to do your research and inspect the cars carefully to make sure you're making a wise investment.
First, try to understand the condition of the used car by inspecting the exterior and interior, as well as taking it for a test drive to make sure all of its parts are working properly and that there are no mechanical issues.
Another suggestion is to get a vehicle history report, so you can be sure that the car is not stolen or was previously involved in an accident.
Do you have any other tips for finding the perfect used car? Share your stories and words of wisdom below. We would love to hear them!
But if you’re in the market for a vehicle upgrade right now, you chose a great time to do so.
After peaking last year, used vehicle prices have now fallen about 13 per cent – giving customers a chance to snap up a great bargain.
People’s love affairs with used vehicles led to quite a price surge due to supply issues, with previously owned cars commanding prices that climbed 20 to 30 per cent during the height of the pandemic.
However, we have good news, members: it appears that those inflated costs are finally beginning to drop, giving you a great opportunity to snatch a bargain.
Now’s your chance to get a nice car for less. Credit: Pixabay/Pexels
According to recent reports from the automotive news site Drive, used vehicle prices in Australia will continue to fall in the coming months.
James Ward, Director of Content at Drive, said: ‘The used car landscape, especially the new car landscape, is probably as healthy as it has been for the last three years.’
‘During the pandemic, it was crazy, and we saw used car prices rise 20 to 30 per cent, purely because there were no new options,’ he added.
So, why are used car prices dropping now? Well, supply and demand are playing a crucial role.
‘There was a shortage and lack of supply, but now they are being largely resolved. There's an increase in supply and lack of demand,’ explained Ari Herzog, CarCity Property Manager.
Supply issues have been resolved, contributing to the drop in car prices. Credit: jay pizzle/Pexels
According to Mr Herzog, they were seeing a fall across both of their locations in Melbourne and Sydney.
‘It's certainly come down a lot as compared to during COVID-19,’ he told reporters.
As SUVs are the most popular type of vehicle in Australia, it's no surprise that the prices of three-year-old Mazda CX-8s and CX-9s have decreased by almost a quarter. This currently makes them some of the best high-value vehicles on the market.
Skoda Kodiaqs, Hyundai Palisades, and Mitsubishi Outlanders have also experienced significant price drops of around 23 per cent.
However, it's worth noting that some brands seem to resist this price-deflating trend. For example, data shows that the value of a three-year-old Toyota Kluger has even increased by 1.7 per cent.
'That is sort of unheard of in the automotive world,’ Mr Ward noted.
As some of our members may be contemplating buying a used vehicle in the near future, we want you to be aware of the factors to consider before making that purchase.
One essential element is the remaining factory car warranty. Mr Ward explained that brands like Mazda and Kia offer warranties of five or even seven years, so finding a used car with two to four years left on its factory warranty can be great news.
That said, if you're considering upgrading your vehicle or looking for a new addition to your garage, now just might be the perfect time to explore the Australian used car market.
With prices on a downward trajectory and supply levels returning to normal, you could find yourself behind the wheel of a fantastic bargain. But don't forget to do your research and inspect the cars carefully to make sure you're making a wise investment.
First, try to understand the condition of the used car by inspecting the exterior and interior, as well as taking it for a test drive to make sure all of its parts are working properly and that there are no mechanical issues.
Another suggestion is to get a vehicle history report, so you can be sure that the car is not stolen or was previously involved in an accident.
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