Used Car Prices Index up by 36% in a Year

Looks like it’s getting harder to get a used car bargain based on this report.
Ford Ranger and Outlander topping the list.

“The Datium Insights-Moody’s Analytics Used Vehicle Price Index “increased by 35.8 per cent on a year-ago basis in January. This is the highest rate for a series that goes back to 1999. Car prices rose by 33.2 per cent, while truck prices increased by 41.8 per cent. Vehicle retention value, measured as price/MSRP, rose by 34.2 per cent compared with a year earlier. The car component increased by 31.1 per cent and the truck component rose by 39.3 per cent.”
 Datium Insights have reported the following results for the past week:
 “Prices increased in the first week of February (+4 per cent) with ex-Government cars (+9.2 per cent) leading
the increases
 Supply was largely flat (+1 per cent) with stock still below par
 Clearance rates saw a strong increase (+6.4 per cent) with ex-Council vehicles performing well
 Prices for the top 15 traded vehicles were largely positive with the Ford Ranger (+4.7 per cent) and Mitsubishi Outlander (+3.9 per cent) leading increases”

Comments

  •  

    Nothing new here.
    Covid saw many production plants close down
    Also increased savings via staying at home/not holidaying/jobseeker/keeper.

    It's a classic case of short term inflation along with demand and supply.

    Don't worry in 3-6 months everything will have returned to normal and anyone buying an inflated car today will be throwing their money onto a metaphorical fire.

    Cars other than large 4wd's are already returning to their baseline.

    • +3 votes

      Not to mention people commuting via car in fear of getting COVID-19 from catching public transport and rushing out to buy one

      •  

        and the examples of people getting COVID19 from public transport are? My question is not an excuse to NOT wear a mask in public. It is good hygiene.

        • +1 vote

          in fear of

          I agree with you about mask wearing on public transport and am glad it's still compulsory here in NSW.

          It's the same with toilet paper; always sells out every time a city-wide lockdown is announced

    • +2 votes

      already returning to their baseline

      Then why is report saying 4% increase in first week of February?

      •  

        A couple of things to note,
        Firstly if you look at Perth (my market) i can confirm that things are definitely settling down. Can confidently say prices are definitely down on December last year.

        Secondly i believe it's the wholesale used-car market as dealerships still compete to fight for what stock is available to aid their bottom line (not representative of the market as a whole) which may be propping up the market, private sales don't seem to be as buoyant.

        Having said that car's values are only worth what people are prepared to pay for them, once you take into the fact that Australia as a nation is still in record levels of household debt, cars are still technically depreciating at the same rate as usual it becomes apparent that people are in a similar position economically - pre covid (back when Australia was - and still technically should be) in a recession.

    • +1 vote

      Don't worry in 3-6 months everything will have returned to normal and anyone buying an inflated car today will be throwing their money onto a metaphorical fire.

      We love it. You know having 5 year of toilet paper, 3 years of dry pasta, 2 years of canned food. Old car that is more expensive than a new car. House prices that might go up 20%.

      All the money spent not going on holidays and staying at home gone. Then when you want to go on a holiday you have no money.

      Sounds like that lifestyle inflation we were talking about…

      •  

        Definitely on the same wavelength as you on this one.

    •  

      No doubt it will eventually settle down as new vehicle supplies return to normal. One of the reasons given for the short supply is the shortage of semiconductors for car manufacturers.

    • +3 votes

      Don't worry in 3-6 months everything will have returned to normal

      That's what everyone said in April… May… June… July… August… etc.

      •  

        And in Perth we've closed the gap considerably.
        It's definitely not the 20-30% hike that has been pushed around in the press anymore

  •  

    Doh. That's another of my shorts gone south.

    •  

      Need a tighter belt?

    •  

      Maybe everyone accidently invested in GMC instead of GME.

  • +1 vote

    Can sell my cars for more than I bought them for. Just silly, whats left is either overpriced or plain garbage.

    • +1 vote

      Agreed, and if I was the kind of person who has 5 cars in the garage I would be selling now to rebuy in a year.
      That said, I’ve been on the lookout for a cheap car for the last 4 months, and prices did get more realistic in the last few weeks.
      I think the combination of xmas bills to pay and COVID worries dissipating freed up some cheap cars.

      If you are after a small, old manual, prices are back to Ok.
      Utes and 4wd still through the roof, due to extra road trip holidays etc.

      If you really need to buy now, watch gumtree/Facebook daily and go test drive with cash in hand. There are still a few people who list at pre-COVID prices, but the cars are sold same day.

      •  

        Luxo cars still fetching crazy prices, usually they're first to tank in price. Sold friend 118d recently, I'm use to selling a car in 6 weeks or so, sold in 5 days.

        Starting to see better trim levels at dealerships, last year only thing left was fleet vehicle cars on the lot (white base models) and the lots half full. Now they're getting stock and slight markup on new models. Good time to upgrade to a new car if you're a person that buys new.

        Holden prices make zero sense to me. Did people forget people didnt want these cars and thats why GM pulled out? Now they're suddenly asking collectors item prices for base model V6s

  • +2 votes

    I’ve never seen so many utes and 4wd with over 250000kms for sales for over $20k. It is absurd.
    10yro Triton with over 250k for $24500! Come on.
    https://www.gumtree.com.au/s-ad/faulconbridge/cars-vans-utes...

    • +2 votes

      4wd/Ute prices are a joke. I could sell my 2018 SR Hilux for the same price I brought it for. I was looking into getting a weekend car, that's out the door due to prices going up on Holden/Falcon V8 utes.

    •  

      Kilo of hammer in the glove box or something? Thats insane, these at auctions in 2019 barely low 10s

    •  

      I used to buy and sell bikes… and if you thought ute prices were crazy, bike prices are insane… Bikes that were $8~10k 14 months ago are now listed and quite readily selling for $14~18k.

      There are bikes out there that are 5~7 years old that are selling for $1~3k less than that they were worth new…

      on another forum I am on, a guy listed a bog stock Ducati 899, 2014 model… it was $19k new in 2014. His asking price was $16k. It literally sold that day with about 8 people all posting “pm sent” in the first hour of the ad going live…

      Not allowed out of the county, have to spend that jobkeeper, early super access and saved up Bali holiday money on something…

      •  

        Classic cars have gone up in prices as well. Before Covid, I would see 65/66 mustangs (lowest price) $30k. Now its close to $45k.

  •  

    Worst time in history to buy a used car

    On the flip side

    Best time in history to buy a new car

    •  

      Disagree.
      Low stock from manufacturer so there are fewer vehicles than buyers. No incentive for dealers to offer discounts as they don't have enough cars to sell.
      Plenty of new vehicles with many month delivery waits.

      Bad time to buy new or used.

      • +1 vote

        It's all relative. You can say it's a 'good time' to buy new, because many 19 or 20 plate vehicles are selling for the price of new.

        Not ideal paying retail for a car, sure, but everyone keeps saying they want fixed price sales…

  • +1 vote

    Boats and Caravans have also gone made. Bought my boat for 15k last year and I put it on gumtree to see what it would fetch. 3 offers over $25k within 24 hours…

  •  

    Hail in Canberra and Bushfires releasing heaps of insurance payouts (they couldn't be bothered repairing so they paid out more than they repaired). Covid19 overseas impacting production and fear of public transport…

  •  

    …. and??? Used cars are supply/demand pricing. Supply is low, demand is high prices are high.

  •  

    I've been trying to buy a car since January 2020 fml

    The one I am after is selling like hotcakes, been trying more seriously since December 2020 because Melbourne/lockdown etc