Examples of Covid Car Price Inflation

Share some examples you've seen of inflation in the car market thanks to covid! I'm keen to hear - especially sales price not just list price. I'm not in the market for a new or used car right now but I keep my eye on things…

My best example is low kms Suzuki Jimnys up for sale for nearly $50k. Hilux money!

Comments

  • +10

    Suzuki Jimnys are in high demand. Few articles about it.

    If you buy new, unless there is ridiculous demand like RAV4 hybrid then you would be able to get some discounts or even stock on hand to drive away.

    Second hand market, there is inflation especially (future) collectables. Given the situation with travel I am not sure where people are thinking they are driving to? When everyone is off public transport stuck in their cars, public transport might be the safest place.

    • RAV4 Hybrid demand must of dropped off a bit.
      2 friends had orders in.. one was May and one was Feb delivery.

      Feb guy got his call to come get his car in October and the May order is got it early Jan.

      one of the dealers told him they had a lot of orders cancelled.

      • +2

        was still a 5 month wait when I enquired in early Jan.

      • +1

        I ordered in November. The dealer gave us some story about how he could get us the car a month earlier which would be late Feb or early March. I emailed him the other day to get exact date and was told it now can't be delivered until early April. So his whole story about getting it for us sooner was a lie.

        • +1

          Yeah when i got my car, my dealer warned me about other dealers doing this trick. When we made my order I was assigned a specific car that was already on the water, so although it was a 5 week wait or whatever it did come when they said.

          • @modiika: The thing is we still would have gone with this dealer because the other dealer we were talking to was saying 9+ month wait because of the colour of leather we wanted. Also they had some aftermarket options that the other dealer didn't have.

        • +3

          @geoff-bargain :

          " his whole story about getting (insert any promise here) was a lie."

          …That's what happens when you speak to a car dealer

        • his whole story about getting it for us sooner was a lie.

          Just expect it is all a lie except for the money you are required to hand over. Everything that isn't published / written they could take out.

        • Placed an order today for one. Have quoted a 4 month wait.

      • one of the dealers told him they had a lot of orders cancelled.

        Gone to buy inflated second hand so they can drive somewhere in summer when the borders open. We know how that went.

    • +2

      Jimny’s waiting list was a year way before COVID hit their pre-order wait time was a year and now with COVID shutting down factories it is even longer.

      • Of course- but 50k is still crazy. Who is so desperate they'd throw away 15k instead of wait?

      • +2

        EU banned the jimney in a bunch of countries due to emissions, most likely helped aus get more . Only know this due to Matt Watson jimney videos, gotta love carwow

        • +1

          IIRC, 10-2020 TG issue mentioned that, and the decision by Suzuki to sell a Jimny-based "van" instead. Takes advantage of an emissions loophole apparently.

    • +1

      @MightyCarMods

    • Buy one from NZ and ship it accross, save $20k!

  • +2

    My best example is low kms Suzuki Jimnys up for sale for nearly $50k. Hilux money!

    Well the Jimny is expensive anyway and at the moment very hard to get hold of and at the same time quite desirable.

    • +2

      Oh I know the rationale. It's just insane to imagine paying that much for a jimny.

      • I assume this is the car?

        • I think I saw a blue one? But similar enough. Of course there are added values in tires, billboard etc. But in my experience accessories and mods don't add all that much to the sale price and can sometimes detract from it.

        • +3

          He says:
          "I get asked all the time about how good it is, even going as far to have Patrol and Jeep owners bow humbly to the might of the Jimny!!!"

          Somehow I find that hard to believe…..

          • +1

            @Gaz1: You'd be surprised - agility and light weight can help you get places massive patrols might not be able to. A wrangler though I'm less convinced… They're not heaps bigger than the suzuki.

  • +11

    Prados, Landcruisers, Rangers, Hiluxes.

    Pre-covid 2011/12 prados could be had for $14-$15k with moderate km's
    post covid they're pretty much double that.

    Had my eye on one, now i do not.

    • +3

      It's amazing. 10 year old Prado with 200,000km for only 30% less than new!

      There's practically no Fortuners under $30k!

      • +1

        I’ve seen tunas selling with more km on them than mine, for more than I paid brand new!

        • +1

          Bought a 2017 Crusade in absolutely pristine condition 50K ODO for $45K 1.5 years ago. Now I see 2018 selling for $55K and 2017 for $50K

    • +1

      Never seen one this cheap and I am constantly looking. The cheapest I ever saw on carsales pre-covid were 2009 / 2010 v6 models for around the 20-25k range.Would of bought one if i could get one for 15k.

      • +1

        There were diesel ones with around 200k for 20-22k but have never seen at 15k either

      • +1

        Definitely in Perth 250,000km prados (off mines) but well set up with upgraded bulbar, suspension etc, were as low as $13k if you looked well enough. If you wanted a pristine one then ~$18k would get you that.

    • Everyone is gearing up to run off into the mountains. Unfortunately when you run into another group and they have the virus and you contract it there is no hope they will send a helicopter for you in deep bush because even if they get you to a hospital it is full.

      People have an interesting logic to things. Next big thing is cars will become an investment. With borders closing (to Victoria) I can see a lot of garaged cars appreciating. At least that is what the owners think.

  • +8

    I found this mint 2003 Mazda MX-5 pre-covid selling for $5,000. Now similar examples are selling for $15,000. I could have tripled my money within around a 12 month window….sigh.

    • +1

      people who are thinking about the money they can make are also what drives the prices up

    • +8

      MX5s don't go for $5000 though so that's more of a fringe case.

      • how much do they usually go for?

      • +1

        Precovid there were poorer NA examples going for 5k and under, usually at least one or two australia wide, and if you spent 6k on an NA mx5 you were getting something decent. Now there's nothing under 5k and ones that were 6k are going for 9k at least

        The other cars I notice going for more are second hand v8 caprice and statesmen, there were neat 2003 examples that were going to 3-4k, nothing under 6 last I checked. As I'm looking for something older to tool on and as a weekend car/future classic I'm completely out of the market now

        • +3

          Now you know how much Australians spend on holidays every year. It is going into basically everything else. People can't seem to keep their fingers from their stash of cash.

          • +2

            @netjock: We are really addicted to spending, it's a pandemic that underlies modern society. Everyone complains how expensive things are, and about how much they are taxed, but their pay has gone up and everything aside from housing is relatively cheaper. If I hear one more person can't save a deposit on a house but they go overseas twice a year for holidays since they were 18 I'm going to face palm

    • +4

      I doubt it's 'mint' condition for $5000

      • +4

        A well rotted mint.

      • Agreed, can’t see any way you’d be getting even an average 2003 for $5k now or pre-COVID.

  • +8

    Jimny likely also has a bit of Mighty Car Mods fan attention now and was already a desirable car (both old and new) with new struggling for supply.

    JDM imports have gone crazy, a few importers have stopped bothering with GTRs and the like as they are now either trashed or worth more than the average enthusiast could pay.

    • +2

      has always been my childhood dream to own a 90s-00s japanese sportscar like an honda integra type r ,Civic type r and mx5 however with the prices as crazy as they are its probably not attainable :(.

      • +14

        Drive them, seriously, they're not as good as the hype. Modern cars are better.

        • my friend has a NB mx5 and honestly it exceed expectations! having said that i drove the ND and it was far better.
          It just sucks to see prices so high when i knew i couldve got one for around 5-7k a few years back…

          • +2

            @t2kb123: I found them uncomfortable and slow tbh. it would be good at $5K but now its a $15K, same with all of these JDM cars, need to judge based on current price. Honestly they're shitboxes for price people are asking now, there are many modern underrated cars that would be so much better than these 20-30 year old cars.

            I was looking at 2 door STIs as a project, now they're tipping $100K for one. Ive driven them, compared to a brand new one at half the drive, I can firmly say its a overpriced shitbox and I'm a huge Subaru fan.

  • +1

    Kia Stinger GT, seen a easy $10K-$15K jump in price.

    Made a bid last year on one at auctions that would pretty much guarantee me getting it in 2019. 2020, pfft 7K short

    My two cars STI and Kia Proceed, both $10K more now than what I bought them for 2 and 1 year ago.

    • +1

      Fellow proceed owner too. They went up in value? It looks to be around the same to me. Dropping in a few grand ever year.

    • What are you talking about?

      A quick Carsales search doesn’t show a pro_cee’d of any sort for more than $19k, you expect us to believe you paid $9k a year ago?

  • My best example is low kms Suzuki Jimnys up for sale for nearly $50k. Hilux money!

    Supply demand…. low supply of the Jimny, but huge demand. Means prices go up!

    • +5

      Lmao yes I understand the causes. I am simply shocked at the result!

      • -4

        Brains = short supply

    • But there is substitutes. If you want to get from A to B. If you want to have specific leather on your first class seat that only a specific airline has then you are locked in.

      People have no brains and memories are short. Some people can't even google and answer before talking alternative facts. It is bonkers in the age of more and easy to attain information people are making more misinformed decisions.

  • +1

    Are people actually buying these vehicles at the inflated prices?

    • +1

      I sure hope not lmao. Very happy with my old subywagon myself tbh!

    • no

    • Yes, otherwise they wouldn't be on the market for that price

      • Thats not how the market works. Less stock of used cars entering the market = only the overpriced ads are still available

        • Nope, there are definitely new ads all the time.

    • Jimny's yes.
      As a fan I set an alert for low km's (<500) jimny on car sales.
      In last month I have seen 5 sell in Sydney area.
      Asking price on all was between $38k and $41k.
      Selling price (if you wait) for a manual currently $32k

  • +1

    Was looking for new midlevel SUV around $36k . Pre-covid you could bargain and get it for $34k.Now its $40k and no bargaining.Thats like a 20% hike in prices.

  • +1

    My best example is low kms Suzuki Jimnys up for sale for nearly $50k.

    advertising for that price and selling for that price are 2 different things… Nobody in their right mind would pay 50k for one of them.

  • +1

    I've heard of these price hikes but haven't really looked into how it would affect me in a new purchase.
    Im looking to buy a new cheapish car (eg hyundai / kia , sub 20-25k price range) - would i be paying more for it now or do the price hikes not apply to lower range vehicles ? Im not in a hurry so if i'll save $$ by waiting.

    • +1

      I am not in a hurry as well to buy new suv.But how long to wait? It could be 2022 before prices come back down.

      • I guess the more people hold off on the extortionate prices the quicker they come down.
        But some people don't have the financial control for this. Emotions > Sense
        Same reason why houses won't retreat.

    • Yeah it effects low end cars too. The discounts on new cars in that price range are less significant so may be less of a big deal.

      I feel the supply of new cars is returning to normal, but demand is still higher than you'd expect because there's so few second hand cars available (I think30-40% less than a year ago) so demand remains high and dealers aren't negotiating much. That being said some models are more popular than others, so the less popular models/ dealers theres quite a bit of room, particularly if you can wait on delivery. I found Mazda in November were very keen to do a deal, and were offering 10% off with only a little pushing.

      I think target dealers near end of month. I saw a Mitsubishi dealer selling a top spec new (non-demo) ASX (Exceed) for 28.5 drive away, the list price was like 37 because they were so eager to get a sale for end of month. I called back 3 days later and it had gone.

      • What is your feeling based on?

    • It's not a big difference for new cars in my experience. In 20-25k, maybe you'll be down 1-2k compared to precovid? It's not bad compared to the insane markup in used.

      Good time to buy new!

  • +6

    Bought a new 2018 MQ GLS Auto Triton for $36k DA in June 2019. Cheapest on carsales now has nearly 100,000km for $39k plus on road costs.

    • That is deadset ridiculous.

      • +1

        Agreed. Even older MQ models are hovering around $30k for ~150k-200k kms and $30k-$35k for ~50k-150k kms.

  • +1

    Anyone have any experience with covid-era new build-to-order vehicles? Are dealers discounting? I'm talking like luxury end of the spectrum.

  • +6

    Bought MX-5 ND few years ago and sold it in Dec 2020 for roughly what I bought it for. - That's with me putting an extra 40,000 kms on it.
    Good time to sell - bad time to buy.

    • I've been following ND MX5s closely.

      Feb 2020 you could pick up a 2015 2.0 GT Manual for about $23-24k or so. At one point they were as high as $32-33k for the same thing.

      Coming back down now. Cars are changing hands for 26 or so

      • Looking at a 2016 2.0GT for $25k km's are a bit higher (80k) but in good condition.

  • +11

    Prices are up in AU anyway due to demise of Falcon and Commy.

    Every year the new car prices go up too. 5% this year on most brands easy.

    Not sure how we went from $600K average house and $30-40K average car, to $1M house and $50-60K car average - on the same salaries, in a few years.

    • +7

      Not sure how we went from $600K average house and $30-40K average car, to $1M house and $50-60K car average - on the same salaries, in a few years.

      As someone who is under 30… tell me about it. Watched my future slip away from super achievable on finishing school to a non-starter now.

    • +20

      Not sure how we went from $600K average house and $30-40K average car, to $1M house and $50-60K car average - on the same salaries, in a few years.

      Record low interest rates and record high debt levels

      • +1

        Absolutely right, and it’s easy to finance a car with so many financial options available too..

    • +1

      The price increases make sense. It's the stagnant wages that dont.

    • +1

      Population growth. More demand for housing, more workers than jobs.

    • Not sure how we went from $600K average house and $30-40K average car, to $1M house and $50-60K car average - on the same salaries, in a few years.

      The assumption that house prices go up 8% a year, interest rates at 3% then it is 5% profit. It was good at 600k it is even better at $1m. Then everything else is relative.

      It is the government confidence trick (con man / woman) which is to say if you feel richer you will feel like spending. Especially free money. If your house went from 600k to 1m then it is pretty much the same for your neighbours surrounding you therefore it isn't free money. You're just spending your equity and relative to your neighbours you are falling behind.

  • +1

    For bikes, just search Ducati or Harley and laugh at the stupid covid prices. They are already priced stupidly, but covid has made the idiots double down…

    • +1

      Oh my god, right? Bike prices are nuts right now. Glad I got mine new (same price as used lol) and before they stopped bringing new ones in from overseas!

      • +1

        A reasonably priced scooter will sell in a few days. Try finding one after JobKeeper ends.

  • +3

    maybe a good time to sell a 10 year old kluger that I barely drive now.

    • +2

      100% it would be. Check prices on carsales. Reckon you'll sell that in less than a week.

  • +1

    MK5 VW Golf Gti. A few years ago under $10k with under 100,000kms.

    Now $10K with 200,000kms also P-Plate legal now has a little to do with it,

    PS: New Amarok also is crazy.

    • Good examples are starting to get thin on the ground and they will almost definitely become collectible in the future. There is a good reason prices are going up.

  • +4

    Secondhand landcruiser 200. 2018 model, would have paid 115-120k for it, selling for 125k+ with 100,000+km

    Absurd. Matter of fact, most 2nd hand landcruiser a are covid taxed to near new (or above new!) prices for used vehicles.

  • +3

    Popular used cars are going for practically new prices. Mazda 3, corolla, i30, focus, golf. Looked at a few small SUVs as well, same deal.

    Used prices like $23k when new is $25k, used like 30k when new is 32k driveway. What. Go back on older models like 2014ish, and prices are 15k when pre covid was closer to 12k.

    If you check the red book values, private sales are well above

    • Popular used cars are going for practically new prices. Mazda 3, corolla, i30, focus, golf. Looked at a few small SUVs as well, same deal.

      If you are going to buy a 2019/20 second hand model of the cars you mentioned you might as well buy new.