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!
OZB team are discussion about Jimny, my boss was intrested and i am told by dealer that dealer is increasing price by $1K every month and delivery is next 15 months from now and he can place the order by placing deposit of $ 300 now. Last year in Feb Jimny was costing $ 23K with 6 months delivery and now its $ 35K with 12 months wait and 2nd hand $ 50K.immediate delivery.
I had just done the search on Mahindra - Thar. Looks very impressive and expected to land price at $ 20 - 24K depends upon the addon. This vehicle has become a great sucess and shown better performance then Jimny.
Wow… That Mahindra looks like a lawsuit waiting to happen. Jeep a will be none to pleased with that offering…
Mahindra was granted a license (without expiry) in 1947 to use the Jeep and CJ trademarks
Well, TIL. Did not know that… That would explain why it looks like a near photo copy of a Wrangler.
Yup,it certainly was.
Some problem prone Porsche 911 (996 generation) bangers with IMS bearing issues that were ~$30k pre covid are now asking for ~$50k.
To be fair 996 is the cheapest entry level 911 at the moment. No one wanted them 2-10 years ago due to the ugly headlights and IMS issues. I think they were starting to appreciate pre covid as buyers looked beyond the headlights and realised it's still a great car with decent performance and at the end of the day a Porsche badge on the front. Covid just helped kick them along.
The 964 wasn't desirable 10 years ago and were the cheap entry level 911 until 5 years ago. Look at them now. Friggin crazy.
Yea .. had a 964 for a few years .. friggin amazing .. loved that flat 6 at high rpms .. didn't like the stress from worrying about a $40K engine rebuild .. but it survived my track driving and road driving without major problems .. miss that car .. should have kept forever ..
Maybe the Jimny isn't the best example due to it being in high demand and short supply but the prices for cars have definitely gone up.
Mustangs are up at least $10k. Generally 2nd hand was around $50k and now they are floating around $60k for a good low KM one.
Anything dual cab or ute is actually mental. $30k will only get you a very high KM car. And the amount of 2nd hand Hilux's that are actually more expensive than brand new blows my mind.
Anyone with a Commodore now thinks its worth double, probably compounding effect of COVID and speculation.
Mercedes G63 just had a $25k price rise last week on RRP
This is following a $12k increase in March last year
Edit: and still a 12 - 24 month wait on new orders
Jimnys look fun. Tiny little 4wds, like the old RAV4s before they became massive soccer mum cars. The old 3 door RAV4 had an even smaller wheelbase than an Echo.
Nimble cars, absolute blast to drive.
They're awesome man. Would love to get one one day but not looking likely at this rate. Agree re the old rav 4. Miss those!
They can go pretty much anywhere a fully kitted out $150k Landcruiser can with a few mods. You just can't bring much stuff ;)
Not sure how this was ever classified as a recession.
Everyone has plenty of money.
Banks and Government just throwing money at people
Casuals in particular earning more through job keeper than their regular job
And being paid $550 to be unemployed…happy days!
Bucket Loads of Superannuation money has suddenly become accessible.
Property is booming like never before
Its the first "recession" where incomes and property prices have gone UP and car sales have boomed!!!!
As OP pointed out, car prices have spiked but so have so many other prices as well, including many grocery items
Not sure how they are measuring inflation but its way over the 2% they keep quoting
Not sure how this was ever classified as a recession.
Quite simply the price of EVERYTHING will fall.
Forget the Recession which we are already in.
We are heading straight into a DEPRESSION!Just look at the hundreds of thousands queuing at Centrelink already
Its going to get much worse!Best advice is to hold onto any cash you have in case you havent figured that out already.
And whatever you do, make sure you pay down any debt FAST!
And definitely do NOT take on any new debt.And if you havent figuresd this one out, all jobs are on the firing line now (with just a few exceptions)
Job security has just gone out the window.
OzBargain Thread Will car prices fall? Good time to buy a new/used car 25/03/2020
The trouble is that printing money devalues cash, so assets become more expensive and you end up effectively poorer without realising it. Almost like a depression with a friendly mask. But this inspires consumer confidence (eg thinking that we avoided a recession) which is an important part of getting out of a recession.
Which makes it sound like you should shift your money to assets before they get even more expensive.
But I agree about avoiding debt. I'd hold off on property etc, but have put more in the stock market. It could go south, but not enough to cripple me, and I still get to ride the mass delusion that everything is okay until it pops.
Next few months will be interesting.
My 8k Holden VE Wagon I bought in 2019 is now worth 10k.
You forgot to add covid inflation. More like $14K
I'm very tempted to sell it, but you can't really get a car similar. I love wagons
I bought a MY12 VE S2 wagon for 4k the other day. Pretty chuffed given the insane prices at the moment.
Edit: insured it for 9.5k.
Jesus its real.
Bought my 2017 Triton GLS (hail damaged new, complete respray) for $37k, with a 6 year / 200,000k warranty.
On carsales they are listed for $37-$40k with 70-100,000 km driven. Thats insane.
I was thinking the other day I might be lucky to get $25k if I sold. Might have to seriously consider it now..
I bought a used 2015 Q5 privately in 2018 for 37k. I was looking to sell it in early 2020 and the prices on carsales for similar cars were around $24k, eventually for other reasons decided not to sell. Later, in Dec 2020, sold it for $34k. I had put on about 30k kms in the time I had it.
On the downside, after selling the above, bought a 2019 Q5 40TDI sport or 63k from a dealer. In normal times this would have been 8-10k less.
Carsales Research still is listing the private price at between 50-54k for the Q5 but when you look what's be advertised the cheapest is 66k!
If you buy and sell at the same time, you don’t win or lose really as prices move together.
is it really worth a 29K difference to buy a 4 year newer Q5?
The new one was purchased as a business car, so will avail the asset writeoff, and will claim back the GST (10%), so actual cost of upgrade in this instance was much lower than 29k. Besides, I'm wary of keeping an euro car beyond 5 years of age. To be able to sell the old one for not much less than what I paid for it 30k kms ago just made the decision easier.
'Written off' up to the GST and depreciation limits of course.
@BartholemewH: Yes, the "instant asset writeoff" limit for cars is "$59,136 for the 2020–21 income year" as per https://www.ato.gov.au/Business/Depreciation-and-capital-exp…
Been looking for Kluger since August…everything at least 50% premium.
If it is recession and so many have lost their jobs then who is buying these cars at inflated prices?
Why there is demand and supply issue of cars?
The people who have lost their jobs aren't buying cars.
You have factories shut down overseas, car imports have slowed down.
International travel is not on the cards, you have people with cash to burn looking for an SUV-based trip in aus instead.
Wfh is a thing, people with steady jobs now have more money in their pocket from commuting costs and are putting less kms on their car - they can sell and upgrade to something less efficient or commuter-y.
Probably lots of other reasons too
I would presume a HUGE reason is simply that people are turning away from public transport. Not only is the capacity on most services reduced but people don’t want to rub shoulders with everyone in a pandemic. Even as the economy recovers, people aren’t going back to the bus.
One of the failures of Victoria hotel quarantine is security guards car pooling.
Ms Cocks said she witnessed a range of concerning behaviour among security guards at the hotel.
"From our window, we could watch them arrive at 6:00am in the morning — two cars, eight guards would all get out to start their shift," she said.
"That would've been the first thing that you would've stopped, that they would be travelling in a car together to come to work."
A train full of people never got COVID because people are scared of strangers.
@netjock: On the one hand, I'd dispute this. We've had quite numerous contact tracings for trains and busses, and seen outbreaks in transport overseas, as well as this there's many places these guards could have spread their infections to each other, than simply the car. If anything, carpooling limits the exposure to persons who are outside the quarantine worker circle (and outside the scope of daily saliva testing.)
But on the other hand, it's doesn't really matter who's right or wrong. I very much presume that this is driving people away from PT regardless. It doesn't have to be logical or backed by science to see a cultural shift happen anyway.
@haemolysis: I don't necessarily disagree.
I see people who cram on regardless in Melbourne CBD even when there is 2 trams behind the current one and they are all heading into the city and terminating at the same point.
But I would suggest survival instincts against strangers be stronger than people you know. In the US after Thanks giving and US / UK after Christmas infection rates have shot up.
You are more likely to embrace people you know than people you don't. That is an added level of risk.
Yep. My 30 minute, $100+ a week (fuel and parking) commute is now 5 seconds and $0. There's over $5k a year right there
Don't forget the instant asset write-off for businesses … also created lots of artificial demand for cars.
Demand from returning long term overseas travelers.
Bought a brand new Titon GLS Premium for 45,700 in April last year and sold it for 55K a couple of weeks ago had only 1,600kms
Why did you do this lmao
Literally were you speculating on cars???!!?
I didn't end up driving due to covid and Mitsubishi got rid of the GLS premium and thought out the Sr as he top spec but less standard features
I want a Titon too
Used car market has gone bonkers.
Japanese imports are high mainly due to the changes in US laws but 4WDs/SUVs are crazy atm.
4WDs/SUVs are very popular in car searches with Land Cruiser, Prado, and Ranger topping searches. Just look at the prices too. Covid tax!
Parents bought a Prado VX last month and there's a 4 month waiting list. Ditto for the RAV4. Wait times wasn't this crazy back in Nov.
Maybe that guy we used to bully about the high-yield investment was right after all… I feel bad now.
Had my eyes on the Mazda Miata MX-5 before covid. Drive away price was $34,990 for the softback. Now the price is $44,990. So almost $10,000 increase.
Got a short wheel base pajero for $14500 in July last year before prices went nuts theres two on carsales with more kms for $21k as i just looked.
Good car, i was looking at jimnys too, they were about same price then for 150000kms which is a lot for a small petrol so i thought the mitsubishi would be better as diesel.
great for camping and mountain bike. am happy
That's awesome mate. Love seeing those shorty pajeros on the road, super cool. Glad you like it.
Meh just wait until more people put their cars up for sale and the dreamers with high prices go away
As for new cars. The semiconductor shortage + covid means there's a long wait for new cars so high demand and no discounting. Several months wait and years for some manufacturers
XR5 babyyyy, based on FB group posts they haven't risen by too much.
XR5's are manual. You can buy practically anything manual for pre covid prices.
Actually ignore what I wrote, just checked carsales and they have gone up in price too. Geez this COVID tax is something!
During lockdown I was about to pull the trigger on a Maserati Levante for $75k in the used market but I bought a business instead, now I’m ready to go down the path of a SUV and the same spec Levante are back over $100k, same with Macan and F-Pace. Missed the good deals.
Have the price of new cars gone up too then?
My mum bought a Mazda 2 late last year. The dealer wouldn't budge on price and Mazda's were selling like hot cakes even with a two-month delay due to the factory shutdowns earlier.
I was talking to a guy last year who had just bought a new Mazda 3. He had benn told by his dealer that all of mazd's cars were being sold even before the ship carrying that had arrived in Australia.
If you don't like the price the answer is simple: Don't buy. If people are demanding near new prices for 3 year old cars then just wait them out.
I'm looking at the JZX100 Toyota Chaser in my garage I bought for $10k in 2012 and seeing ones on Carsales between $25k for auto and $45k for manual. Unsure if it's COVID tax or them now being eligible for import by Americans and Canadians due to the rolling 25 year rule. I don't think anyone is buying them for that price though.
I think it's the rolling 25 year rule as you said. The trick is to buy the dip before it rolls round.
Didn't the Toyota Yaris price increase because of new car price increased? It's basically the same price as Corrolla now… Toyota legit said if you're too broke to get new go buy second hand and then the second hand price increased. NICE!
Toyota said the Yaris increased in price in order to have a better engine, and added safety features. They could no longer maintain the super low pricing.
Bad move by Toyota as new Yaris sales have dropped by 75%.
Bad move by Toyota as new Yaris sales have dropped by 75%
Or demand for small tiny cars has decreased. You can't travel overseas and interstate (or is to risky), going on car trips in a Yaris wouldn't be too fun.
Nah, 3 small cars have made it to the top 10 highest sales sold in Australia but it’s Toyota cannibalising the Corolla and Yaris sales as they’ve pitted them close to each other now.
@pogichinoy: Im just reporting what my friend said, and he's in Toyota corporate.
https://www.canstar.com.au/car-insurance/top-10-selling-cars…
The small cars have decreased in sales, though still being popular cars.
I'd imagine the updated Yaris (and associated pricing) was well in the works before travel restrictions came in to place.
I was looking at Audi S3 3 years ago, and Mercedes CLA45 and used earlier models 2014 are still around $35000-40000
Literally haven't dropped at all, and many less listed.
I actually need a new car for work but the Ozbargainer in me doesn't want to purchase a second hand car atm as I KNOW they are overpriced, S bomb Toyotas from 15 years ago going for over 10k
try FB marketplace, I saw many Camries cir 2005 are around 5-6k .
Mazda 3
Purchased a second hand golf R 2016 back in 2018 for $35k, same car now sells for $40k. Both COVID and Mighty Car Mods tax slapped on I assume. I think it’s gonna mean my insurance premiums will be heading north…
Have been sitting on a S15 200sx for a few years now. I paid 10k, they are now selling for 30k-35k and only going up.
I bought a Yamaha R1 12 months ago for 16k, they are now selling for 22k-23k
Absolute stonks here. You gonna sell either any time soon?
S15 might sell in a couple years once the american market opens up. Its in relatively stock form with 120k's on the clock so a prime candidate for a ridiculous price. The biggest hassle is storing it, it only gets driven around the block every couple of months so just takes up space lol!
The R1, im not looking at as an investment so ill probably sell when the K's get a bit high. problem is where to go from here. Possibly s1000rr?
Fair call - need a three car garage mate! Lol
S1000rr is a helluva lot of bike wow. Ducati v4 is always tempting too…
There are classic storage places out there. You get a good space and a battery charger. You still have to show up every now and then to run them. If its not an ex habib tempe and tan virus car you will surely profit by holding
Been looking for an s15 for some time and watching the prices on car sales just keep going up. Lmk when you decide to sell!
My 2011 suzuki swift with a crack at the rear bumper and 155,000kms and a market value of $4,500 got surprisingly offered to buy by a dealership for $5,500.
So I went ok, hold on to that price for 2 days. Went back home, listed on Gumtree for $7,000 to try my luck and got an offer and payment of $6,800. It was gone within 2 hours of listing!
Yep, cars are on high demand. (unsure why?) Just covid is it making people prefer to travel in a car rather than public transport?
God cars are high maintenance and high cost.
Turned over a few cars in the past year….Sold a 2014 Qashqai Ti around the beginning of covid for 25k, couldn't give it away for $16k around 6 months prior. That took 2 hours to sell. Then sold a CX9 Luxury of the same year for same price and purchased a 2018 A45 with 4k on the clock for 60k, currently worth at least 65k. Got our daughter a cheap Kia Rio for $6500 from a dealer a year ago, sold it last week for $7500.
Then there's my weekender, a 2002 HSV GTS. Combination of Holden closing as well as covid tax has made everything with a Holden/HSV badge skyrocket. Probably doubled in value the past couple of years.
I was quoted $31990 for a new Honda CRV VTI in January 2020, today that same car is now around the $37000 mark.
On a cheaper scale, late last year I bought a 10yo Hyundai Getz manual for my son to learn to drive in. I paid just under $7k but if I'd bought it 9 months earlier, could have got it for well south of $6k. It's a great car with very low kms and I've rarely seen a 10yo car in such good condition. My whole car search saga was very depressing. There's just not many decent 2nd hand cars for sale right now and what is available is overpriced crap.
There are still some rare occasions where pre-covid priced cars do pop up. But they are snatched up very quickly. I have also had a few cars this year and bought a few on impulse, as I knew that I could drive them for a bit and break even, or make a little bit of cash.
I do think that most of the COVID prices have now peaked. Especially when it comes to the 987.1 Cayman S, there are quite a few on the market now trying to see if they can sell their cars for 10-20k more then what they are worth, but they aren't selling. The 90s/early 2000s manual sports cars were always going to go up. Look at the S2000 market, its insane. I really wanted one, but I got the Cayman instead. I am not paying 40k for an average S2000.
This years purchases between me and my missus:
2011 Porsche Cayman>Purchased late 2020 for $56000>worth $62000
2009 370z>Purchased early 2020 for $14500>worth $18000+
2015 ND MX5>Purchased mid 2020 for $22500>Sold late 2020 for $26000
2014 BRZ>Purchased mid 2020 for $18500>Sold mid 2020 for $18500 (I didn't like that car)
1991 NA MX5>Purchased early 2020 for $7500>Worth $9500
Audi TTS Manual>Purchased early 2020 for $19000>Sold mid 2020 for $24000 (likely worth 30k now)
Volvo C30> Purchased early 2020 for 14k> Sold mid 2020 for 22k (likely worth 25k now)
V35 Skyline>Purchased 2019 for $8500> Sold for $7500 early 2020 (likely worth 11k now)
All of these cars I sold were advertised for about 1-2weeks before they went.
Wow. Awesome stuff thanks for sharing. How are you guys in a position to buy so many cars?!?! Sounds fun.
Its just a fun hobby really. I get bored very easily and we want to experience as many cars as possible. So we set instant notifications on Gumtree/Carsales etc. So whenever one we want pops up for a really good price. We make sure its not written off and then roll the dice. And since we can only fit 3 cars in our garage and we don't want to store them outside. We have to sell them. Some of these we actually would want to keep forever if we had the storage space.
Most of these cars are within the 10-20k price range. So its actually not the most expensive hobby once your setup and if you don't spend much money on mods. Main thing is that you make sure you get it for a good enough deal that you will break even reselling it after stamp duty/rego/insurance/maintenance/storage/interest/interstate transport and 3-6 months ownership.
I forgot to add. We had a manual NC2 MX5 with BBS wheels and Recaros>Purchased 2019 for $14500>Sold early 2020 for $14500, now worth $22000 according to the crazy NC2 prices.
I love getting a fairly rough car that's dirty as and advertised with terrible photos and detailing it and making it perfect again.
That's awesome dude. I was picturing an Aussie Hoovies Garage 😂
Sounds like a pretty reasonable approach and something I'd like to do if I had the space.
@[Deactivated]: Hahah, you could call it that actually. I have now owned 25 cars in the past 9 years…..
I did want to do more youtube videos on them. I did some really basic tutorials on my Renault Clio RS that got 34k views on one video.
However we only got proper internet about 3 years ago. I think I have missed the youtube boat now unfortunately.
@Commander Shepard: Never too late to start if it's something you're keen on! Some of the bigger channels I follow only started a year or two ago. And some of the better channels I follow only have a couple hundred or thousand subscribers.
@[Deactivated]: True true. "SavageGeese" is an excellent channel and I recently started watching "JayEmm on Cars" again which isn't bad.
Huge respect to the 1 or 2 man channels who upload 1-2 times a week. I don't know how they made the time to do it earlier on.
@Commander Shepard: Oh I watch those guys too! SavageGeese is truly incredible re production quality. JayEmm is great too but SavageGeese is in a different league.
You must pay so much stamp duty!
@stevtom27: Yep I do. That's the part that sucks. Makes it very hard to break even if you go through and try out a lot of cars.
Dont you need a dealers licence to turn over that many cars?
I think its 4 or more a year in SA. But I have never had an issue. And its rare that we actually buy more then that.
WHO NEEDS so many cars……..
Was the ND mx5 a 1.5 or 2.0? Base or GT?
I had two 2015 2.0L Manual GTs in Reflex Blue with Tan interior. I have test driven a 1.5L. But never purchased. I think they are both great. I recommend the NC and ND MX5s to everyone. They are great cars.
2nd hand Mazda BT-50s. I currently have a top of the range 2013 BT-50 - was considering selling it last year, prices were around the $25-$28k mark for my specs. The minimum is now $33k for the exact same specs. Tempting…
Covid Car Price Inflation
I'm guessing the prices in Melbourne have just gone up again…
Trying to buy a Nissan 350z at the moment and they are all outrageously priced.
I prefer the 280z
You are think of the 260z (unless you actually prefer the 280zx to any other z car).
Pretty much.