I’m wondering if this spike in prices and shortage of used vehicles are going to see a turn in the other direction?
If so when? If not why?
Bad time to buy? Would today’s buyers be suffering an even steeper depreciation when things get back to normal?
sure it will but how long can you wait
if it bounces back in say 4yrs when some car companies have decided to go fully EV….
6-12 months, when/if new car supply has caught back up
Can people afford to pay for a new car considering they have paid out a premium for a second hand?
It was real interesting, it seemed when the first wave first hit. Everyone was strapped for cash and cars were super cheap. Even i struggled to get a sale. Now it all seems over priced
While many have unfortunately been affected negatively, the majority have continued to work from home for over a year with much lower ongoing costs (commute costs, work clothes, dry cleaning, outside food & drink, no events, shows, parties, holidays etc) contributing to a significant increase in disposable income.
Couple that with limited supply in the market of vehicles and like I said above, it's basic demand vs supply.
I think there was an initial fire sale as international students fled (I work near a uni and picked up a lot of real cheap gaming gear). However it didn't last long as there was the bushfires and canberra hail storm money coming out to replace thousands of cars.
you might as well buy from a dealer. it's cheaper than private in many cases I've found
No. Cars are houses for poor people, it is an investment now.
What goes up must come down, its just a matter of time.
welcome to the real estate market in aust capitals
It’s a complex answer. It is possible that prices will not return for a very long time. There are several factors leading to the increased prices. What is ‘normal’ anyway?
Supply of new cars is down and may take a long time to return to normal.
Covid has caused factories to shut down due to lack of staff from restrictions and illness.
Factories have moved to focus on prodcucts in high demand. Why would they keep producing products they can’t sell? I heard somewhere one of the problems for vehicles is the computer chip factories have moved to medical or entertainment products.
People can’t travel internationally so want to buy lifestyle vehicles to travel locally.
People have extra cash from govt subsidies and super so are spending on luxury items like cars.
People don’t want to catch public transport so purchase a better car to commute.
There are more. Each of those factors will have individual timeframes to settle back to some new normal.
Yes, there will eventually be a reversion to "normal" pricing. How long this will take is the real question.
Been in in the market for a few cars such as MX5, Honda ep3 type r and corolla sportivo. the price has jumped up at a minimum 3k. I'm hoping the price diversion happens soon but only time will tell..
Basic economics: https://en.wikipedia.org/wiki/Supply_and_demand