Australian used car prices surge 37 per cent since the start of the Covid pandemic


Used car prices in Australia have soared by 37 per cent on average since the start of the Covid-19 pandemic.

The resultant global shortage of new vehicles has seen motorists instead buy late-model secondhand cars, with utes, SUVs, hatchbacks and vans all in demand.

With less Australians willing to catch public transport due to virus fears, Moody’s Analytics calculated that wholesale used car prices had climbed by 37 per cent since February 2020, just before the pandemic.  

Used car prices in Australia have surged by 37 per cent on average since the start of the Covid pandemic. Utes did even better with Holden Colorado used car prices climbing by 56 per cent since early last year to $33,800 from $21,700 based on average prices for a three-year-old example

Used car prices in Australia have surged by 37 per cent on average since the start of the Covid pandemic. Utes did even better with Holden Colorado used car prices climbing by 56 per cent since early last year to $33,800 from $21,700 based on average prices for a three-year-old example

Used cars in demand

Holden Colorado: up 56 per cent to $33,800

Toyota Camry: up 50 per cent to $23,100

Hyundai i30: up 47 per cent to $16,000

Toyota HiAce: up 46 per cent to $35,400

Source: Datium Insights data comparing February 2020 with March 2021 based on average prices for top-selling three-year old model 

Moody’s Analytics expected used car prices to stay high until at least the end of June before a repaired global supply system gets more new cars into showrooms.

‘Prices are not expected to revert to pre-pandemic levels, and they will remain elevated throughout the second quarter,’ it said.

Moody’s senior economist Michael Brisson said buyers are snapping up late-model used cars rather than going on a waiting list for the arrival of new versions.

‘Ordering your new vehicle and then waiting for it to be delivered has become commonplace across the country. 

‘Dealers and consumers have become increasingly frustrated by the inability to buy and sell with ease as in years past.’

Commuters are also more reluctant to use public transport with new Australian Bureau of Statistics data showing just 14 per cent of people caught a bus, train or ferry in March 2021, compared with 23 per cent in March 2020 shortly before the Covid lockdowns.

The Datium Insights-Moody’s Analytics Price Index calculated used car prices had surged by 37 per cent from February 2020 to March 2021. 

Utes did even better with used Holden Colorados climbing by 56 per cent since early last year to $33,800 from $21,700 based on average prices for a three-year-old example.

Toyota HiAce van values rose 46 per cent to $35,400 from $24,300

Toyota HiAce van values rose 46 per cent to $35,400 from $24,300

Despite the Holden name disappearing in 2021, it did even better than the Ford Ranger, with used values rising by 38 per cent to $39,800 from $28,900.

Toyota Camry prices have soared 50 per cent to $23,100 from $15,400. 

Hyundai i30 prices climbed 47 per cent to $16,000 from $10,900.

Toyota HiAce van values rose 46 per cent to $35,400 from $24,300. 

Newer Toyota LandCruisers have dramatically surged with secondhand prices for the top-of-the-range up by 54 per cent from $120,000 in 2019 to to $185,000 this year, well beyond the new price of $124,396.

Demand hasn’t been quite as strong for older examples with prices increasing by 10 per cent to $65,600 from $59,500 for a three-year-old model.

Toyota Camry prices have soared 50 per cent to $23,100 from $15,400

Toyota Camry prices have soared 50 per cent to $23,100 from $15,400

Hyundai i30 prices climbed 47 per cent to $16,000 from $10,900

Hyundai i30 prices climbed 47 per cent to $16,000 from $10,900

Datium Insights head of product Tanim Ahmed calculated changes in used car prices for three-year-old top-selling models. 

Mr Brisson acknowledged used car values were artificially high due to global supply problems for new vehicles.

‘The market is overvalued and will take time to recalibrate,’ he said.

‘The most likely scenario for this recalibration is through an extended period of limited price growth over the medium term.’

Moody's Analytics senior economist Michael Brisson said Australians frustrated with delays in getting a new car were turning to a used example. Pictured is a Moody's Analytics graphic

Moody’s Analytics senior economist Michael Brisson said Australians frustrated with delays in getting a new car were turning to a used example. Pictured is a Moody’s Analytics graphic

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