Why you could be paying too much for a ute or an SUV as prices for popular used cars start to fall

Prices for popular secondhand SUVs and utes have begun to decline after a year of sharp increases brought on by Covid-hit supply lines for new vehicles.

Since the start of the Covid pandemic, used Holden Colorado prices have surged by 56 per cent to $33,800 when February 2020 values were compared with March 2021.

But that strong run of price growth has been interrupted with prices for the Thai-built ute falling by 3.2 per cent last week – the most dramatic decline for utes in the latest Datium Insights data. 

Prices for popular secondhand SUVs and utes have begun to decline after a year of sharp increases brought on by Covid-hit supply lines for new vehicles. Pictured is a Toyota HiLux, which saw a 2 per cent weekly drop in values

The Toyota HiLux saw its weekly value fall by 2 per cent, following a 29 per cent increase since the start of the pandemic that last month took average prices for a three-year old example to $37,200.

Popular SUVs have also taken a dive with Mazda CX-5 prices dropping 3.2 per cent as Subaru Forester used values fell 2.5 per cent.

Datium Insights head of product Tanim Ahmed said these were the biggest weekly drops among the 15 most traded used cars.

Since the start of the Covid pandemic, used Holden Colorado prices have surged by 56 per cent to $33,800 when February 2020 values were compared with March 2021. But that strong run of price growth has been interrupted with prices for the Thai-built ute falling by 3.2 per cent last week

The price fall for some car models came as the supply of used cars rose sharply after the Easter long weekend. 

The supply of used utes can increase when government agencies and local councils sell late-model vehicles to update their fleets, and that reduces prices.  

Popular SUVs have also taken a dive with Mazda CX-5 prices dropping 3.2 per cent

The drop in values for popular utes and SUVs is hardly a sign used cars are set to get a whole lot cheaper, as the overall average secondhand prices last week climbing by 2.4 per cent. 

During the past year, average used car prices have still increased by 40 per cent, a record since the Datium Insights series began in 1999, as buyers wanting a highly sought-after new car turn to the secondhand market in frustration.

‘Stock still remains considerably low,’ Mr Ahmed said.

The price fall for some popular models highlights the volatility on the secondhand market, as Covid restrictions and a global shortage of computer chips from Taiwan hamper the worldwide supply of new cars. 

Used Subaru Forester values meanwhile dropped by 2.5 per cent in one week