Increase in used car resale prices

[Deactivated] on 20/02/2015 - 11:50

Hi Ozbargain,

Has anybody noticed that used car prices has gone up? The last time I did a serious search was when I got my old current car (end 2013). I'm not too sure about the market behavior but I can't find any car at the same age+mileage+price combination as I did 1+ year ago. Of course I do not expect things to stay exactly the same but it seems that my current car can be listed for more than I bought it for (5 year old when I bought it).

I have always expected cars to depreciate quite a lot (5-10%/year after the 3rd year), and car value for its age and distance travelled to stay somewhat the same. I can't really say for sure because used cars are quite diverse but in my state (QLD), it seems that used car value have increased 20-30%.

Could it be that there are less used cars on the market? It appears that there are less listing overall for the makes and models that I looked at.

Automotive

Comments

  • npc on 20/02/2015 - 12:00
    +4

    I've noticed that and actually this has been confirmed by a sales person from pickles auctions.

    Price hike seems to be related to a recent hail event in November 2014. A lot of dealerships were affected with their vehicles either being written off or still repaired. This hugely reduced a number of used cars on the market in SE QLD so prices went up.

    • [Deactivated] on 20/02/2015 - 13:04

      Thanks. Seems logical. In your opinion how long do you think before the market might return to normal?

      • Charity on 20/02/2015 - 13:37

        Awhile. the cyclone may even put further pressure on prices.

      • npc on 20/02/2015 - 16:01

        Not a pro in car prices, but it seems we need another 6 month or so for price to become equal between QLD and other states.

        At the moment it doesn't make any sense to purchase used vehicle priced over $20k here, much cheaper and probably safer to buy something in NSW or VIC:)

        • [Deactivated] on 20/02/2015 - 17:38

          The prices are even crazier at the 8-12k range.

  • spackbace on 20/02/2015 - 13:45

    Car salesman in Perth, and some cheaper cars we've actually had a couple of calls from Queensland buyers, even looking to factor in transport costs to get the car over. Some don't want to buy QLD cars just in case it was hail damaged, and I guess others looking for the cheaper cars.

    Here it's still normal, usual depreciation lol probably just different with the storms you guys have had over recent years

  • Toph Beifong on 20/02/2015 - 20:04

    Cars a holding their resale value quite well these days, even though more and more used cars come onto the market each year. I guess here in Australia buyers are too afraid to wonder out and buy something thats not a Toyota/Mazda/Nissan etc and try out other brands.

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