The Sunday Mail (Queensland)

Used car buyers beware: Prices won’t go down for two years

- DARREN CARTWRIGHT

IT COULD be two years before the absurd prices being paid for used cars ease, experts fear.

The warning comes as secondhand dealers struggle to re-stock and trouble plagues the importatio­n of new cars and parts during the coronaviru­s pandemic.

Exclusive Carsales.com.au data shows the median price for a Toyota LandCruise­r has risen 50.7 per cent while the ultimate run-aroundtown vehicle Toyota Corolla has risen 30.5 per cent.

The Carsales.com.au statistics compared March 2020, when coronaviru­s cases began to sweep the nation, with March 2021.

“Our research throughout the COVID period showed there are a significan­t number of people adding a car to their family, or buying a new car and not trading in their old one,” said Carsales editor-in-chief Mike Sinclair.

The retention of vehicles is one reason second-hand cars were in short supply and it is just one issue confrontin­g dealership­s, said Motor Trader’s Associatio­ns of Queensland (MTAQ) remarketin­g division chairman Peter Dever.

Coronaviru­s-related factory closures in car-manufactur­ing countries have “choked new car supply lines and in turn reduced the number of vehicles being traded in,” Mr Dever said.

“The knock-on effect is that usually for every new car sold, one is traded-in but they’re not, and so we have a shortage.”

On that basis, Mr Dever said he could not see a way out of the supply-demand rut for up to two years and that’s providing car manufactur­ers ramp up their production.

“It’s just ridiculous the prices dealers are being asked to pay at a wholesale level and that is being passed on at a resale level,” Mr Dever said. “Cars that we should be paying $5000 for, we are paying $7500 or more.”

 ??  ?? The LandCruise­r is in huge demand.
The LandCruise­r is in huge demand.

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