THE COST OF YOUR WHEELS
ON TOP OF RECORD CAR VALUES, FUEL PRICES AND INSURANCE HAVE SOARED
I wasn’t going to wait. The process was very simple. JUAN DELARD DE RIGOULIERES
AUSTRALIAN drivers attempting to ease cost-of-living pressures are cashing in on high prices for used cars.
But improved supply of new cars and increased availability of used models could burst the automotive price bubble which was caused by the coronavirus.
Australia’s most popular automotive brand said demand for new models is waning, while the country’s largest car sales site recorded a near-40 per cent increase in vehicle listings since the same period last year.
Carsales.com.au listed more than 200,000 cars for sale when the pandemic struck.
That number dropped to around 125,000 in February 2021, before climbing to 145,000 12 months later.
The site lists around 197,000 cars today, according to Red Book general manager and Carsales data ata services director Ross Booth.
“What is interesting is that t the mix is more private than dealer,” Mr Booth said.
“People are selling their cars privately. We believe it’s people trying to maximise their price before the market decreases.”
Mr Booth said the trend apppears more opportunistic than desperate, and that there was no evidence people are “selling their cars to feed their family”.
Enormous demand and limited it d supply of cars saw used car prices climb 65 per cent above normal levels in 2021, according to Moody Analytics. The firm said prices will fall as improved supply meets a reduced appetite for new and used vehicles this year.
Federal Chamber of Automotive Industries chief executive Tony
Weber said id the th 84,873 new cars delivered to Australians last month was the strongest January result since 2018, suggesting the industry is “continuing to recover following years of supply chain disruption and delay”.
Sean Hanley, vice-president of sales and marketing for Toyota Australia, said that although Toyota holds a strong order bank full of customers waiting for a new car, fewer people are coming forward to place new orders.
“For the past four months consistently I’ve been seeing our customer inquiry rates drop to pre-covid conditions,” Mr Hanley said.
Coronavirus concerns pushed thousands of commuters to ditch public transport in favour of their cars. It stands to reason that some of them will return to trains, trams and buses, particularly if personal finances are punched by rising costs.
The Insurance Australia Group (IAG) reports car insurance has increased by about 10 per cent yearon-year, driven in part by natural disasters.
Rising road toll prices have become an election issue in NSW, where western Sydney commuters pay up to $3410 a year on tolls.
IAG Group reports car insurance has increased by about 10 per cent year-on-year, driven in part by natural disasters.
Petrol prices dipped below $1 a litre in 2020 before pushing beyond the $2 mark in 2022, prompting government action in the form of a temporary reduction in the fuel excise.
Diesel fuel rose from an average of $1.43 a year in 2021 to $2.07 per litre in 2022, according to the Australian Institute of Petroleum. Average prices are around $2.11 a litre this year. That means the cost of filling up Australia’s most popular new car, the Toyota Hilux, has increased from about $114 to $169 since 2021, an annual increase of more than $500 a year.
Large four-wheel-drives such as the Toyota Landcruiser now cost more than $200 to fill.
Similarly, petrol prices increased from $1.47 a litre in 2021 to $1.84 in 2022 and $2.02 this month.
Lengthy new vehicle delays prompted Sydney IT worker Juan Delard De Rigoulieres to buy a lightly used model through Carma, an online used car dealership.
The business charged $35,000 for a 2020 Subaru Forester delivered to his door with a warranty and safety check. Private sellers trying to cash in on inflated prices are asking up to $10,000 more for the same model. “I wasn’t going to wait,” he said. “The whole process was very simple. I liked the fact that they are honest about the imperfections, at least the cosmetic ones.
“It was weird to know who to trust.”
Owning a car is too big of a commitment
FINDER’S TAYLOR BLACKBURN