Money tight? Now is the perfect time to sell your car as the second-hand market booms
September 9, 2020
Money tight? Now is the perfect time to sell your car as the second-hand market booms and dealers are craving more vehicles
The used vehicle market is currently ‘a seller’s market’, according to car dealers
New car sales were down 28.8 per cent in August, dragged down by Victoria
Less people buying new cars means that fewer are trading in their old vehicles
There is now an increased demand for used vehicles with new vehicle shortages
FCAI chief said Victorian dealers should be allowed to reopen as ‘COVIDSafe’
By Shive Prema For Daily Mail Australia
Published: | Updated:
Second-hand cars are in extremely high demand as cash-strapped Australians are looking for cheaper alternatives to buying new vehicles.
Used car dealer Tony Bakhos from Sydney Car Exchange in Five Dock said the second-hand market is currently ‘a seller’s market’.
‘There’s lot less trade-ins, there’s no used cars at the moment. It would be at least down by close by 50 per cent,’ Mr Bakhos told Daily Mail Australia on Wednesday.
‘There is a higher demand for used cars and a bit of a wait for new cars.
‘It’s just going to get worse with COVID-19 around, especially with the borders closed, there’s not much interstate trading and travelling.’
Used car dealer Tony Bakhos from Sydney Car Exchange in Five Dock (pictured) said the second-hand market is currently ‘a seller’s market’
New car sales were down 28.8 per cent in August compared to the same time last year, according to the Federal Chamber of Automotive Industries (FCAI).
With less people buying new cars, there are fewer people trading in their old vehicles, which is making used cars more scarce – and valuable – than ever.
In addition, many manufacturers are currently experiencing shortages due to the COVID-19 pandemic, further increasing the demand for used cars.
Jackson Motor Company managing director Errol Stewart runs six car dealerships across Tasmania.
‘Just about every manufacturer has had some shortages in one form or another, so there are not as many new vehicles coming in to Australia,’ Mr Stewart told ABC Radio Hobart.
‘Consequently, people are seeing less new cars for sale, and saying, ‘I can’t get the new car I want, so I’ll buy a used car’.’
Jackson Motor Company managing director Errol Stewart (centre left) runs six car dealerships across Tasmania. Mr Stewart said new car shortages are also contributing to increased demand for used cars
The best-performing state for new car sales last month was the ACT, which actually increased by 0.4 per cent on last year with 1,312 sales.
NSW, Australia’s largest market, recorded 23,431 sales for the month, down 16.3 per cent on August 2019.
But the biggest drag on new car sales was Victoria, which is in a Stage Four lockdown that restricts people from travelling more than five kilometres away, severely hurting both car yards and private sales.
The state recorded a huge 65.9 per cent downturn with just 8,347 sales for the entire month of August.
A car with a ‘for sale’ sign in Coffs Harbour. Less people are trading in or selling their cars amid the COVID-19 pandemic
FCAI chief executive Tony Weber said Victorian car dealerships should be able to reopen with ‘COVIDSafe protocols’.
‘It is particularly difficult for our members and their Victorian dealer networks under the current Stage 4 Restrictions, and this is reflected in the reduced sales figures,’ Mr Weber said.
‘While we have the utmost respect for essential health priorities, the automotive industry supports the re-opening of our economy under appropriate COVIDSafe protocols.
‘We’ve seen 29 consecutive months of diminishing sales in this industry, and there’s no doubt our members are feeling the pinch. The move to commence the reopening of industry and markets, especially in Victoria, needs to start as soon as possible.’
An aerial view of a car dealership in Melbourne in August. Victoria recorded a huge 65.9 per cent downturn in new car sales with just 8,347 sales last month