Used car prices are surging as the coronavirus crisis creates a global supply shortage – and unlike the new car industry, SUVs are not dominating the second-hand market.
Passenger cars, which had experienced a slide in popularity when new, were highly sought-after during the current volatile economic times.
In just one week, prices for used Holden Commodores have surged by 4.8 per cent, Datium Insights data has revealed.
That is a stark contrast to its fortunes as a new car last year, when showroom sales dived by 34.6 per cent – as buyers disapproved of an old Australian favourite coming from Germany.
The most sought-after used cars in Australia
Isuzu D-MAX: up 5.5 per cent
Holden Commodore: up 4.8 per cent
Ford Mondeo: up 4.7 per cent
Ford Ranger: up 3.4 per cent
Kia Cerato: up 3.2 per cent
Toyota HiLux: up 2.9 per cent
Holden Colorado: up 1.5 per cent
Hyundai i30: up 1.4 per cent
Toyota Corolla: up 1.3 per cent
Subaru Forester: up 1 per cent
Source: Datium Insights data on weekly used car prices on September 28, 2020
Even the Ford Mondeo, hardly ever a popular choice when new, is igniting secondhand buyer interest with its used prices rising by 4.7 per cent – despite the fact the model is no longer sold new in Australia.
Datium Insights head of data science Tanim Ahmed said a shortage of imported new cars, particularly from Japan, South Korea and Germany were major contributors to motorists turning to the used car market.
The supply of new cars fell by 10.4 per cent in just one week as the COVID-19 crisis created an ‘incredibly volatile’ market.
CommSec senior economist Ryan Felsman said Australians were increasingly buying secondhand cars to avoid having to catch the train or a bus.
‘Demand for secondhand cars remain firm during the pandemic with Aussies preferring to drive their own cars rather than catch public transport due to health concerns,’ he said.
Secondhand ex-government fleet cars are in vogue, particularly if it has a tray at the back.
This has seen demand soar for utes, even if buyers are flocking to models that are now outdated.
Isuzu D-MAX prices soared by 5.5 per cent, despite late-model secondhand examples being the old model which was replaced earlier this month.
Ford Ranger values climbed by 3.4 per cent, with the late-model ones on the market now set to be replaced in 2021 with an all-new version that is based on a Volkswagen Amarok instead of a Mazda BT-50.
Toyota HiLux prices increased by 2.9 per cent, despite the fact a face-lifted model was released in late August.
Before the pandemic, used vehicles traditionally depreciated when a new model was unveiled.
The SUV market was another surprise, with Toyota RAV4 values falling by 1.3 per cent in one week, despite the medium high-rider being Australia’s most popular new car in July and August.
Toyota Kluger values fell 2.2 per cent but Subaru Forester prices have increased by one per cent.
Overall used car prices rose by 2.1 per cent in the week to September 28.
Ute prices rose 5.8 per cent, driving the secondhand market.
Former council vehicle prices rose 5.4 per cent as former government fleet car prices increased by 4.7 per cent.