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Record used car prices may be finally tapering off in North America, following industry-wide supply shortages and shipping complications – but the same can’t be said for Australia.
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Used car prices are finally beginning to ease in the US and Canada after a record run of hikes – however, it appears the bubble is yet to burst Down Under.
Since the beginning of the pandemic in 2020 a perfect storm of increased demand, supply shortages, and shipping complications has driven up the cost of cars worldwide.
The Manheim Used Vehicle Value Index tracks market trends in North America based on the sale of more than five million transactions every year.
Following 22 months of almost-uninterrupted increases, the organisation’s latest data reveals prices have been slowly coming down since February this year.
In April the average price of a used car fell approximately one per cent per month-on-month – albeit, to a point still 14 per cent higher than one year earlier.
However, according to local industry experts the downward trend is unlikely to be replicated in Australia any time soon.
“The bubble hasn’t burst here yet. I think we are still 12 to 18 months away from seeing used car prices settle,” a veteran wholesaler told Drive.
“Used car prices will stay high until new-car supply improves. Good quality used cars are as hard to find today as they were six months into COVID.
“The money people are getting for good used cars these days is still crazy.
“Used cars within a few years old and have done average [kilometres] of, say, less than 30,000 or 40,000km, are getting good money.”
Last month new car sales fell 10 per cent below the historical average for April, with most manufacturers blaming stock shortages for the decline.
“This is not a reflection on the demand for new vehicles,” Tony Weber of the Federal Chamber of Automotive Industries said in a statement at the time.
“This is a reflection on the global automotive industry’s ability to supply vehicles to not only Australia, but all markets.”
He has maintained a primary focus on industry trends, autonomous technology, electric vehicle regulations, and local environmental policy.
As the newest addition to the Drive team, William was brought onboard for his attention to detail, writing skills, and strong work ethic.
Despite writing for a diverse range of outlets – including the Australian Financial Review, Robb Report, and Property Observer – since completing his media degree at Macquarie University, William has always had a passion for cars.
Read more about William Davis 
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