23 Jun, 2024

Used-car prices plummet amid cost-of-living crunch

Australians are enjoying lower prices for used cars as a growing number of families turn to the second-hand market amid cost-of-living pressures.

Figures published by AutoGrab and the Australian Automotive Dealer Association (AADA) show more than two million used cars were sold nationwide in 2023, up a huge 34.4 per cent.

Prices also fell from peaks seen last March when used cars retained 75.8 per cent of their original value, reaching a low of 67 per cent (an 11.6 per cent decline) by the end of 2023.

The shift is a big turnaround from the pandemic years when used-car prices soared amid a series of global supply chain bottlenecks that limited the number of new vehicles available.

Those bottlenecks have now been resolved, and the influx of new vehicles has had a marked effect on the second-hand market, particularly as population growth picked up post-COVID-19.

AutoGrab chief operations officer Henry Pedersen said it’s been a “turbulent” year for used-car sales, with prices falling despite an increase in demand.

“There was a really long period there since mid-2020 where there was a shortage of new cars,” Pedersen said.

“That’s coming out of the market, which has immediately dropped prices. That’s a

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Tax Season Should Bring Peak Wholesale Used-Car Values

Tax refund season has begun, which usually results in the annual peak for wholesale used-vehicle values.

Anticipating that demand, dealer business picked up in late February, according to the latest Manheim Used Vehicle Value Index. Manheim says dealers should be aware tax refund/spring selling season for used cars is getting under way.

Averaged out over the entire month of February, wholesale used-vehicle values ​​were virtually flat for the third consecutive month, comparing December 2023, January 2024 and February. Manheim says price stability is welcome, but values ​​were still lower than a year ago.

The Manheim Index for February, which was published March 7, was 203.8. For December and January, it was 204. However, the February Manheim Index was down 13.1% vs. a year ago. The Manheim Index has been below the year-ago month for 18 consecutive months, according to Manheim data.

The seasonally adjusted average used car price was $18,645 in February 2024. That was down 13.1% from $21,452 in February 2023, Manheim says.

Analysts say used-vehicle values ​​are down in part because of the recovery in new-vehicle availability, along with an increase in new-vehicle factory incentives. That’s drawing well-qualified buyers back to new vehicles.

During the height of the

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Surge in Used Car Market Prices and SUV Demand | Indian News | India Business News

CHENNAI: When Dilip Singh was looking to sell his seven-year-old SUVs whose odometer had clocked nearly 1 lakh km, he was surprised to find that he managed nearly 70% of the cost of the vehicle.
With new car prices soaring over the last few years, the value of used cars has also gone up. In the last two years, the average ticket prices in the used car market has gone up to 6-6.5 lakh from Rs 3-3.5 lakh, said Vinay Sanghi, CEO, CarTrade group “Since new car ticket size has also gone up by around 30%, it’s spilling over to the used car market too as in all types of cars, people opt for buying the top-end variant,” he said.
Used car marketers say the demand pull means a slightly older SUV is available for the price of a hatch. “Currently, used SUV prices can start from as low as Rs 3.5 lakh while hatchbacks prices can start from Rs 2 lakh only,” said Gajendra Jangid, co-founder and CMO, CARS24 Services.
Compact SUVs have become top draws, and in the luxury space specific models like the Mercedes-Benz C-Class, Audi Q3, and BMW X1 Series are particularly popular, said Niraj Singh,
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