Spike in Aussies getting their cars repossessed as cost of living bites – with electric vehicle owners hit VERY hard

Australians’ changing driving habits have exposed the shocking reality behind the country’s cost of living crisis.

The number of repossessed vehicles offered for sale continues to rise as Australians face a growing cost of living crisis.

Auction site Pickles reported an average 13 percent increase in the number of repossessed cars coming to auction over the past six months.

In the second quarter of 2024 – April to June – the number of vehicles recovered increased again by 11 percent compared to the first three months of 2024.

It is striking that the number of electric vehicles (EVs) in use increased by a record 91 percent in the second quarter of 2024. As many as 82 vehicles were auctioned.

“This represents 246 percent year-on-year growth, underscoring Pickles’ growing status as the place to buy a used electric car,” the report said.

‘For the remainder of 2024, we expect a more stable growth pattern, but we are witnessing the largest shift in fuel types in generations.’

The number of repossessed vehicles for sale continues to rise as Australians face a deepening cost of living crisis. (stock image)

Pickles said in its second quarter report that the “significant percentage” of reclaimed vehicles coming in before auction was due to several factors.

“Pickles believes the two main factors driving this growth are continued cost-of-living pressures related to high CPI inflation and interest rates, along with owners’ declining ability to refinance as vehicle values ​​generally decline, in contrast to the explosive growth in used (car) values ​​prior to the second quarter of 2022,” the report said.

The report said used vehicle volumes continued to grow, with a new post-Covid record and a 34 percent year-on-year increase in used car sales.

This comes after the ABS reported a slight increase in personal loans for vehicle purchases in May, which stood at around $1.397 billion in outstanding loans that month.

That figure is a marginal decrease from the $1.4 billion reported in September 2023, and a significant increase from the $693 million reported two decades earlier in May 2006.