>
Year-long wait times have seen desperate customers pay the price of a new car for 12-year-old second-hand vehicles as manufacturers struggle to find stock.
The second-hand car industry has boomed, with some cars worth 60 per cent more than they were three years ago thanks to Covid factory lockdowns and global computer chip shortages.
Australians with reliable small cars, sturdy four-wheel drives or fast V8s can sell their vehicles for tens of thousands more because customers don’t want to wait months for a brand new vehicle.
The 2010 Holden Commodore SSV is worth $30,500, about 60 per cent more than it was worth in 2019
Other second-hand cars are selling for more than new vehicles with some people choosing to spend extra on an electric car they can drive now in the hopes of saving money on fuel.
A 2010 Holden Commodore SSV, boasting a six-litre V8, has taken first place for the biggest median price increase, Carsales data provided to Daily Mail Australia showed.
The car is now worth over 60 per cent more than it was in 2019, with sellers typically charging about $30,500 for the 12-year-old model.
Carsales Editor-in-Chief Mike Sinclair said the Commodores gained a collectible-like status in 2021 after brand-owner General Motors cut production of Holden vehicles.
‘It’s a car no one is making anymore,’ he said.
‘It’s fun to drive, and it’s got a V8 engine, so Aussies are jumping on it.’
The 2017 Toyota Corolla Ascent is worth about 40 per cent more than it was in 2019 at $23,500
The 23-year-old 1999 Toyota Landcruiser GXL is now worth $21,500 compared to just $13,500 in 2019.
A brand new Landcruiser GXL costs around $75,000, but customers will need to wait 280 days to drive their new car, 22 per cent longer than three months ago.
Similarly, the Toyota 2008 Hilux SR is now worth 50 per cent more than it was in 2019, with the second-hand model now worth $22,500 compared to its new counterpart worth about $48,000 with a 150-day wait time.
Director of Content at Drive James Ward said a leading issue driving up prices is that Aussies don’t just want better cars. They want them now.
1999 Toyota Landcruiser GXLs saw the second-highest price jump between 2019 and 2022 with second-hand vehicles selling for $21,500
‘Production of new cars has come to a halt and there’s a massive back log of orders,’ he said.
‘When it’s literally impossible to buy the new car you want, the power is in the hands of second-hand car sellers.
‘As soon as state borders opened people wanted to get out and holiday so turned to the good old road trip.
‘For that they need an adventure focused vehicle with good towing capacity, they have a need and they want it now.’
Mr Ward said the price of Hyundai i30s have also gone through the roof with models bought brand new in 2017 for $33,950 now worth $31,950.
One weird turn in the market Mr Ward noticed is the dramatic change in demand for electric vehicles that has seen second-hand Tesla Model 3s jump $20,000 in price.
People are now paying $85,000 for second-hand Model 3 cars when they cost $65,500 to buy new.
‘People are looking at the rise in the price of fuel and rather than wait 18 months for a new Tesla, they’re choosing to spend an extra $20,000 to buy one now,’ he said.
‘It’s crazy! You could use a sports car with a V8 engine and drive like mad for 18 months and still not use that amount of money in fuel.
‘You’ll never be able to recoup the extra cost by saving money on fuel.’
Director of Content at Drive James Ward said customers are opting to spend an extra $20,000 to buy second-hand electric vehicles now rather than wait 18 months with inflated fuel prices
He said it was a similar story with Toyota Landcruiser GX 70 series which are $73,000 new from dealerships but selling for $103,000 in second-hand markets.
Other notable price jumps in the Carsales data are the 2017 Ford Mustang GT which is worth about $13,000 more than in 2019 at $60,990 and the 2017 Toyota Corolla Ascent which is worth $6,500 more at $23,500.
Mr Sinclair said the long wait time for new cars can be blamed on a number of things, the most pressing being a global shortage of computer chips.
Toyota Landcruiser GX 70 series are selling for $103,000 on second-hand markets, despite only costing $73,000 new from dealerships due to long waitlists
‘Chip shortages have been an ongoing issue in the automotive industry, partially because of the pandemic but also because each car now uses more chips,’ he said.
‘Heated seats need a computer, moving mirrors need a computer, every additional feature in the car needs another computer.
‘Now with chips in short supply, car manufacturers are just joining the queue.’
Mr Sinclair added production companies are running with less staff and often at a slower pace due to international social distancing measures.
Second-hand Tesla Model 3s are reportedly selling for $20,000 more than new vehicles because customers are keen to skip long waitlists
The graph above shows a range of cars’ median value or how much they costs to buy new and what they are selling for on the second-hand market
‘Cars are made on production lines so if you have to separate people because of distancing requirements those staff can’t do as much at the one station and less cars are being made,’ he said.
‘No cars are made in Australia anymore so we’re at the whims of the world’s rules.’
He added that more Australians moved towards driving over using public transport through the pandemic.
‘Through Covid, Australians decided they wanted to drive again,’ he said.
‘We’re adding cars to the family fleet, not trading them in.
‘As the new car supply dries up and there’s not as many cars to go around the used car market gets tighter.’