Used car sales skyrocket as fears of public transport grow

used-car-sales

For a lot of us, purchasing a used car is the simple way to avoid forking out a fortune for a new set of wheels. But according to new figures from data aggregation firm Datium Insights, Aussie drivers are now paying more than 40% more for second hand cars compared to pre-Covid in 2019.

Two common reasons car sales have surged over the last few months is due to the fear of public transport as well as a desire to explore the country on road trips.

SUVs and commercial utes were particularly popular in terms of sales. 

RELATED: Ditching public transport for your car? Here’s how to cut the cost of driving

Datium Insights analyst, Tanim Ahmed said he witnessed a 15% drop in car sales during the first few months of the Covid-19 pandemic due to social restrictions and other feelings of uncertainty. However, it didn’t take long for the market to pick back up again. 

“When trade started to resume again, the stock of new cars [from international manufacturers] was so restricted people were limited in what they could buy and that demand spilled over into used cars. That’s an effect that’s still happening today,” said Ahmed. 

And it’s not just car sales making a splash in 2021, mechanics have also experienced a sudden rise in business, thanks to a rise in the number of drivers requiring pre-purchase inspections and/or roadworthy certificates.

Funding your used set of wheels in 2021

With used car prices hitting unprecedented highs, many Aussies may be left feeling unable to foot the bill on a much needed purchase. 

One way to cover some or all of the cost on your second hand vehicle is to take out a used car loan, these are car loans that are tailored made for the purchase of second hand vehicles and can either offer a fixed or variable interest rate. 

Depending on the type of car loan you opt for, according to the Mozo database rates range from 3.97% to 11.49%, so it pays to do your research. 

Other than the interest rate, it’s also worth comparing any fees or any additional features the loan may come with, such as a redraw option or the ability to make extra repayments. 

You can get your search started by heading over to our used car comparison tool, which currently compares a range of different options from large banks to credit unions and online lenders.

Compare car loans - last updated 24 April 2024

Search promoted car loans below or do a full Mozo database search. Advertiser disclosure
  • Used Car Loan

    Fixed, Secured, No vehicle age limit

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured used car loan of up to $75,000 depending on your credit score. No vehicle age limits. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Details
  • New Car Loan

    Fixed, Secured, Excellent Credit Score [832+]

    Interest rate
    comparison rate
    Monthly repayment
    7.29% p.a.to 7.79% p.a.
    8.00% p.a.to 8.50% p.a.based on $30,000
    over 5 years

    Enjoy a quick application process and no monthly fees on NRMA new car loans. Finance also available motorcycles, caravans and motorhomes. Low fixed interest rates with terms of up to seven years. Plus, NRMA Blue Member benefits apply so you could enjoy even lower rates as an NRMA Member**.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 7.29% would cost $36,387.95 including fees.

    Compare
    Details
  • New Car Loan - Special

    Home Owner Discount, Including Demo, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.24% p.a.
    7.36% p.a.based on $30,000
    over 5 years

    Low variable car loan rate for purchasing new and demo vehicles from dealers. Personalised loan amounts between $5,000 and $150,000. Flexible repayment options. Choose between the 3 to 7 year loan terms. Good credit history. Stable employment history and Australian citizenship or PR required.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.24% would cost $35,880.27 including fees.

    Compare
    Details
  • New Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured new car loan of up to $75,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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