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.

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