With second hand car prices through the roof, is it time to sell?
With Australia undergoing a severe car shortage and fuel prices soaring, you might be eyeing up that car in the driveway and wondering if it’s worth it.
Second-hand cars in Australia are hitting peak prices, with data from Moody Analytics showing used cars are selling for 65% more in 2022 than they were prior to the COVID-19 pandemic: 18% of that has happened during the last three months.
If you’ve been seduced by the work from home lifestyle, you might not be putting as many miles on your motor as you once were. With cars no longer dramatically depreciating in value in the same way they used to, it could be time to think about whether your car could be worth more on the market than in your garage.
What is my car costing me?
A report from the Australian Automobile Association puts the national average transport cost per year in capital cities at $20,855 (and $17,195 in regional Australia). This average is based on a two car home for two people in their thirties who don’t use public transport. These amounts are both up more than $2,000 on their 2019 costs.
In the last month alone, we’ve seen car loan interest rates begin to move upwards, increasing the cost of repayments along with rises in fuel costs. We can safely say that car running costs for cars have gone up, even with WFH lifestyles being more dominant.
With more and more alternatives to car ownership - widespread public transport (estimated by the Australian government to be 30 times more affordable than car ownership), car sharing, and ride share applications - as well as more and more people opting for green cars, you might have been tempted to make a change.
Should I sell my car?
If you are thinking of trading in your car for an eco alternative or going full-time public transport, this could be the perfect time.
Traditionally, cars depreciate in value immediately on purchase. The more kilometres you have on your odometer, the more the resale price decreases. Unable to add on value onto a car, the prospect of selling yours might never have seemed particularly enticing! Things are a little bit different at the moment.
With the limited supply of new cars to the market, recent conditions have seen some used cars selling for close to new car prices.
Lloyds Auctions have recently seen cars with relatively low mileage - take a Toyota Landcruiser GXL Ute with 34,000km on the odometer which sold for roughly $8,000 above the RRP for $82,000 due to high demand for the make.
Electric vehicles are also in high demand - reflecting the rest of the market - with Teslas selling at Lloyds-owned car yards for $5,000 above standard retail pricing.
If your vehicle is a sought-after model, no longer just classic cars and luxury models, you could be sitting on a gold mine. The Suzuki Jimny, a popular lightweight 4x4, is valued at roughly $30,000 but can be seen in second-hand listings for $50,000.
What if I’m looking to buy a car?
If you’re looking to take advantage of the high prices on the second-hand market, there are some things to consider.
It’s not as simple as selling your car for a great price and snatching up something easy. If you are looking to buy again, you’ll be buying in the same market as you sold, and the market is in a state. New cars are hard to find, followed by long waitlists and second-hand prices are inflated.
While we’re big fans of public transport and love making use of ride shares, sometimes you just need a car of your own. This is the reality in areas less serviced by public transport especially. If you’re looking to buy a second-hand car, high prices and rising rates may see you needing a larger sum than you thought previously.
In the market for something new to rev your motor? Take a look at some of our best car loans and our guide to buying a used car. If you're looking to sell a financed car with an outstanding loan, make sure to read our guide.
Compare car loans
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Used Car Loan
Fixed, Secured, No vehicle age limit, $5,000-$75,000
Interest rate
comparison rate
Monthly repayment6.57% p.a.to 18.99% p.a.7.19% p.a.to 21.78% p.a.based on $30,000
over 5 yearsGet 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.
CompareCompare- Interest rate
- 6.57% p.a.to 18.99% p.a.
- comparison rate
- 7.19% p.a.to 21.78% p.a.based on $30,000
over 5 years
- Interest rate
- 6.57% p.a.to 18.99% p.a.
- comparison rate
- 7.19% p.a.to 21.78% p.a.based on $30,000
over 5 years
- Upfront fees
- $250.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $75,000.00
- Minimum loan term
- 1 Year
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read reviews and learn more about OurMoneyMarket car loans
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Used Car Loan
Home Owner Discount, Up to 5 years old, Variable, Secured
Interest rate
comparison rate
Monthly repayment7.49% p.a.8.36% p.a.based on $30,000
over 5 yearsEligible for homeowners only. Low fixed car loan rate for purchasing new and demo vehicles from dealers or private sale. There is no monthly or ongoing fees and early payout options available. Winner of Mozo's Experts Choice Car Loan 2021 award^. 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 7.49% would cost $36,939.75 including fees.
CompareCompare- Interest rate
- 7.49% p.a.
- comparison rate
- 8.36% p.a.based on $30,000
over 5 years
- Interest rate
- 7.49% p.a.
- comparison rate
- 8.36% p.a.based on $30,000
over 5 years
- Upfront fees
- $400.00
- Monthly fee
- $8.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $700.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $150,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read reviews and learn more about loans.com.au car loans
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Used Car Loan
Up to 5 years old, Fixed, Secured
Interest rate
comparison rate
Monthly repayment7.69% p.a.8.80% p.a.based on $30,000
over 5 yearsEligible for homeowners only. Low fixed car loan rate for purchasing new and demo vehicles from dealers or private sale. Early payout options available. Winner of Mozo's Experts Choice Car Loan 2021 award^. 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 7.69% would cost $37,111.05 including fees.
CompareCompare- Interest rate
- 7.69% p.a.
- comparison rate
- 8.80% p.a.based on $30,000
over 5 years
- Interest rate
- 7.69% p.a.
- comparison rate
- 8.80% p.a.based on $30,000
over 5 years
- Upfront fees
- $400.00
- Monthly fee
- $8.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $700.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $150,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read reviews and learn more about loans.com.au car loans
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Better Car Loan Special Offer
Fixed, Secured
Interest rate
comparison rate
Monthly repayment6.48% p.a.6.89% p.a.based on $30,000
over 5 yearsGet a fixed rate car loan for amounts over $20,000 with Police Credit Union. Make additional repayments at any time without penalty. Free online redraw. Available for new and used cars. Can also be used for motorcycles, boats, caravans, trailers or any registrable vehicle.
Repayment terms from 1 year to 5 years. Representative example: a 5 year $30,000 loan at 6.48% would cost $35,497.21 including fees.
CompareCompare- Interest rate
- 6.48% p.a.
- comparison rate
- 6.89% p.a.based on $30,000
over 5 years
- Interest rate
- 6.48% p.a.
- comparison rate
- 6.89% p.a.based on $30,000
over 5 years
- Upfront fees
- $295.00
- Monthly fee
- $0.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $0.00
- Minimum loan amount
- $20,000.00
- Maximum loan amount
- -
- Minimum loan term
- 1 Year
- Maximum loan term
- 5 Years
- Security required
- Vehicle
Read reviews and learn more about Police Credit Union car loans
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Used Car Loan
Up to 5 years old, Fixed, Secured
Interest rate
comparison rate
Monthly repayment9.19% p.a.10.30% p.a.based on $30,000
over 5 yearsUsed Car Loan with a fixed rate for the life of the loan. Fast online application. 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 9.19% would cost $38,411.24 including fees.
CompareCompare- Interest rate
- 9.19% p.a.
- comparison rate
- 10.30% p.a.based on $30,000
over 5 years
- Interest rate
- 9.19% p.a.
- comparison rate
- 10.30% p.a.based on $30,000
over 5 years
- Upfront fees
- $400.00
- Monthly fee
- $8.00
- Exit fee
- $0.00
- Repayment options
- Weekly, Fortnightly, Monthly
- Early repayment penalty
- $700.00
- Minimum loan amount
- $5,000.00
- Maximum loan amount
- $150,000.00
- Minimum loan term
- 3 Years
- Maximum loan term
- 7 Years
- Security required
- Vehicle
Read reviews and learn more about loans.com.au car loans
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* 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.
^See information about the Mozo Experts Choice Personal Loan Awards
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