Is your old bomb a gold mine? Why used car prices have surged to the best levels in 21 years – and the models that are most in demand
- Datium Insights data had record 31.7 per cent annual surge in used car values
- Most of the increase has occurred since coronavirus pandemic began in March
- German-designed SUVs from BMW and Mercedes-Benz had the biggest rise
- Japanese SUVs and utes also saw rose price rises due to global new car shortage
Australian used car prices have surged by record levels unseen in 21 years.
Global supply shortages of new cars as a result of the coronavirus pandemic have seen motorists flock to SUVs and utes in the used car market.
In the year to October, used vehicle prices surged by 31.7 per cent, the highest level since the Datium Insights-Moody’s Analytics data series began in 1999.
Most of that increase has occurred since March when the World Health Organisation declared a COVID-19 pandemic and governments around the world closed their borders.
Mercedes-Benz GLA (pictured) has risen by 27.8 per cent from $30,200 to $38,600 this year
Utes are popular on the used market. Toyota HiLux prices rose by 26.3 per cent to $27,800
Since the start of the coronavirus crisis, average prices for a BMW X3 SUV have surged by an even more dramatic 42 per cent, when the September quarter price of $30,000 was compared with the March quarter price of $21,100.
Used cars surging in value
BMW X3: up 42.1 per cent to $30,000
Mercedes-Benz GLA: up 27.8 per cent to $38,600
Toyota HiLux: up 26.3 per cent to $27,800
Ford Ranger: up 20.6 per cent to $25,200
Toyota LandCruiser: up 17.8 per cent to $55,000
Hyundai i30: up 17.7 per cent to $15,300
Mazda CX-5: up 7.2 per cent to $31,200
Subaru Forester: up 7 per cent to $21,500
Source: Datium Insights data comparing average used car prices in the September quarter of 2020 with the March quarter of 2020
The Mercedes-Benz GLA, another small German-designed SUV, saw its values climb by 27.8 per cent to $38,600 from $30,200 in just nine months.
Japanese SUVs have also fetched more on the used car market with Mazda CX-5 prices rising by 7.2 per cent to $31,200 from $29,100.
Subaru Forester prices have increased by seven per cent to $21,500.
Utes were also popular on the used market with Toyota HiLux prices rising by 26.3 per cent to $27,800 as equivalent Ford Ranger values rose by 20.6 per cent to $25,200.
Datium Insights head of product Tanim Ahmed said tradies in particular were opting for a used ute to get around long waiting lists for a new one.
‘One of the things that we’ve noticed is that the supply of new models – particularly the HiLux – it’s a bit tight at the moment,’ he told Daily Mail Australia.
‘That’s meant that a lot of tradies or people in industry that need access to a fairly new ute decide to buy a used one, maybe a two or three-year-old one instead of waiting, getting in line to get a brand-new one.’
SUVs that were popular on the new car market were also fetching more as used cars.
‘The used car market and the preferences of buyers is a good reflection of what happens in the new car market,’ Mr Ahmed said.
Secondhand Toyota LandCruiser values surged by an average level of 17.8 per cent, rising to $55,000 from $46,700.
The large four-wheel drive was Australia’s fourth most popular brand new vehicle in October, behind the Toyota HiLux, Ford Ranger and Toyota RAV4.
At the other end of the size scale, Hyundai i30 saw its secondhand price surge by 17.7 per cent to $15,300, albeit off a much smaller base.
BMW X3 prices have zoomed up 42.1 per cent from $21,100 to $30,000