Your trusty daily driver that you’re thinking of selling? Start seeing dollar signs. That rusty old project that you never got around to fixing? Money in the bank. A motorised esky? Probably worth the same as a house in Vaucluse – Ts and Cs apply.

The used car market is booming in Australia and all over the world. What’s responsible for it? A perfect storm of a component shortage, lack of new cars being built and waiting times for certain models going through the roof. So, if you’re thinking about buying a used car or selling a used car, here’s why the used car market is booming.

How it all started

Since late 2020, we’ve been experiencing a used car boom. COVID-19 pandemic required the world to use social distancing methods to stop the spread of the virus, forcing many car factories around the world to shut. This meant there were very few new cars being produced for a long time. 

Pair that up with increased wait times for new models, which turned people to the used car market, and you’ve increased the value of used cars. And once the production of cars resumed, the world experienced a shortage of components, particularly semiconductor chips. Then, you’ve gone and increased used car prices again, because cars are hard to obtain.

Is it a good time to sell?

What does this mean for us now? It means that, yes, this is an absolutely cracking time to sell your used car. We’re seeing people turn a profit on cars they bought before the pandemic, even after having driven it for two years. And even if your car has depreciated in value, it’ll have depreciated far less than if you had sold it before the pandemic. However, think about whether you’re selling a car that you don’t need anymore, or whether it will need replacing. If you need to replace your used car, it might be difficult to find a new version of it or another used car that hasn’t gone up in price a lot.

Is it a good time to buy?

Typically, no – but that doesn’t mean you can’t find a good deal in a tough climate. It’s true that the used car boom has encouraged car owners and dealers to put their prices up – even if we’re talking about a rust bucket that has holes in the footwell. But if you talk to an expert car broker, like the ones at Fingo, you’ll be sure to find a great deal.

Fingo are Australia’s leading team in car brokerage and finance, offering smart car advice. Whether you’re buying or selling a car during the used car boom, they’ll guide you through it, ensuring that you keep more money in your pocket. Fingo works for you, delivering the best results and using their enormous database of over 2,000 dealerships across Australia to find you your dream car at a dream price. 

Fingo Finance