Used cars are booming in Australia right now, meaning that one of your most valuable assets has no doubt risen in price. It’s all due to the shortage of semiconductor chips and the consequent lack of new cars being built worldwide. If you’re looking to trade your car in, there’s actually a chance you could turn a profit on it.
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.
In many cases, we’re seeing cars that were purchased before the pandemic being sold for more than their original purchase price, even after a year of ownership. Basically, there’s a chance you can actually turn a profit on a car even after you’ve driven it around for the past year or two years.
Getting a novated lease might be the best way to navigate the car shortage in Australia. Considering the eye-watering prices of used cars which have gone up by 30-50%, and are in some cases the same price as their new equivalents, we can understand why you’ve given up looking to buy a car. So, why not lease it? This way, you get to borrow something that’s fine instead of buying it, which would be a bit of a pain if indeed you weren’t in love with the car.
Most experts are predicting that the best case scenario will be mid 2022, and the worst case will be early 2023. But really, it depends on for how long there’s a component shortage, and then a little while longer after that while we wait for car manufacturers to finish building new cars with said components.
COVID-19 required the world to use social distancing methods to stop the spread of the virus. This then forced many car factories around the world to shut for a period, meaning there were barely any new cars being produced for a long time. Since then, the waiting time on new vehicles has increased tenfold, turning people to the used car market.
