Used cars overtaking new prices by up to $20k

New analysis by RAC has confirmed the new and used car industry has been turned upside down, with second-hand vehicles being advertised for up to $20,000 more than the same model brand new.

Online car listings for April* show many used cars are being advertised at a price far higher than a brand new 2021 model.

RAC Manager Vehicles and Fuels Alex Forrest said supply shortages have caused a major shake-up of the new and used car industry in WA.

“We’re still feeling the flow-on effects of huge disruptions to car manufacturing last year, with many vehicles remaining in short supply and high demand in both the new and used car markets,” Mr Forrest said.

“More Western Australians are also upgrading their vehicles to explore our great State, meaning huge price hikes for popular cars including dual-cab utes, four-wheel-drives and medium-sized SUVs.

“In some cases, private sellers are listing these for up to $20,000 more than it would cost to buy the same car brand new.

“Higher used car prices are being driven by consumers willing to pay a premium to have the car now, rather than join a waitlist and face months of delays for a new car to be shipped to Australia.”

Mr Forrest said car imports into Australia have increased in recent months, and some car makers expect the market to stabilise late this year.

“There have been early signs of market recovery in recent months but consumers could still be waiting a while for prices to drop,” Mr Forrest said.

“The best advice for those looking for a new or used car right now is to wait until the market stabilises, if you can.

“If you can’t wait, make sure you do some thorough research, including looking at the safety rating and the ongoing costs of the car. 

“Think carefully about what is right for you, take your time, stick to a budget and be prepared to walk away.”

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*Based on listings on carsales.com.au in WA between 8 and 9 April, 2021.

Media contact: Caitlin Barr, 0401 703 719 or media@rac.com.au