Of all the impacts of the COVID-19 pandemic, there is one that has caught us by surprise – the surge in the prices of used cars.
It’s not just the market for high-end luxury or collectible cars that is on the rise. The price for regular daily drives has been soaring too. Data from Carsales.com.au found the price for Toyota LandCruisers has ballooned by more than 50 percent in the year to March 2021, while Toyota Corollas are now selling at a 30 percent premium.
Overall, Moody’s Analytics suggests the prices for used cars has grown by 37 percent from February 2020 – an unexpected result that could suggest big dollars if you have a car sitting in your garage that you no longer need. So, is it time to put your car on the market?
Why the price surge?
To find the key reason why the used car market is rising so rapidly in Australia, we have to look global: to the worldwide shortage of semiconductor chips. Chip factories in a number of different countries have been forced to close through the pandemic, which has a flow on effect on the new car market which uses these chips.
With less new cars available, consumers are flocking to the used car market, draining supply and pushing prices sky high. And it’s unlikely that the chip shortage will be addressed until closer to the end of the year.
Another factor on the surge of used car sales is behavioural; with the COVID-19 virus making it riskier to be in public spaces, Australians have been shunning public transport for the use of their own private vehicles. With more people looking for cars, there is additional pressure on supply.
Is it time to sell?
The market for used cars is red hot right now but it won’t stay that way forever. Eventually, the stock of new cars will flow more readily which means there will be much less pressure on the prices in the used market.
But if you’re lucky enough to have a spare car or a vehicle you don’t need on a daily basis, now could be the perfect opportunity to sell your car for a record price.
How can I get the best price?
Even in a surging market, you’ll want your car to look it’s best to ensure you can get the best possible sale price. It’s why, if you’re planning to sell your used car, it could be time to look into a paint repair.
Afterall, the very first thing a potential buyer will notice when they look at your car is the paintwork – whether it’s faded, if it’s been chipped or if there is damage. Not only will any buyer mentally add the cost of repairing these issues into the price they’re willing to offer, but they may see it as an indication of how the car has been treated – and assume there are lurking issues that aren’t visible.
But on the flip side, no seller wants to overpay for a paint repair for a car they aren’t going to be driving anymore.
Luckily, with Bumpertek you can have the best of both worlds. We provide high-quality car paint and bumper repairs at a competitive price. And best of all, with Bumpertek you don’t need to drive your car to a workshop – we’ll come to you and in most instances, repair your car in the same day.