A slide in Australian used car prices is expected to continue this year, as new car supply finally improves almost four years after the global pandemic began.
Data released by financial intelligence firm Moody’s Analytics shows used car prices have continued to fall from the peak recorded in May 2022, and are now 17 per cent lower than the all-time high.
The firm expects used car prices to fall by 8.1 per cent throughout 2024, after having dropped by 9.4 per cent between January and December last year.
However, compared to January 2019 – the most recent low, which occurred well before the global pandemic – used car prices are 49 per cent higher than they were five years ago.
There was a slight uptick in used vehicle prices from December 2023 to January 2024, with used car prices up 0.06 per cent and used ute and SUV prices up by 1.4 per cent, but the firm nevertheless expects prices to continue dropping during the year.
The firm attributes the consistent cooling of used car prices to increased production and local supply of new cars, which reached a record-high 1,216,780 new passenger and commercial vehicles registered in 2023.
It has also warned used car prices could stop their downward trend or even increase, echoing concerns from the new car industry that the boom in deliveries is likely to end, largely attributed to the cost of living crisis.
Last month, data published by the Australian Automotive Dealer Association (AADA) – compiled in partnership with AutoGrab – showed 2,074,535 used cars were sold locally in 2023, outselling new vehicles by 57 per cent.
As with the new car market, the Ford Ranger was the best-selling used vehicle in Australia last year, beating the Toyota HiLux to claim top honours in both sales charts.
