Desperate SEQ buyers forced to pay ‘absolutely nuts’ prices for second-hand cars

Desperate South East Queensland buyers are paying ‘whatever it takes’ to secure a second-hand car, as new data reveals the top three price explosions. SEE THE BIGGEST MARK-UPS

Desperate South East Queenslander buyers are forking out “whatever it takes” to secure a second-hand car and paying tens of thousands of dollars more than its original price on the most sought-after models.

Demand for used cars has gone into overdrive amid a global shortage of new vehicles, microchips, and 12-month waiting times for vehicles to be delivered, while February floods wiped out thousands of cars.

Popular models with thousands of kilometres on the clock are selling for blown-out prices, some in the tens of thousands more than the original outlay, with experts concerned there was no end in sight.

The Car Guy Bob Aldons said second-hand vehicle values had increased tenfold since the pandemic.

According to Carsales listings from January to May 2022, the top three models with the highest price increases were “all-time favourites” Toyota HiLux (59.9 per cent increase), Toyota Landcruiser (49 per cent) and Holden Commodore (41.1 per cent).

A Carsales spokesman said there had been significant jumps in prices across the board over the past two years and that the upward trend was tipped to continue.

Redcliffe-based market commentator and broker Bob Aldons said buyers were paying “whatever it took” to secure a vehicle.

Mr Aldons said desperate buyers were paying ridiculous prices for second hand vehicles with tens of thousands of kilometres on the clock.

“It’s absolutely nuts, unheard of,” Mr Aldons said.

“There’s very little negotiation going on and sellers are getting a lot more than what they paid for it just two years ago.

“Cars are appreciating if they’ve been kept in good nick, but a bomb is a bomb. Even crazy people won’t overpay for a bomb.”

Mr Aldons said Toyotas traditionally held value well and were in major demand.

“I’ve heard people paying $30,000 more for a Toyota that’s just a few years old,” he said.

“I also know a guy who just bought a Landcruiser, paid $150,000 and a month later he was offered $175,000 for it.

“Prices haven’t stopped going up. Unless you absolutely need it, I’d wait.”

Clayton’s Towing boss Mike Clayton said prices for second-hand vehicles had spiked by about 25 per cent across the board.

His Nambour business regularly auctions off impounded vehicles and is gearing up for another.

“Prices have gone through the roof, I’d say about 25 per cent across the board,” Mr Clayton said.

“You struggled to get vehicles from Covid supply chain, then the floods took out tens of thousands of them.

“We are due for another auction, so it will be interesting to see the turnout.”

Clayton's Towing owner Mike Clayton estimated second hand car prices had increased 25 per cent across the board.

Mr Clayton had tried to purchase an Isuzu D-MAX utility at another auction, which eventually sold for more than the owner had paid for it a few years ago.

He said trucks were also in high demand.

“The market has gone a bit stupid. A new truck you’re looking at one and a half year wait,” he said.

“Eventually things will figure themselves out but it will take a while.”

Federal Chamber of Automotive Industries public affairs manager Doug Wyllie said people were turning to the second hand market due to a global shortage of new cars.

Mr Wyllie said the waiting time for new cars varied from models and brands, stretching from days, weeks, months or years.

The Carsales spokesman said vehicles had also sold in a 20 per cent faster time from mid-2020 to mid-2021 – driven by the sheer demand.

“Know what the cars you’re considering are worth and where they sit in marketplace,” the spokesman said.

“And make sure you’re buying the car you need (not just the car you want)… For instance, do you really need a seven-seat SUV when 99 per cent of the time the third row will be stowed away?

“Perhaps use this opportunity to consider alternate vehicles. You might have purchased three Toyotas in a row. Have a look at what great brands like Mazda and Hyundai or Kia offer in the same space.”

Mr Aldons said he’d never seen anything like these skyrocketing levels of demand.

“When is it going to end?” he said.