If you’re buying a used car, you’re more likely buying an older used car. If you’re doing it tough, then your car is more likely to be repossessed. In new car land, the Ford Ranger (aka a poor imitation of a ute) remains Australia’s top-selling vehicle, the Toyota HiLux (another pretender) is first of the losers followed by the Toyota RAV4, Mitsubishi Outlander and Tesla Model Y (boo).
We’re broadcasting to you live from the WAMIBus (Weekend Australian Motoring in the Business Section) at Global HQ in a nondescript suburb of inner Emerald City with our special guest today, Tanim Ahmed, the head of business intelligence at Pickles’ data business Datium. As you know our team here at WAMIBus need a lot of help with any form of intelligence. During Mick’s recent visit to hospital the surgeon told him that not only could he not find his heart but half his brain was missing too.
Tanim has been tracking used car prices since before Covid (remember those more blissful times). “Prices were increasing before Covid, peaked in 2022 and have been on a downward trend since. The second quarter of 2024 set another new record for vehicle sales volume in the post-Covid era. While EVs still represent a minor percentage compared to internal combustion (proper) engine vehicles and EV new-vehicle sales growth has softened over 2023, the volume of used EVs sold by Pickles has grown. A steadier growth pattern is expected for the rest of 2024, but we are witnessing the greatest shift in fuel types in generations.”
Much more interesting are the cars that are keeping high residual values.
The minute you sign the papers and own your shiny new car, you have dropped 15 per cent of what you paid. So, if you transferred $50k from your finance company to the car dealer for the Mitsubishi Outlander, you have just dropped $7.5k. If you have just handed over the brown paper bag with $600k cash for a new yellow Lambo then you have just dropped about $100k and that’s before bullet holes. It’s really important when you’re buying a new or used car you understand how much your car is going to go down in value over time.
Looking at Tanim’s blog is a great start (datiuminsights. com.au) is a good start. Today, Toyota dominates the top five spots with Landcruiser, RAV4 and Uber’s favourite driver the Camry on the podium.
Of course, the other thing to consider is how much your car will cost to service. Remember printers? New cars are like printers. The cars are only a platform to sell you high-priced service and parts. The highest-paid person in a new car dealership is the exec responsible for parts and service. And please, please don’t go to your dealer for tyres. The more expensive the car the more you’re going to be touched up.
And don’t forget what our mentor, Don Trump, says about EVs: “The cars don’t go far enough. They’re very, very expensive. They’re also heavy.”
Talking of used cars, RM Sotheby’s (the Pickles of the northern hemisphere) is holding a new sale in Germany at the Concours of Elegance Germany, at Gut Kaltenbrunn on Lake Tegernsee in the Bavarian Alps, next weekend.
Of course, if your partner is not a metal head then he/she/other can experience experiences that you can’t experience anywhere else. I’m talking Tag der Blasmusik, a day dedicated to brass band music and Waldfeste, which seems to be an experience where all the men put on leather shorts, shoes with long grey socks and the women put on white aprons and sensible shoes and dance erotically to the Polkafreude. I am assured that this Waldfeste bears no resemblance to the WWII scorched earth operation and countermeasures to French resistance activity in the Vosges.
Naturally the theme is German cars like the 1955 Porsche 550 Spyder by Wendler, one of just 90 built with European racing history, including class podiums in Spain, Portugal and Gut Kaltenbrunn. Yours for only $5m with a little depreciation but high parts and service expenses. For a little less, one of just 20 examples of the Chiron Sport 110 Ans Bugatti and for about $2m the most beautiful Porker, a 2019 935. One friend, 20 readers, I am tearing up on the Olivetti ribbon while writing this. Based upon the primary mechanical components of the 911 GT2 RS Clubsport, the new 935 featured outrageous carbon fibre bodywork, as well as exquisite styling details such as contemporary 911 RSR-sourced wing mirrors and 908-style “machine gun” rear exhausts.
Imagine it’s Saturday morning and you’re Lotus Brisbane dealer Craig Rose. Normally you’re in the Emira but today you’re heading down Brunswick Street to Carl and Nicola’s Death Before Decaf in the Valley in the 2019 Porker. Reader, if you haven’t been there let me explain. Inspired by tattoo culture and heavy music, Death Before Decaf is a 24/7 purveyor of high-quality coffee and tunes without the fancy embellishments of the specialty coffee scene. What could go together better than you in a 530kW twin turbo Porker that will get you off the traffic light at Annie and Bruns streets and hitting 100km/h in just 2.7 seconds and by the time your outside DBD you’re cruising at 340km/h.
While your WART (Weekend Australian Racing Team) will be sadly missing from the Historic Leyburn Sprints next month, make sure you get to the best heavy metal circus in the world to celebrate the 75th anniversary of the Australian Grand Prix with a record entry of 243 historic, classic and performance cars. And we’re even sponsors!
This week’s questions: Is Mercedes’ new front wing the key to their success? Can McLaren ever stop making mistakes like crook pit stop and bad tyre decisions? Can Ferrari come back? Can Zhou, Logan and Val score any points at all this season? Can Kick Sauber score any points this season? Who will fill the vacant seats at Mercedes, Red Bull, Haas, Alpine, Sauber and Williams? Where will Sainz, Ricciardo, Ocon, Bottas, Zhou and Logan go? (Hint: see who is in the seat with your correspondent at the Winton 300 in August. Another hint: Sainz will likely go to Alpine.) Will Audi buy Sauber? (Yes)
And what will happen at this weekend’s Hungarian Grand Prix?
Best bets are: 1: Mad Max; 2. Leaping Lando; 3. The Hamster; 4. Georgie and 5th: Our Oscar.
Don’t forget to subscribe to our free (you get what you pay for) newsletter at jc@jcp.com.au or johnconnollycars.com
When being of good cheer means shifting through the gears
Whatever way you’re celebrating the festive season, let’s reflect on those less fortunate in Brunei, where it will be Christmas-less but at least you can spend the day admiring the Sultan’s cars.
When you have more money than sense, try a Pagani Zonda
It’s reputedly got the same power as a turbo-prop aircraft and probably flies faster when it leaves the road and buries itself in a tunnel wall. Life flashes by quickly behind the wheel of a Pagani.