For buyers in the second-hand vehicle market within Australia, it is likely that the phrase ‘supply and demand’ has been heard all too often in recent months. With stock shortages experienced around the globe placing strain on availability of used cars, dealerships are turning to the private market to fulfil supply requirements. As prices of second-hand models continue to soar, how can buyers remain savvy in a marketplace that has quickly evolved where sellers are driving price hikes and time is of the essence?
When vehicle sales experienced a significant drop in 2020 due to the COVID-19 pandemic, car manufacturers decreased their orders of semiconductor chips which assist to power multiple parts of vehicles. When car sales recovered faster than predicted in the latter end of 2020, manufacturers had already pivoted to developing alternative production lines resulting in what was the beginning of the global chip shortage. This has since led to a flow on effect in the Australia’s firsthand car market, where unpredictable waiting times for consumers range anywhere from 3 months to over 1 year in 2022. These lengthy delivery times have meant consumers and businesses are turning to the used car market where stock is readily available, but not without a hefty price tag attached.
The demand for second hand cars throughout Australia has seen prices steadily rise, with some of the latest figures indicating an average of 150% since pre-pandemic sales. Recent reports from The Guardian Online indicated that a NSW dealership had been contacting past customers with an offer to buy back their vehicles, dangling tempting cash offers as incentive. Although the high price tag of used cars is starting to stabilise, experts within the automotive industry do not foresee the shortages around the chip industry being overcome anytime soon. Volkswagen’s Chief Financial Officer commented on the current situation facing buyers and sellers alike that shortages are likely to last at least 2 more years until 2024.
With the second-hand market moving so quickly, it is imperative that you have access to timely and reliable information about the car you are interested in purchasing. InfoTrackGO’s Vehicle/VIN Check Report provides a fast solution to ensure you have peace of mind and confidence about your purchase, to ensure you are not ending up with a lemon. Once the order is placed on our easy-to-use platform, the vehicle report is delivered to both your inbox and your InfoTrackGO account.
InfoTrackGO provides a fast and cost-effective solution to help buyers through the process, alleviating some of the purchase roadblocks and get you on the move faster. You can view more here about what information our vehicle report provides and why these checks matter.
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