Supply chain delays are putting Australia’s used car market into a spin as empty lots and high prices are growing more common.
Prices are being driven higher from competitive vehicle auctions and there are reports of dealers contacting private sellers who have placed ads on sites such as Facebook and Gumtree, looking to purchase their vehicle.
This unprecedented demand in the second-hand vehicle market has seen prices rise higher than 150 percent.
“Traditionally when a business, government entity, or private buyer receive a new car, they dispose of a used vehicle,” General Manager of motor vehicles for Pickles auctions, Brendon Green said.
“Due to the lack of vehicle turnover, our auctions are extremely competitive among dealers which has driven used car price up, so it’s no surprise they are getting creative when trying to source used vehicles.”
However, individual sellers have also noticed the high vehicle demand with Kia Australia reporting some consumers who have secured an electric vehicle are able to quickly on-sell the car and profit from the soaring used car values.
“The major problem that we’re facing at the moment is the flipping of retail customers what they’re doing with the cars once they bought it,” Kia Australia chief operating officer, Damien Meredith said.
“That’s that seems to be a far bigger issue in the market than dealer delivery.”
“We’ve heard stories of people buying a car again, on the east coast, the Sydney Metro and they’re turning up in Western Australia, with a premium of $8,000 to $10,000 on them. So there seems to be a customer flipping exercise,” he said.
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