Australians flock to used cars as new car sales dwindle

author-avatar By on August 13, 2020
Australians flock to used cars as new car sales dwindle

Photo by Lance Asper on Unsplash

With 28 consecutive months of declining new car sales, searches for used cars have increased by 19% in three months.

Last week, the Federal Chamber of Automotive Industries (FCAI) reported 28 consecutive months of new car sales declines.

But today Gumtree revealed that from April through June, there was a 19% uptick in automotive searches compared to January through March, amounting to 155 million.

Makes and models to experience the highest growth include the Isuzu ute (up 87%), and Hyundai (up 70%). 

Toyota, however, still dominated the listings, with 125,825 models listed in the past six months.

In the market for a new car? The table below features car loans with some of the lowest variable and fixed interest rates on the market.

Provider
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayment
 
4.67% 5.22% $562 Go to site
New Car Loan
5.45% 5.80% $572 Go to site
5.49% 5.87% $572 More details

Data accurate as at 01 October 2020. Rates based on a loan of $30,000 for a five-year loan term. Both fixed and variable rates are included. View disclaimer.

Site-wide, Gumtree has more than 95,000 automotive listings on its site, with 32,000 new listings each week.

Gumtree's head of motors Richard Dicello said the intention to purchase used vehicles is still high.

"Despite the disruption, 87% of Gumtree Cars users are still intending to purchase their next vehicle within the next three months," he said.

Premium vehicles are also experiencing an uptick in searches, with Lexus up 54%, Mercedes-Benz up 32%, Audi up 31%, Land Rover up 30%, and BMW up 25%. 

How to sell a used car

Founder and director of SASS Financial Services Canna Campbell outlined a few tips to get the most 'bang for buck' out of selling a used car.

  1. Research the sale price of similar items already listed – even add them to your Watchlist so that you can keep an eye out for how quickly they sell.
  1. Consider listing as “negotiable” if you want to move an item slightly quicker, but ensure you’ve used [Gumtree's] Instant Car Valuation tool first, so you know if you’re under or overselling.
  1. Details – list as much as you can about the item, especially with extra details and add-ons such as extended warranty, cruise control, sunroof, as this helps give the buyer all the information to help make their decision, without the need to keep asking! Little details like when you purchased it, service history and why you are selling also help to tell that story. 
  1. Photos – upload as many photos as possible to show the details and quality of your item. 
  1. If you’re lucky enough to have a second car sitting in your garage or you’re realising that you don’t need your car and can go without for the time being, find out its value so that you can then decide if it’s worth selling.
  1. Use your proceeds wisely – selling can help bring in some extra cash, so make sure that you have a goal in mind so that the money goes proactively to good use. 

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2019. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

Some providers' products may not be available in all states.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*The Comparison rate is based on a $30,000 loan over 5 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

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author-avatar
Harrison joined Savings in 2020. He is a journalist with more than four years of experience, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

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