Australians flock to used cars as new car sales dwindle

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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.

Lender
Advertised rate Comparison rate* Monthly repayment Interest TypeVehicle TypeMaximum Vehicle AgeOngoing FeeApplication FeeTotal RepaymentEarly RepaymentInstant ApprovalOnline Application

FixedNew1 yearMore details

Green Car Loan

FixedNew, Used99 yearsMore details
APPLY ONLINE
  • No extra repayment or early exit fees
  • Up to $75,000 in loan amounts
  • Funding approved within 24 hours
APPLY ONLINE
FixedNew4 yearsMore details
GET APPROVED WITHIN 24 HOURS

Car Loan (New and Dealer Used) (< 5 years)

  • Approval in 24 hours
  • Balloon options to reduce repayments
  • No ongoing fees, no discharge fee
GET APPROVED WITHIN 24 HOURS

Car Loan (New and Dealer Used) (< 5 years)

  • Approval in 24 hours
  • Balloon options to reduce repayments
  • No ongoing fees, no discharge fee
FixedNew2 yearsMore details
QUICK APPLICATION PROCESS WITH NO FEES

New Vehicle Fast Loan Low Rate

  • Quick application process and no monthly fees
  • Low fixed interest rates with terms of up to seven years
  • New car loans cover cars up to 3 years old
QUICK APPLICATION PROCESS WITH NO FEES

New Vehicle Fast Loan Low Rate

  • Quick application process and no monthly fees
  • Low fixed interest rates with terms of up to seven years
  • New car loans cover cars up to 3 years old
FixedNew1 yearMore details
No ongoing fees

Plenti Car Loan

  • Interest rates ranked in the best 20%
  • No ongoing fees
  • Can apply online
No ongoing fees

Plenti Car Loan

  • Interest rates ranked in the best 20%
  • No ongoing fees
  • Can apply online
FixedNew, Used7 yearsMore details
No ongoing fees

Plenti Car Loan (Refinance)

No ongoing fees

Rates based on a loan of $30,000 for a five-year loan term. Products sorted by advertised rate. *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. Rates correct as of January 26, 2022. 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. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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