Used car sales skyrocket despite new car sales slump

author-avatar By
on April 30, 2020
Used car sales skyrocket despite new car sales slump

Photo by Carles Rabada on Unsplash

Car auction site Pickles had a huge uptick in used car sales in March, despite new car sales declining for 24 months in a row.

March 2020 experienced a 17.9% drop in new car sales, based on the same time in 2019, and represents the 24th consecutive month of declines.

Yet car auction site Pickles has experienced a doubling in used car sales since the start of the year, and a 91.6% jump in purchases in the last two weeks of March.

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

Lender

FixedNew, Used99 yearsMore details
APPLY ONLINE
  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
APPLY ONLINE

Car Loan

  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
FixedUsed99 yearsMore details
QUICK APPLICATION PROCESS WITH NO FEES
  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
QUICK APPLICATION PROCESS WITH NO FEES

Used Vehicle Fast Loan Low Rate

  • No ongoing fees
  • No early exit penalty
  • Flexible repayment options
FixedUsed5 yearsMore details
  • Flexible repayment options
  • Can apply online
  • Approval is instant

Used Car Loan (up to 5 years) (Fixed)

  • Flexible repayment options
  • Can apply online
  • Approval is instant
FixedUsed12 yearsMore details
  • Flexible repayment options
  • Can apply online
  • Approval is instant

Used Car Loan (Fixed) (8+ years, Dealer Only)

  • Flexible repayment options
  • Can apply online
  • Approval is instant

*Comparison rates based on a loan of $30,000 for a five-year loan term. 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 August 10, 2022. View disclaimer.

A large reason for this is because of the discounts on offer, according to Pickles' general manager of motor vehicles Brendon Green.

“We’ve seen trends within the business that show significant savings for our buyers," he said.

"Currently, used cars are being sold at a discounted rate of approximately 10% to 20% across well-known brands such as Toyota, Subaru, Mazda, Nissan, Kia, and Ford.

“This is an opportune time for those who have been thinking of purchasing a used car to make the jump to secure some significant savings."

This discounted rate falls in line with what Auto Expert's John Cadogan says buyers should demand off the top of new cars when negotiating with a dealership.

Despite closing on-site inspections to the public, Pickles is still conducting virtual auctions and supplying detailed vehicle condition reports, and suggests motorists can save between 10% and 30% by buying at auction.

Editor of PerformanceDrive Brett Davis told Savings.com.au that used cars are an increasingly attractive proposition for buyers.

"While the local new car market is down by 13.1% in the first three months of this year, showing more consumers are reluctant to make a new purchase, now could be a good time to buy a used vehicle," he said.

"Used vehicles don't require such a big outlay, even in the premium and performance sectors, yet the product can be quite similar to a new product if the year model is recent 

"It's quite a nervous market as well and there will be some owners interested in a quick sale."

Davis' PerformanceDrive YouTube channel, which reviews luxury and performance cars, has more than 100,000 subscribers.


Latest Articles

author-avatar
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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy