This is despite new car sales experiencing 29 continuous months of sales declines.

Moody's Analytics, which tracks prices on car auction site Pickles' wholesale market transactions, found prices increased 7% in August alone, up from 4.7% in July.

This coincides with Gumtree reporting a 19% surge in used car searches.

Moody's Analytics auto economist Michael Brisson says this is also a global phenomenon.

"The rapid increase in prices for used vehicles due to COVID-19 is not only an Australian phenomenon. It is happening in developed countries across the world," he said.

"The ute segment, which includes SUVs and light trucks, has increased by 32% from the previous year and the wholesale passenger-car market increased by 23% during the same period."

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

Update resultsUpdate
LenderCar LoanInterest Rate Comparison Rate* Monthly Repayment Interest Type Vehicle Type Maximum Vehicle Age Ongoing Fee Upfront Fee Total Repayment Early Repayment Instant Approval Online Application TagsFeaturesLinkCompare
6.24% p.a.
7.36% p.a.
1 year
  • Available for purchasing new and demo vehicles
  • $5,000 to $150,000 loan amount
  • Redraw facility available up to $5000/day
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
6.34% p.a.
8.36% p.a.
1 year
6.57% p.a.
7.19% p.a.
No Max
Loan amounts from $2k to $75k
  • Available for any new motorised vehicle
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
  • Get quick decision. Funds in 24 hrs if approved
6.09% p.a.
7.21% p.a.
1 year
  • Discounted rate on qualifying electric cars
  • Up to 7 yrs loan term
  • Redraw available up to $5,000/day
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of . View disclaimer.

Similar interest is seen in the new car sales space, with light commercial vehicles and SUVs making up more than 70% of new sales in August.

However, the used price surge could be short-lived according to Mr Brisson.

"Used-vehicle prices will likely move sideways over the remainder of the year," he said.

"Price gains will slow as supply increases with sellers seeking to take advantage of the high prices and COVID-19-related demand gets wrung out.

"Stress in the labor market will continue to cause consumers to worry about their jobs and the economic recovery.

"This may limit demand in the coming months, lowering prices."

Moody's Analytics' research also reports that public transportation uptake is 60% below January levels, while driving routes searched are down just 10%.

The research also highlighted that as petrol prices decrease (which was seen earlier in the year), demand and prices for used 'trucks' increases (below).


Ready, Set, Buy!

Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

By subscribing you agree to our privacy policy