Good news for those looking to find their 'new' car in the used car market! Used car prices have fallen around 12% since May and this trend is expected to continue during 2023.
As predicted in our article "What to Expect From the Car Industry in 2023", used car prices have dropping as a result of supply of new vehicles increasing again.
The used car market in Australia has experienced significant changes throughout the past few years, with fluctuations in supply and demand, as well as economic impacts related to the pandemic.
The used car market is a key player in the automotive industry and a popular option for those looking to purchase a vehicle. Typically, used cars offer a more affordable option for those who are unable to purchase a new car or are looking to get 'more for less'.
The global supply chain has been disrupted since late 2019 with manufacturing closures and supply shortages causing a shortage in new car models available. As a result, many car buyers turned to the used car market prioritizing availability over price. In addition to this, government stimulus schemes such as the instant asset write-off scheme boosted demand for used cars. All contributing to the spike in used car prices seen over the past few years.
While manufacturing and vehicle production is yet to return to pre-pandemic levels, there has been a massive improvement as COVID restrictions ease.
The increase in new car supply is having a flow on effect to used car pricing. There are shorter wait times on new cars and car buyers are no longer forced to turn to the used car market for an immediate purchase.
Novated leasing of used cars has increased in popularity too.
A common misconception of a novated lease is the belief that the car financed must be new. Remunerator customers can enjoy all the same benefits of a novated lease on a used car.
Used cars feature many benefits beyond the ability to drive your dream car at a more affordable price! Further benefits of leasing include:
GST Savings
Pay no GST on the running costs of your used car. You will also save GST on the purchase price of your used car when purchased through a dealership.
Budget Friendly
All car related costs including car payments, registration, fuel, servicing and insurance, are bundled into one regular all-inclusive payment.
Income Tax Savings
A novated lease allows you to pay for your new car and it's running costs with pre-tax income. Reducing your taxable income and the amount of tax you pay.
Drive With Peace of Mind
Cars are built to last a lifetime (or over 10 years at least) these days and manufacturers are willing to back their quality with warranties of up to 10 years! You can drive your used car with peace of mind knowing it will last the life of your lease.
With the used car market prices in Australia cooling off, we're expecting an increase in novated leasing for them. If you're looking to make further savings on your 'new' car, talk to our novated leasing specialists today to learn how much you will benefit from novated leasing.