Has the pandemic spiked car prices?

Has the pandemic spiked car prices?

Most of you would have noticed car prices have gone up significantly over the past two years. But by how much exactly?

The most common reasons for car price hikes include supply issues (stemming from a semiconductor shortage), increases in cost for raw materials, complications around shipping and parts procurement, factory shutdowns and other pandemic-related issues.

But just how much have these disruptions sent car prices up?

New car price increases

The price of new cars has gone up as much as 25% since before the pandemic – according to an ABC article quoting website pricemycar.com.au.

A detailed analysis of 1100 models by goauto.com.au meanwhile calculates that as of March 2022, the average price of a new car is up 7.6% since pre-pandemic times.

Used cars

It appears that because of the wait times for new cars (due to supply constraints), used car prices have gone up even more, rising 50%!

Meanwhile, car valuation expert Redbook.com.au estimates a 25 to 35% increase in recent years.

It’s no wonder recent Mozo research shows that 52% of car buyers took out a loan to buy a vehicle in the past decade, for an average loan size of $25,000.⁣⁣⁣

So, if you’d like to find out more about financing your next vehicle purchase – whether it be for your household or business – get in touch with us today.

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