Is 2022 the Right Year to Buy a Used Car?

Used car prices have soared across Australia as a result of the pandemic. So, what does this mean for the year 2022?

According to new data from Allianz, 85 percent of Australians who can't afford a new car are looking to the used car market to save money. However, given current prices, the used car market may prove to be a difficult nut to crack as well.

Indeed, a study by car comparison site Carsguide found that used car prices on sites like Gumtree, CarsGuide, and Autotrader have increased significantly in the last year. It was discovered in December of last year that:

According to the same CarsGuide analysis, average costs on these car sale sites did not change between 2019 and 2020. This graph illustrates how a semiconductor chip shortage, which slowed the new car market in 2021 (and continues to do so), pushed second-hand prices higher.

So, when is the best time to buy a used car?

That is entirely up to you.

Because of the current state of the market, used prices are still high, you may not be able to get a good deal.

However, with higher vaccination rates around the world and signs that the stress on the semiconductor supply chain is easing, more new cars may become available in 2022, potentially driving down used car prices.

So, when it comes to the question of "is now the right time?" The answer is yes, but it all depends on how urgently you require a car. It may be a good idea to wait and see how the market develops but if you need to upgrade your car right now, do your research, shop around, and be prepared to negotiate.

Interestingly, Allianz found that 32% of Australians who bought used cars thought they were getting a 'lemon,' while 20% said they had a bad experience.

With that in mind, here are the tips that actually work when buying a used car:

Do your research

Compare car prices, makes, and models to find what you want while staying within your budget. If a car's price appears to be too good to be true, wear your skeptic’s hat and be ready to walk away if something doesn't add up.

Carry out all necessary checks

Ensure you know everything you need to know about the car you're about to buy, from mechanical inspections to a thorough review of the car's history. It's a good idea to hire a mechanic to inspect the car's functionality and make sure it's safe to drive. You can check the car's registration history and see if there is any outstanding finance on it yourself by going online.

Stick to your budget

Even though prices are currently inflated, don't settle for something outrageous. Stick to your budget, and if the seller refuses to negotiate, move on - there's no point in breaking the bank (it'll only cause you more pain in the long run).

Find a car loan with a low interest rate 

If you need money to buy a set of used keys, look for loans with low interest rates. Consider a variety of options and factors such as loan features and fees. Pre-approval is a useful feature because it ensures that you have the exact amount you need when you go in for your car inspection.

And, if you want to get your hands on one of these reliable, time-tested cars, there's only one place to go: Motor Matcher. Here, we strive to keep you informed and assist you in making decisions by providing you with the most comprehensive and reliable information about your rides. Visit www.motormatcher.com.au for more information on your dream car and to make it all yours.