The Australian used car market is a lively and majorly competitive one that is great for buyers and sellers alike. Yet, why would anyone buy a used car and lose out on that new car smell? Because of one open-secret, magic, and economic word: depreciation.
First, remember that unless the quality of the car being brand new or being the car’s ‘first’ is essential to you, you should buy a pre-owned one. While purchasing a car firsthand has its advantages, the price is not among them.
You can get a functioning – even sometimes a practically brand new – automobile at a mere fraction of the cost. Generally, in the first year, it loses a fifth of its value, and by the fifth year, it will cost less than half the opening charge. Most non-Tesla electric cars are even more drastic in this category, though it may not be wise to purchase one in Australia just yet – wait for the power grids to upgrade.
Now, any asset, i.e., a thing you bought that you didn’t immediately use up or one that does not have a clear return on your investment, has a natural market price that people are willing to pay for it. How many dollarydoos are you ready to part with for someone else’s pen, pencil, apartment building, etc.
While not that simple in truth, the market price is generally based on the tug and pull energies of supply and demand, i.e., how many people can and want to sell it and how many can and want to buy it.
If you say your pen is worth 5 Australian dollars, while someone else states their matching pen is worth 4, we can simplify it and say: ‘Increased supply as driven down the price’. And vice versa for demand and price increases.
Now, while supply and demand affect both firsthand and secondhand dealings, it does so unevenly. The refurbished car dealers cannot set their price close to the original since people will buy the original in that case. The buyers and sellers also have comparable wealth and value-data, so the cost to consumers has to be good to both sides, plus there can be a lot of change in price and a chance for ‘profit’, recoupment, and savings.
Due to a combination of taxes, tariffs, consumer attitudes, and the recent lack of any local mass-market automobile manufacturer, many vehicles are cheaper over here in the land down under than in comparable developed economies elsewhere. There are a lot more listings and a lot more buyings going as well. The business has even been booming despite or maybe because of the COVID-19 pandemic.
So, there is little reason not to partake in secondhand dealing if even an epidemic will not only keep the price but raise it by a little! You do not even need to move from your seat nor take your eyes off the screen to use our online catalogue of listings.
Fill in the form to search for a specific model, make, or year. Or browse our wide variety of listings by yourself and find ones that catch your eye.