The Federal Chamber of Automotive Industries (FCAI) reported 74,650 vehicles sold in October, down 8.1% from October 2020's figures.

FCAI attributed this fall to microprocessor shortages leading to supply chain issues.

"Automotive manufacturers like all those in the global manufacturing sector are dealing with a microprocessor shortage which is leading to longer wait times to get products to market," FCAI chief Tony Weber said.

"Australians are continuing to purchase vehicles, and car makers are working to deliver products to our shores."

A boost for electric vehicles

Electric vehicles are gaining marketshare, with 275 fully-electric vehicles sold in October, up 243.5% on October 2020.

Mr Weber said this can be attributed to supportive state government programs.

"We have seen Victoria and NSW release comprehensive legislation to support electric vehicles which was followed just last week by South Australia," he said.

"All of these jurisdictions worked proactively with industry to provide infrastructure investment and consumer incentives."

MoodysUsedCars.jpg

Is this the start of the end for expensive used cars?

Moody's Analytics' used car price index shows price gains tapered a little in the September quarter, as above.

Prices dropped in August and September - the first month-on-month drop since April 2020 - falling by 5% since the peak in July 2021.

Moody's Analytics senior economist, Michael Brisson, attributes this to extended lockdowns across NSW and Victoria.

"The limited number of new vehicles sold has translated into fewer used vehicles available," Mr Brisson said.

"For every vehicle not bought, there is one fewer traded in. Additionally, the lost kilometers driven because of lockdowns and work from anywhere have caused less need to turn over fleets and purchase new inventory."

Mr Brisson said used-vehicle prices are expected to be relatively steady until mid-2022 when supply-chain issues  in the new vehicle market are worked out.

"Until then, elevated used-vehicle prices will continue to be the somewhat new normal."

Moody's Analytics highlighted where not to find a bargain on a used car - utes and SUVs.

"A 2020 Toyota Hilux that has been driven 15,000 kilometres per year starting in January 2020 is worth the same amount today as the day it was driven off the dealer’s lot," Mr Brisson said.

"Prices have dropped faster for passenger cars compared with trucks, SUVs, and utes.

"Passenger car prices have dropped by more than 4% whereas larger vehicles have dropped by slightly less than 3% since July.

"Nevertheless, prices remain elevated for both segments, with cars up 35% since the pandemic started and utes gaining 39%.

"The strength of utes is being propelled mainly by a dearth of inventory for larger vehicles.  A lack of inventory has kept prices steady despite headwinds from rapidly rising fuel prices"

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Filters
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 TagsFeaturesLinkComparePromoted ProductDisclosure
6.24% p.a.
7.36% p.a.
$583
Variable
New
No Max
$8
$400
$35,000
  • 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.
 Disclosure
6.34% p.a.
7.46% p.a.
$585
Variable
New
No Max
$8
$400
$35,084
6.57% p.a.
7.19% p.a.
$588
Fixed
New
No Max
$0
$250
$35,278
  • No vehicle age limit
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
 Disclosure
6.52% p.a.
6.95% p.a.
$587
Fixed
New
No Max
$0
$0
$35,236
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.

Important Information and Comparison Rate Warning

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