Used Car Prices Drop But Older Vehicles Keep Value

AutoExec Summary
The cost of living crisis is causing older used cars to become more expensive as bargain hunters drive up prices. While late-model used cars are decreasing in price due to a better supply of new cars, older hatchbacks and sedans are in high demand. Data from Moody’s Analytics, Cox Automotive Australia, and Pickles shows that older, more affordable used vehicles are experiencing a surge in demand. High inflation and economic pressures are leading consumers to opt for lower-cost vehicles, with prices for used passenger vehicles aged 8-10 years up by 66.7% since December 2019. Despite an overall decline in used car prices, the availability of used cars has increased, putting downward pressure on prices. High interest rates have also impacted the market, leading to a decrease in demand for used vehicles. Dealer inventories of used cars have grown, with SUVs making up nearly half of the market. The used electric vehicle market is experiencing volatility, with recent price cuts and new models affecting resale values.

Brands mentioned: MG, Tesla, Hyundai, Nissan