2024 Outlook: Will the Surge in Australia’s Used Car Prices Continue? A Comprehensive Analysis

Have you noticed the sharp increase in used car prices across Australia in recent years? From locally sourced vehicles to imported used cars from Japan, several factors have contributed to this rise, and as of 2024, prices in the used car market are still climbing. Whether you’re looking to buy a car in Australia or considering importing one from Japan, it’s crucial to understand the current situation and what the future might hold.

In this article, we’ll break down the state of the used car market in Australia, the factors driving up prices, and the outlook for the coming years. This information will be useful whether you’re looking to buy a car soon or thinking about the best time to sell.

The global semiconductor shortage has hit new car production hard. Cars today rely heavily on electronic systems, from engine management to safety features, all of which need semiconductors. With these in short supply, new car production has slowed, leading to longer wait times for new vehicles.

In Australia, where many cars are imported, this has had a significant impact. As new cars become harder to get, more people are turning to the used car market, increasing demand and pushing prices higher.

Japanese brands like Toyota and Honda are especially popular in Australia’s used car market, and with demand far outpacing supply, prices are climbing even further.

Australia has a strong market for imported used cars from Japan, particularly fuel-efficient hybrids, small cars, and compact vehicles. With the current weakness of the Japanese yen in 2024, importing cars from Japan has become more cost-effective, which has only heightened demand.

Popular models like the Toyota Prius, Aqua, and Honda Fit are highly valued for their fuel efficiency, especially as petrol prices rise in Australia. However, these vehicles are also in high demand within Japan, meaning that the supply available for export is limited, which further increases prices for imported cars.

Like the rest of the world, Australia has seen significant rises in fuel prices, which has led to a higher demand for fuel-efficient vehicles. In urban areas, where many people rely on cars for daily commuting, saving on fuel has become a priority.

As a result, hybrid vehicles and electric cars (EVs) have seen a surge in popularity in the used car market, driving their prices up. Small cars and compact vehicles are also in high demand, intensifying price competition and making timing crucial when buying.

Australia’s vast distances between major cities drive up transportation costs. In regional areas where the supply of used cars is limited, these logistical costs contribute to higher sales prices.

Additionally, the ongoing effects of the COVID-19 pandemic, including lockdowns and global supply chain disruptions, continue to impact the flow of imported vehicles into Australia, adding further instability to the market.

The semiconductor shortage is expected to persist through 2024 and beyond. Although efforts are underway to ramp up production, it could take several more years before new car production fully recovers. Until then, the demand for used cars is likely to remain strong, keeping prices high.

As long as the Japanese yen remains weak, demand for imported used cars from Japan is expected to increase. In particular, fuel-efficient cars and low-maintenance vehicles like hybrids and small cars are highly sought after in Australia.

For those considering buying an imported car, Roundabout Australia is a dealer worth exploring. Roundabout Australia eliminates the middleman, allowing consumers to purchase high-quality used cars directly from Japan at competitive prices. If you’re thinking about buying a Japanese import, Roundabout Australia offers a cost-effective and reliable option.

Fuel prices are likely to remain high in the coming years, which means demand for fuel-efficient cars will continue to grow. This trend is expected to push up the prices of hybrids, EVs, and other fuel-saving vehicles in the used car market.

To get the best price when selling your car, it’s a good idea to get quotes from multiple dealers. Imported Japanese cars are particularly popular in Australia, so you may be able to find higher offers by playing dealers against one another.

Online valuation tools can also help you gather multiple estimates quickly, allowing you to secure the best possible price.

Maintaining your car in good condition and selling at the right time can significantly increase its value. Simple things like keeping the exterior and interior clean, making small repairs, and selling before your car is due for major services or changes in models can help you fetch a higher price.

Australia’s used car market has been heavily impacted by global semiconductor shortages, rising fuel prices, and increased demand for imported vehicles from Japan. For those looking to buy or sell, it’s important to stay informed and act at the right time.

Japanese cars continue to dominate the Australian market, and with ongoing currency fluctuations, they remain a popular and valuable option. If you’re looking to purchase a used Japanese car, consider working with Roundabout Australia, a dealer that cuts out the middleman to offer high-quality cars at competitive prices. By eliminating extra costs, Roundabout Australia ensures that you can get the most value for your money.

Keep these factors in mind, and you’ll be well-equipped to make the most of your next car purchase or sale in Australia.