Trade Me: The median price of used cars rises to $3500 over the past two years

In the past two years, the cost of purchasing a used vehicle has risen dramatically. Trade Me cars data shows that the median selling price has increased from $9974 to $13,494. Jayme Fuller, Trade Me Motors's director of sales, stated that the median asking price for a New Zealand used car has increased by almost $2500 in the last year.

The result is that Kiwis can sell their used cars for more than what they originally paid, even though they have added more miles. Fuller stated, "Anyone can tell you that your car starts losing money as soon as it leaves the dealership. And traditionally, cars have been known to be depreciating assets."

"Our latest data suggests that this is no longer true, with many Kiwis making money from their used cars." - TradeMe Motors

There is a catch. If you need to keep your car, you will have to go back to the market. Fuller explained that the price rise was due to many global factors. Fuller stated that there have been "continuing global shortages on the market" which has led to a decrease in supply of new and used cars entering the country.

"When we compare July 2019 with July 2019, before the pandemic, there was a 27% drop in the number of cars listed on-site in July." - TradeMe Motors

Many New Zealanders are unable to travel abroad so they have used their travel funds to buy big-ticket items like a car. Fuller stated that "low supply and high demand have put tremendous pressure on the market, driving up prices."

All options, even those with higher prices, have seen price increases.

"For cars above $15,000, the median asking prices increased 12 percent in July compared to the same month in 2019. While cars over $25,000 saw an 11% jump in the same period."

According to data, the 2016 Toyota Hilux was valued at $39,490. This is a 9 percent increase over 2019. We're also seeing Kiwis rush to buy Hiluxs before the government's Clean Car Scheme goes into effect next year. They face additional charges for utes. Fuller stated that this will undoubtedly play a role in the price rise of this make. It was difficult to predict where prices would go in the next year due to the uncertainty in the market.

News Article Source: NZ Herald