Most of you would have noticed that car prices have gone up significantly over the past two years. But how much have they gone up exactly? Let’s take a look.
You’re not imagining things – both new and used vehicle prices have gone up over the past two years (not to mention, house prices, petrol, groceries – everything, it seems, except wages).
Reasons for car price hikes include supply issues stemming from a semiconductor shortage, increases in cost for raw materials, complications around shipping and parts procurement, factory shutdowns and other pandemic-related issues.
But just how much have these disruptions sent car prices up? And what options are available if you need help financing your next purchase?
Let’s take a look.
New car price increases
The price of new cars has gone up as much as 25% since before the pandemic, according to an ABC article quoting website pricemycar.com.au.
A detailed analysis of 1100 models by goauto.com.au meanwhile calculates that as of March 2022, the average price of a new car is up 7.6% since pre-pandemic times.
However, it varies a lot from manufacturer to manufacturer, and even model to model.
For example, some models such as the Toyota Yaris have gone up by as much as 37% ($7290 extra).
Here’s how much some of the more prestigious manufacturing brands have increased prices:
Land Rover: 9.01%, Audi: 8.59%, BMW: 8.42%, Jaguar: 5.33%, Lexus: 3.36%.
And here’s how much some of the more mainstream manufacturers have increased prices:
Volkswagen: 9.83%, Hyundai: 9.06%, Jeep: 8.91%, Nissan: 8.59%, Toyota: 7.70%, Fiat: 7.21%, Mitsubishi: 6.80%, Renault: 6.60%, Subaru: 6.00%, Citroen: 5.93%, Mazda: 5.30%, Ford: 2.73%.
Used cars
It appears that because of the wait times for new cars (due to supply constraints), used car prices have gone up even more.
Used cars have risen 50%, Datium Insight’s price index in this ABC article shows.
Meanwhile, car valuation expert Redbook.com.au estimates a 25 to 35% increase in recent years.
How to finance your next purchase
Been wondering about how your neighbour bought that fancy new car?
Well, there’s a better than even chance they took out finance to purchase it, with Mozo research showing that 52% of car buyers took out a loan to buy a vehicle in the past decade, for an average loan size of $25,000.
And when it comes to timeframes to pay that loan back, while most car loan providers offer a maximum term of up to 7 years, the average loan is usually repaid in the 2-3 year range.
It’s also worth mentioning that if you’re purchasing the vehicle for your business, the federal government’s temporary full expensing scheme can help your business’s cash flow ahead of the financial year deadline of June 30.
So if you’d like to find out more about financing your next vehicle purchase – whether it be for your household or business – get in touch with us today.
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