Key Points
- Buyers continue to struggle to find used cars in Australia.
- Used car prices are slowly returning to normalcy, but the options are still limited, claim buyers.
Mr Singh welcomed his cousin Ajay Kumar to Australia over two months ago.
Since then, he has been actively looking for a suitable drive, but his search has ended nowhere.
"It is a real struggle. When the car suits your budget, it isn't in the right condition, and when the condition is good, it is usually out of pocket," he rues.
Secondhand or used car prices, which had skyrocketed during the pandemic, are slowly decreasing with an improvement in the supply of new cars and their components.
But Mr Singh argues that while the market is gradually improving for buyers, the options for those looking for affordable vehicles are still limited.
"I am worried for my cousin. It is hard to survive without a car in this country. He has to let go of job opportunities, especially when it's located in an area with no train station or lesser connectivity," he says.
Sandeep Bakhli from the car rental industry says affordability isn't the only factor determining a buyer's choice.
"It is equally important to check the car's condition before you pay for it. So I always ask buyers to get the vehicle inspected by a mechanic before putting money into it.
"Buyers should also be doubly cautious before buying a car at private auctions or social media platforms," he warns.
According to Moody's Analytics, used car prices reached record highs but may drop by 11% or more in 2023 due to rising interest rates and increased cost of living.
But Mr Bakhli says that is highly unlikely.
"In my opinion, the prices are likely to remain high due to the shortage of components and on the back of the Russia-Ukraine war," he says.
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