The most soaring used car prices - A frustrated Aussie says it made him throw the car away
More and more Aussies are selling their cars to help ease cost of living pressures, with prices for some used models booming.
Since the start of the pandemic, used car prices have risen by a phenomenal 79 percent, and if you own an Audi RS7, Mercedes G, or Toyota Hilux, you could be sitting on a gold mine.
The 2021 Hilux has increased in value an incredible 136 percent from $29,000 in June 2021 to $68,500 in June 2022.
With Australian inflation now at 6.1 per cent – the highest in two decades – some find the key to financial stability could be in their garage.
According to 2021 census data, 55.1 per cent of Australian households own two or more vehicles, and some of them are now abandoning their second car, while others are completely car-free.
One of those who decided to sell his one-of-a-kind vehicle was Milli Ogden, who besides facing rising prices was also saving up for his wedding.
Milli Ogden (pictured) is selling her car to help cope with rising living costs and saving for her wedding
The 2021 Toyota Hilux has increased in value an incredible 136 percent from $29,000 in June 2021 to $68,500 in June 2022
With inflation still rising, many are finding that selling their second vehicle can unlock more financial freedom by reducing day-to-day operating costs such as service, registration, insurance and fuel.
Car sales site Gumtree Cars has revealed the prices Australians can expect to get their used cars for, and how they can take advantage of skyrocketing used vehicle prices.
The site has named the most valuable models in each category for 2022, with top sellers including: Audi RS7 ($104k), HSV GTSR ($184k), Mercedes G ($241k), RAM Ute ($121k), Volkswagen CC ($68k) and Range Rover Velar ($120k).
Gumtree found new cars have seen the biggest increase, with 2021 models up 11 percent overall compared to 2020 cars, which increased 7 percent from June 21 to June 22.
Hatchbacks increased by 40 percent, from an average of $21,499 to $30,000, but the price of the coupe more than doubled, increasing 96 percent from $36,650 to $72,000.
While the Utes overall didn’t do well – they still increased by 12 percent from $59,900 to $67,000 – some models improved spectacularly.
The 2021 Toyota Hilux saw its biggest year-over-year increase from June 2021 to June 2022, up 136 percent from $29,000 to $68,500.
Milli Ogden (left, with her fiancé) sold her car a year ago and is using her savings to pay for her upcoming wedding
It The 2021 Toyota Landcruiser Prado increased 99 percent from $41,500 to $82,500 over the same period. 2021 Toyota Rav4 increases 34 percent from $42,500 to $57,000.
The older car, the 2020 Nissan Navara, increased 32 percent from $42,500 in June 2021 to $56,000 in June 2022.
When selling your car makes financial sense
Milli Ogden, 34, moved to Surry Hills in downtown Sydney in 2020 and struggled with parking in the area.
He often ends up with parking fines because he doesn’t have a permit and having to move his car every few hours becomes a huge hassle.
Having grown up in the countryside, he always had the mindset that he needed a car, so he was reluctant to go without it for long.
But after going through the pandemic, he saw his car would be idle for days and was getting sick of having to cover all the running costs like green slips, pink slips, insurance and fuel when he wasn’t using them as much.
A year ago, he saw the used car market was very strong, so he decided to bite the bullet and register his car at Gumtree Cars and test the car free for six months.
Twelve months later, he is very happy with the decision and has yet to buy a new car.
Ms Ogden says she really sees a difference in how much she can save by not owning a car, which has helped her go on vacation and save for her wedding.
When he does need a car for longer trips, or a weekend getaway, he rents it.
Although she initially feared she would feel a lack of freedom by not owning a car, she said it didn’t work and she was able to get around well using public transport or ride-sharing services.
Why Milli Ogden, 34, sold his car
What brand and year of car are you selling?
My car is a 2006 Kia Rio and I am selling it in March 2021
How much did you pay for it and how much did you get for it?
This is the first (and only) car I have ever owned and I bought it for $17,600. I then listed it on Gumtree in February 2021 and sold it for $2,500, but received a higher bid due to demand at the time.
Was it new or used when you bought it?
I bought my car new from my local dealer, and sold it as my partner and I moved closer to town and didn’t really use it.
Without having a city parking permit and without access to off-street parking, the costs and time involved in moving it regularly every two hours or paying parking fees will not add up.
Millie Ogden (pictured right) and her fiancé (left) have been able to take an overseas vacation to the Maldives since she sold her car
Does selling it help save for your wedding?
The savings I’ve made since rego, car maintenance and servicing have helped kickstart our wedding fund and allowed us to splurge on other things like an overseas vacation to the Maldives and buying our first dog.
Have you felt comfortable using rideshare?
That’s for sure – maybe too comfortable. Living close to the city as well as the beaches and surrounding suburbs means that the money I should have spent on gas and parking, I now consider my budget to help cover transportation costs.
Have you rented a lot of cars since selling your car?
Ever since I could drive I have owned a car so selling my first and only vehicle was a big decision. Having the option to create a GoGet account has made customization easier to catch up with family and friends, enjoy the weekend or even have the added flexibility of a car to run errands.
Do you use buses and trains?
Luckily, we live very close to a tram stop, so I was able to get to the city in 15 minutes. We were also walking distance to the main train station and buses were close too.
While it may not always be as comfortable as picking up your car keys and hopping in your own car, with a little planning, I was still able to get around quite easily and save money at the same time.
Have you had any regrets since selling your car?
I’m really surprised at how long I’ve managed to be without a car and sometimes I miss having my own set of wheels, seeing savings grow in my bank account definitely helps me stay motivated and save for my marriage. .
Used cars have exploded in value during the Covid-19 pandemic, up a phenomenal 79 percent
Car sales site Gumtree Cars has revealed the prices Australians can expect to get their used cars for, and how they can take advantage of skyrocketing used vehicle prices.
The Toyota Landcruiser is in great demand. 2021 Toyota Landcruiser Prado increases 99 percent from $41,500 to $82,500
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