Wholesale used-vehicle prices rose to all-time highs across Australia in June. Following a record-breaking monthly increase in May, June doubled down on the historic gains. Used vehicle prices were up 11% from May to June and a mind-boggling 23% from the lows reached in April, according to the Datium Insights–Moody’s Analytics Price Index (see Chart 1 below).
Key points from the attached report are as follows –
- Australian wholesale used vehicle prices are up 23% from the lows reached in April.
- Wholesale prices rose only 23% from the depths of the 2008-2009 global financial crisis to the beginning of 2020.
- Demand for vehicles remained high as the economy re-opened in earnest and public transportation remains an unattractive option.
- Both new and used vehicle supply remains low, pushing up prices of available inventory.
- Price decreases are expected over the next two quarters.
- Prices will be pushed down because of more vehicles reaching the market and labor market concerns sapping consumer demand.
It appears to be a global phenomenon.
With public transport buggered for good, second car purchases are the driver, I’d guess.