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Used car market begins to drop across Australia



Used vehicle prices have fallen about 13 per cent after peaking last year, giving buyers a chance to snap up a bargain.

Australians turned to buying second hand cars in droves over the past couples of years after a supply shortage in new cars.

Director of content at Drive James Ward said the value of used cars will continue to come crashing down.

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"The used car landscape, especially the new car landscape, is probably as healthy as it has been for the last three years," Ward told 9News.

"During the pandemic, it was crazy and we saw used car prices rise 20 to 30 per cent, purely because there were no new options."

CarCity Property Manager Ari Herzog said they were seeing a fall across both of their sites in Melbourne and Sydney.

"It's certainly come down lots compared to during COVID," he said.

"There was a shortage and lack of supply but now they are being largely resolved.

"There's an increase in supply and lack of demand."

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Australia's most popular cars are SUVs, and three year old Mazda CX-8s and CX-9s have dropped by almost a quarter, making them some of the best-value vehicles on the market.

Skoda Kodiaqs have also dropped about 23 per cent along with Hyundai Palisades and Mitsubishi Outlanders.

Toyotas however exist in their own world, with data showing a three year old Kluger has actually made money, up 1.7 per cent.

"That is sort of unheard of in the automotive world," Ward said.

A huge factor when buying a second hand factory car warranty, Ward said.

He said brands such as Mazda and Kia can have five or even seven year warranties. 

"If you can buy a car that still has two to four years left on its factory warranty, that is great news for you as a family buyer," he said.

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