How to capitalize on the booming used car market
There is never a bad time to reward yourself with buying a new car, something that will make you happy every time you look at it (much like a kid, except you can ditch it if you are fed up with it. to play with). And there’s never been a better time to sell your car, especially if you’ve got a spare or two lying around.
A shortage of new cars available in Australia and around the world, due to a global semiconductor shortage following COVID-19-related outages, has resulted in long wait times for anyone looking to purchase a new one. vehicle, which has driven up the value of used cars in an unprecedented way.
At the bottom of the scale, used vehicles like the sporty Subaru BRZ or the alluring Mazda 3 have doubled in value. If you’re lucky enough to have a Toyota RAV4 in the driveway, people will bite your arm for it, and many are willing to pay over A $ 30,000 for a brand new car that costs A $ 31,695. , if you can get one. – the average waiting time for one of them has now swelled beyond six months.
Cars for enthusiasts
However, it is the more sought after metal market that has really taken off. In addition to car enthusiasts who spend a lot of time shopping on the internet and wonder what to do with the money they would normally spend on trips abroad, this has also been motivated by people who don’t had never really considered buying a dream car before.
David Nankervis, co-founder and managing director of Trading Garage – which was fortunate enough to launch earlier this year and has been inundated with business ever since – says one of the hottest parts of the market is what it calls it “cars that appeal to the non-car enthusiast”.
“What we’re seeing are people spending what you might call emotional money, maybe to boost morale or reward themselves. So you’ve got things like Volkswagen Kombis looking for crazy money, Porsche money, to people who grew up wanting one, and suddenly decided the time was right, ”says Nankervis.
“It’s not just the people who would normally be in Aspen, the people you normally see collecting or selling premium cars, it’s everyone. The family that can’t go to Bali, or can’t tour the country in a 4×4, or even go camping – buying yourself the car you’ve always dreamed of is something you can always do.
Combi for sale?
Selling prices for the eccentric Kombi topped AU $ 200,000, while even the less popular “split-window” versions hit as high as AU $ 145,000.
There is also a lot of interest on the Hollywood side of the market, of course, with cars like the famous “Eleanor” on the big screen – the Ford Mustang from. I’m going in 60 seconds. Trading Garage, which makes sellers’ lives easier by charging them nothing on the list and no commission (the successful buyer pays a fee of six percent on the sale price, up to a maximum of AU $ 10,000), sold two Eleanors this year, one for A $ 180,000, the other for A $ 220,000.
Surprisingly, one of the most profitable and fastest growing brands this year in Australia has been HSV. Holden’s raw, cashed nameplate is no longer built here and is quickly becoming a collector’s item.
“HSVs are the biggest earners. In January 2020, there was an A $ 199,000 HSV W1 in line with 1,000 miles, and in six or eight months it was a A $ 350,000 to $ 400,000 car, ”says Nankervis with genuine disbelief. .
The company that was fortunate enough to list this HSV was Dutton Garage in Melbourne, an auction house more traditional than the online Trading Garage. Co-owner Jeff Dutton even says he was shocked by the performance of the HSVs.
“We have been very successful with the HSVs. We had 160 of all kinds – even the Maloo ute – and they were all gone in six months. It was like a frenzy for some reason. They really allowed us to get through the first blockages, ”he shares.
If you’re lucky enough to own one, Dutton says someone has probably already offered to buy it from you, but now is a great time to sell it.
Rare plates market
Really insane money is being offered to those with more classic nameplates in the garage, with prices for Ferraris, Porsches, Bentleys, Rolls-Royces and some Mercedes-Benz vehicles really catching fire this year.
“Every time we think the market has peaked, that it just can’t go higher, it explodes again,” reveals Nankervis. “Even the rare license plate market is out of control.
“There are people who put away a bunch of cars 10 years ago, and now this year they are really reaping the rewards and indeed look like very wise investors.”
Dutton says that if you have any particularly collectable Ferraris in the hangar – an F40, a Testarossa, the F430 or even the more modern classic, a 458, the latest of the famous Prancing Horse’s non-turbo V8 supercars – you’re gonna get a incredible price.
If you own a Porsche 356 Speedster, a beautiful machine from the 1950s, Dutton will probably cry while looking at it. He remembers selling them for $ 1,500 when today a voucher will net you A $ 600,000 to A $ 700,000.
“Of course if you’ve got something like a Lamborghini Countach you’ll do just fine. I remember buying a Miura for A $ 60,000, and these things are worth millions now – wish I had kept it so I could. sell it now, ”he sighs regretfully.
Read more : Luxury expert explains why watches are a smart investment in a pandemic