More Australians are selling their cars to help ease cost of living pressures, with prices for some used models soaring.
Since the start of the pandemic, used car prices have increased by 79%, and if you have an Audi RS7, Mercedes G or Toyota Hilux, you could be sitting on a goldmine.
The value of the 2021 Hilux has increased by 136%, from $29,000 in June 2021 to $68,500 in June 2022.
With Australian inflation at 6.1% – the highest in two decades – some people find the key to financial stability may be in their garage.
According to 2021 census data, 55.1% of Australian households own two or more vehicles, and some are now giving up their second car, while others are going carless altogether.
One of those who made the decision to sell their only vehicle is Milli Ogden, who as well as dealing with rising prices is also saving up for her wedding.
Milli Ogden (pictured) sold her car to meet the rising cost of living and to save for her wedding
The value of the 2021 Toyota Hilux has increased by 136%, from $29,000 in June 2021 to $68,500 in June 2022
With inflation still on the rise, many are finding that selling their second vehicle can unlock greater financial freedom by reducing day-to-day running costs such as maintenance, registration, insurance and fuel.
car sales site rubber cars revealed the price Australians can expect to get for their used car and how they can make the most of soaring used car prices.
The site named the brand’s most valuable models in each category for 2022, with top sellers including: Audi RS7 ($104,000), HSV GTSR ($184,000), Mercedes G ($241,000), RAM Ute ($121,000). $000), Volkswagen CC ($68,000) and Range Rover Velar ($120,000).
Gumtree found that newer cars saw the biggest increases, with 2021 models up 11% overall compared to 2020 cars, which rose 7% from June 21 to June 22.
Hatchbacks rose 40% from an average of $21,499 to $30,000, but coupes more than doubled that rate, rising 96% from $36,650 to $72,000.
While the Utes as a whole didn’t fare as well – they still rose 12% from $59,900 to $67,000 – some models rose dramatically.
The 2021 Toyota Hilux saw the largest year-over-year increase from June 2021 to June 2022, increasing 136% from $29,000 to $68,500.
Milli Ogden (left, with her fiancé) sold her car a year ago and is using the savings to pay for her upcoming wedding
The The 2021 Toyota Landcruiser Prado rose 99% from $41,500 to $82,500 over the same period, while the The 2021 Toyota Rav4 was up 34% from $42,500 to $57,000.
An older car, the 2020 Nissan Navara, rose 32% from $42,500 in June 2021 to $56,000 in June 2022.
Make tough decisions in tough times
Nearly 900,000 Australians are now working multiple jobs to make ends meet.
It is the highest figure since the Australian Bureau of Statistics began recording the issue in 1994.
Many of them are now discovering that selling a car, which is often their most prized possession, could be a big step towards financial security in difficult times.
When Selling Your Car Makes Financial Sense
Milli Ogden, 34, moved to Surry Hills in Sydney city center in 2020 and struggled to park in the area.
She often ended up with parking fines because she didn’t have a permit and having to move her car every few hours became a huge problem.
Growing up in the countryside, she always thought she needed a car, so she was reluctant to do without it for a long time.
But after going through the pandemic, she noticed that her car sat idle for days and was tired of having to cover all the running costs such as green slips, pink slips, insurance and fuel when she wasn’t. didn’t use it as much.
A year ago, she noticed the used car market was very strong, so she decided to bite the bullet and list her car on Gumtree Cars and test drive zero for six months.
Twelve months later, she is very happy with this decision and has not bought a new car.
Ms Ogden said she really noticed the difference in the amount she was able to save by not having a car, which helped her take a few holidays and save for her wedding.
When she needs a car for longer trips or weekend getaways, she rents one.
While she initially feared feeling a lack of freedom by not having a car, she said it didn’t work out that way and she could get around properly using public transport or services. carpooling.
Why Milli Ogden, 34, sold her car
What brand and year of car did you sell?
My car was a Kia Rio model 2006 and I sold it in March 2021
How much did you pay for it and how much did you get?
It was the first (and only) car I ever owned and I bought it for $17,600. I then listed it on Gumtree in February 2021 and sold it for $2500, but received higher offers due to demand at the time.
Was it new or used when you bought it?
I bought my car new from my local dealership and sold it as a partner and moved closer to town and didn’t really use it.
With no in-town parking permits and no access to off-street parking, the cost and time of regularly moving it every two hours or paying parking fees just didn’t add up.
Millie Ogden (pictured right) and her fiancé (left) have been able to afford an overseas vacation to the Maldives since she sold her car
Did selling it help save for your wedding?
The savings I have since made on rego, upkeep and car upkeep have helped launch our wedding fund and allowed us to splurge on other things like vacations abroad to the Maldives and the purchase of our first dog.
Did you find carpooling convenient?
It has certainly been – perhaps too convenient. Living close to town as well as the surrounding beaches and suburbs means that the money I would otherwise have spent on gas and parking, I now factor into my budget to help cover transportation costs .
Have you rented a car a lot since you sold yours?
Since I can drive, I have had a car, so selling my first and only vehicle was a big decision. Having the ability to create a GoGet account has made it much easier to adjust to catching up with family and friends, enjoying weekends, or even having the added flexibility of a car for running errands.
Do you use buses and trains?
Fortunately, we live very close to a tram stop, so I can get to town in 15 minutes. We are also within walking distance of a major train station and buses are also nearby.
While it’s not always as convenient as grabbing your car keys and hopping in your own car, with a little planning I can still get around quite easily and save some money at the same time.
Have you had any regrets since selling your car?
I was really surprised at how long I managed without a car and even though sometimes I missed having my own set of wheels, seeing the savings increase in my bank account definitely helped keep me motivated and save for my wedding.
Used cars have exploded in value during the Covid-19 pandemic, increasing by a phenomenal 79%
Car sales site Gumtree Cars has revealed the price Australians can expect to get for their used car and how they can make the most of soaring used car prices
Toyota Landcruisers are in high demand. 2021 Toyota Landcruiser Prado up 99% from $41,500 to $82,500
Most valuable branded models by body type, Australian sales January-June 2022
1. Bentley Continental – $383,000
2. Ferrari California – $240,000
3. Ferrari 360 – $181,000
1. Aston Martin DBS – $550,000
2. Ferrari 599 – $450,000
3. Ferrari 458 – $415,000
1. Audi RS7 – $104,000
2. Tesla Model S – $103,000
3. Mercedes AMG A35 – $83,000
1. HSV GTSR – $184,000
2.Mercedes S450 – $180,000
3. Ford Landau – $140,000
1.Mercedes G – $241,000
2. Mercedes AMG G – $180,000
3. Tesla Model X – $149,000
1. RAM – $121,000
2.Mercedes G – $105,000
3. HSV GTS – $101,000
1. Volkswagen CC – $68,000
2. Mercedes 190 – $65,000
3.Mercedes 200 – $64,000
1. Range Rover Velar – $120,000
2. Audi SQ7 – $119,000
3.Mercedes C63 – $115,000