Used car prices soar in 2021 | Canberra time

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Used car prices in Australia jumped 21% last year, with low inventory and a continued shortage of new vehicles fueling the rise. In its latest report, Moody’s Analytics said prices are expected to rise again in 2022, but by 3.6% more modestly before starting to decline in 2023. “High used vehicle prices will be supported by stable demand and a lack of new vehicles. and used inventory, the company said. “With no way to increase the supply of used vehicles, prices will remain high in the short term.” Australia’s new car market was contained throughout 2021 by slow deliveries as a shortage of semiconductors reduced production across the world. This shortage is expected to ease in the third quarter of this year and as new car production increases, used car prices are expected to decline. “The shortage of new vehicles has been accompanied by a tightening of the supply of used vehicles – drivers are unwilling or unable to trade in their vehicles,” Moody’s Analytics said. “Combined, these trends have created a perfect storm, manifesting in unprecedented prices.” “In short, car owners are sitting tight.” The report says the local COVID-19 situation was also impacting used car prices, which fell in the third quarter of last year amid tight lockdowns in New South Wales and Victoria. . But when those restrictions were eased, household spending and demand for vehicles rebounded, driving prices up again. Australian Associated Press

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