The second-hand car market in Australia is booming due to COVID-19 pandemic-driven supply chain issues and surging prices – leaving Australians out of pocket, overwhelmed and confused, according to Allianz Australia's latest research.
It found that Australians have been seeking to buy second-hand cars more than before to save money (52%) or to be more sustainable (21%). However, one in five people (20%) admitted that they had a negative experience when buying a second-hand car, not only because of soaring second-hand car prices in Australia.
Instead, Allianz's report found that even though customers spent an average of 22 hours researching before purchasing a second-hand car, 97% were still confused when opting to buy a car privately. Meanwhile, 82% who purchased through a private seller faced additional costs, such as immediate mechanical repairs after purchase (29%) or extra registration costs due to where they live (27%), with nearly 2% paying over $700 and 18% paying over $1,000 extra.
As a result, Allianz has developed the Private Buyer's Manual to help Australians looking to buy second-hand cars via a private seller. The manual contains useful information and tips to help buyers from the research phase to purchasing the car and getting insurance.
“At Allianz, we understand that purchasing a second-hand car can be overwhelming and confusing. When you add the additional layer of surging prices and supply chains pressures thanks to the pandemic, the complexities mount,” said Michael Winter, chief general manager, consumer from Allianz Australia.
“While most of the nation is doing substantial research when buying a second-hand car, we're finding most people still find the process confusing. We want to support our customers to make informed decisions beyond their insurance matters; this manual seeks to pull together the information needed when purchasing a second-hand car privately into one tangible resource.”
Some of the tips included in the Private Buyer's Manual include:
Meanwhile, for those looking for brand new but affordable cars, the Royal Automobile Club of Victoria (RACV) recently listed the most affordable new cars in Victoria to help consumers understand the monthly costs of various vehicles.
RACV's Annual Operating Costs Survey in September 2021 showed that the MG3 light hatchback was the cheapest car in the Victorian market, costing owners only $626.50 a month. It was followed by the Kia Picanto S at $662.93 a month and Kia Rio S at $705.71 a month.
By contrast, Nissan's Patrol Ti upper-large SUV was the most expensive car to own and run in the state, costing owners $2,337.33 monthly to keep on the road. It has a V8 petrol engine and is priced from $85,738 before on-road costs.
