Want a Toyota LandCruiser? You won’t find one in a Toyota dealership, at least not a new one.
Unprecedented demand and a temporary halt in manufacturing due to the global semiconductor shortage challenging most brands means dealers have run out of stock.
So if you’re planning the big adventure and a LandCruiser is at the top of your list then your only option will be a used one.
The LandCruiser isn’t the only model to be affected by the current (and temporary) mismatch of supply and demand. Some versions of the Toyota RAV4 also have people queuing to own one.
Again, if you want one now then your best option could be to look around at second-hand options.
The challenge for car makers is unprecedented and at times unpredictable demand.
When COVID became a pandemic in 2020 the industry was sent into a panic.
Forecasts of economic disaster took hold, prompting some to slash production. Others struggled to keep factories running due to government-imposed lockdowns.
But as we now know the economic uncertainty was shortlived for most of the world.
And for many people all those lockdowns meant they were no longer spending money travelling.
Coupled with record low interest rates it meant the prospect of a new car looked more tempting than ever.
Cue that unprecedented demand.
The challenge of sourcing a new car means that for many people a used car is a better option.
Prices edging up
Another reason to consider used is how much a new car will cost you.
Prices of new cars have been steadily increasing for about a decade.
A new Toyota Corolla today is about 10 percent more than it was five years ago.
Getting into a brand new Volkswagen Golf today will cost about 25 percent more than it did in 2016.
And a Hyundai Tucson has edged up about 20 percent.
Price increases in the luxury market are just as pronounced.
A BMW X3 was about $68,000 in 2016. Now it’s more like $82,000.
And the Mercedes-Benz A180 that could once be snapped up for less than $40K is now $55K.
It’s true many used car prices have also increased, but not to the same extent.
It makes used cars that little more appealing.
Depreciation still hurts
Depreciation is typically the biggest cost in owning a car. And the single biggest hit with depreciation is when you drive a new car off the showroom floor.
A brand new car can easily lose 10-20 percent of its value in the first year. On a $30,000 small car that’s up to $6000 in depreciation. And the more expensive the car, the greater the potential losses.
Buying a used car means you’ve neatly made the big initial cost someone else’s.
You can settle into your pre-loved used car knowing that it’s unlikely to depreciate at anywhere near the levels of something brand new.
Can’t afford that flashy new luxury car or 4WD you’ve been dreaming of?
Then why not consider a used one?
Used cars allow buyers to get more features or a bigger car than they would have been able to afford if they were buying new.
Suddenly that more powerful engine or smarter-looking alloy wheels could be within reach if you’re prepared to buy something that someone else has owned previously.
And here at Cars24 every car we sell has been through a 300-point inspection to ensure it’s not only great value but also in great condition.
As well as the manufacturer’s factory warranty we also have our own six-month warranty for added peace of mind.
Better protected than ever
That brings us to another pertinent point of why it may be prudent to consider a good quality used car: the warranty.
Car makers have been increasing their factory warranties to the point where most brands offer at least five years of coverage.
Some brands stretch that standard factory warranty to seven years, which means that other than consumables such as tyres and brakes pads, any other unexpected failures should be covered by the manufacturer (provided the car has been serviced and the terms of the warranty met).
That means that many of the cars on the Cars24 website are still covered by a factory warranty – as well as our own warranty.
Add to that an increased focus on this area from the Australian Competition and Consumer Commission (ACCC) and it means car buyers are better protected than ever.
The new car market is changing. V8 engines are gradually being phased out of many models and buyers are increasingly turning to SUVs.
Dozens of cars have disappeared from the market over recent years: the Subaru Liberty, Ford Mondeo, Holden Commodore and Nissan Pulsar, to name a few.
But all of those – and more – are still available on the used car market.
In fact you’ve got many more choices of makes, models and body styles if you’re prepared to look at a used car.