The staggering surge in used car prices since the pandemic hit

Used car prices have surged by a staggering 65 per cent since COVID-19 hit.

Statistics from Moody Analytics reveal used car prices have climbed by 18 per cent since the end of 2021 alone.

CEO of the Motor Trades Association of Australia, Richard Dudley, says the global semi-conductor chip shortage has impacted production of new cars of all makes and models, forcing people to look to the second-hand market.

“In some cases, such as 4WDs, they’re as scarce as anything,” he told Stephen Quartermain and Elise Elliott, filling in for Ross and Russel.

Some Australians who’ve recently purchased cars are receiving calls from dealers offering to buy back the vehicles for as much as they were originally purchased for.

But Mr Dudley urged caution if deciding to sell back to a dealer.

“I know people who have cashed in late market cars … but they’ve gone looking for the replacement vehicle and found they can’t get one,” he said.

Press PLAY below to hear what’s driving the staggering price surge