The ‘whole stack of problems’ which mean used car prices will remain high

Used car prices, which skyrocketed during the pandemic, are likely to remain elevated for at least the rest of 2022.

Carsales.com reports used car prices are 30 to 40 per cent higher than they were pre-pandemic.

CEO of the Motor Trades Association of Australia, Richard Dudley, says it’s “being caused by a whole stack of problems”.

“It is the semi-conductor issue, it’s the delicate nature of the supply chains to the auto industry,” he told Ross and Russel.

“The lack of containers whereby parts can go from where they’re manufactured to the place of assembly of the motor vehicle.

“All of those are contributing to ongoing supply problems – anywhere between six and 12 months on some models – and that’s flowing through to people saying ‘Nope, can’t wait. I’ll go and get a used car’.”

Press PLAY below to hear more about the problems driving up car prices