Trade Me: Median price for used cars spikes $3500 in two years

Second-hand car prices have jumped up dramatically. Photo / Supplied

The cost of buying a used car has skyrocketed over the last two years.

Trade Me data shows the median selling price lifted from $9974 in July 2019 to $13,494.

Trade Me Motors sales director Jayme Fuller said in the past year alone, the median asking price for a used car in New Zealand has increased by nearly $2500.

This has created the unusual phenomenon where Kiwis could sell a used car for more than they originally paid, despite adding more kilometres to the clock.

"Anyone will tell you that you start losing money on your car as soon as you drive it out of the dealership and traditionally cars have been well known to be depreciating assets," Fuller said.

"However, our latest data shows that's no longer the case, with many Kiwis actually making money on their used cars."

The catch, of course, is that if you still need a car, you'll have to return to the inflated market to replace the vehicle you sold.

Fuller attributed the sharp increase in price to a number of global factors.

"Ongoing global shortages in the market have meant there has been a drop in supply of both new and used cars entering the country," Fuller said.

"When compared with the same month in 2019, prior to the pandemic, we saw a 27 per cent drop in the total number of cars listed onsite in July."

With New Zealanders unable to go abroad, many have also redirected their travel funds to purchase big-ticket items, like a new car.

"This combination of low supply and high demand has put enormous pressure on the market and is driving prices up," Fuller said.

The price increases have been seen across the board, including with more expensive options.

"For cars over $15,000, the median asking price increased 12 per cent in July when compared with the same month in 2019, while cars over $25,000 saw an 11 per cent jump in the same period."

The data showed that 2016 Toyota Hilux was currently sitting at $39,490, up 9 per cent from 2019.

"We're also seeing Kiwis flock to buy a Hilux before the Government's Clean Car scheme comes into effect next year and they face extra charges on utes. This will no doubt be playing a part in the price growth of this make," Fuller said.

Given the current uncertainty in the market and continued global supply issues, it was unclear at this stage where prices were likely to go in the coming year.