Australians who are struggling financially sell their Cars For Cash.
According to new research, the average price of a used car in Australia has decreased for the past six months. This is good news for people who couldn’t afford a car in the hot market.
Things aren’t exactly ‘normal’ just yet.
For example, the average Used Vehicle price is still 55% higher than in January 2020, right before COVID wreaked havoc. The epidemic reduced the availability of new autos, while inflationary forces widened the bite. These two reasons increased demand for used vehicles, which drives up costs in simple economic terms.
Used cars for sale
Since the Reserve Bank of Australia (RBA) raised interest rates for the first time in May last year, the number of postings has increased. This happened at the same time that the cost of living increased significantly.
“The canary in the coal mine” is still a sign of financial stress for people hardest hit by rising rates and inflation.
Few households struggle to make ends meet, and many caravans are on Facebook Marketplace and Gumtree as inflation bites.
One-third of Australians are tenants who are suffering from rising rents. One-third of Australian households have mortgages and are being (or will be) crushed by rising mortgage rates. The other one-third of Australian households mostly made up of older people, own their homes outright, have saved a lot during the epidemic, and are now benefiting from higher deposit interest rates.
The first two categories are more likely to liquidate assets to make ends meet, while the third group is more likely to spend on a new car.
For more information about Cash For Cars, call 0406 996 661/ (08)6252 8500.
