Is It A Good Time To Sell A Car in Australia?

Is selling your automobile in Australia something you’re thinking about? It’s not a choice most people make every day because of how significant it is. But whether you’re ready for an upgrade or need some additional cash, now could be the best moment to sell your car for the most money. 

There are several things to consider before diving headfirst into the automobile sales process to increase your chances of success. First, if you’re wondering whether now is a good time to sell your car in Australia, we’ll dive into how the economy plays a role. Then, if you’re curious about tonight’s forecast for maximising your profit in an upcoming sale, keep reading!

What Season Should I Sell My Car?

There is a large list of things you can do when selling a car to increase the likelihood of an immediate sale and the amount of money you receive. Unfortunately, just a fraction of the population realises that timing is crucial.

The timing of your sale is one of the most important factors in determining how quickly and for how much you can sell your car. In addition, the time your car spends in storage makes a big difference in how much money you keep or lose.

Is that a preferable time? If you wanna keep things as simple as possible, the optimum time of year to sell your car is whenever your intended audience is actively shopping for one. The following considerations will help us begin to unravel this mystery.

Avoid Dealer Promotions Unless Trading In

At the close of each fiscal year, retailers ramp up their marketing and price cuts to meet or exceed annual revenue goals.

So, when the new version of your car is on sale for less money, many people will choose to buy that instead of a used one, which means that the value of your used car will go down.

But now is one of the greatest times to trade in your old vehicle for a new one, as dealers will be more eager to offer you a competitive price.

The Spring Season Is Ideal For Selling

All good things do indeed appear in the Spring. Around this time of year, Australians emerge from their winter sleep and into a “getting stuff done” mentality, which often includes purchasing vehicles. It’s also the peak season for home sales and purchases. On the other hand, the country effectively closes down over the summer holidays, so winter months such as December and January are best avoided.

Know When Your Target Market Will Purchase

The warmer months see a rise in the sales of convertibles and sports automobiles. As the school year ends in November, many parents look to purchase a car for their diligent son or daughter. This also frequently occurs in early February, when the academic year officially begins.

Gasoline Costs

Larger vehicles are less appealing to buyers when gas prices are high. Conversely, sales of compact, fuel-efficient vehicles tend to increase. For example, when gas was about $1.60 per gallon in 2006, we advertised a 4.7-litre four-wheel drive. Unfortunately, it took us a few weeks to sell the automobile, and we had to lower the price by around $10,000 from what we had originally felt it was worth to get it off our hands.

When It’s Not a Good Time to Sell Your Vehicle

It’s important to know when it’s not the right time to sell a car.

Regarding your bottom line after selling an automobile, depreciation is the most important element. The average value of a brand-new car drops by 11% the moment it is driven away from the showroom.

It then depreciates by 15% – 25% annually for the first five years. Therefore, a car that is five years old is only worth about what you paid for if it is brand new. Therefore, the first three years are the worst time to sell because of the high depreciation rate. Those who have financed their vehicle through a loan or lease are similarly likely to be in the red at this point.

How Do You Know When The Best Time Is To Sell A Car?

You may not always be in control of when you sell a car due to your circumstances, but if you can predict when you will sell, you may maximise your profits. One of these benefits is ensuring the vehicle has had all necessary repairs done before going on sale.

Some of us already factor in car costs, but we don’t budget for the money we’ll lose when we sell the car. The unexpected depreciation expense on your vehicle can also significantly impact your financial well-being, making the “best time to sell” a car crucial.

Aiming for the highest possible price when selling your car would be best. It would be best if you sold when there are plenty of potential buyers around to make it happen. Visiting the market at the optimal time will free up valuable minutes to be used better.

When to Avoid Selling a Car

Although there are optimal selling times throughout the year, there are also times that frequently pose difficulties for sellers.

End of Financial Year

Dealerships try to sell off as much inventory as they can before the end of the fiscal year. This implies both new and pre-owned vehicles are on sale. As a result, on the secondary market, your vehicle will have more difficulty competing unless you’re considering trading in your car for a deal before the fiscal year ends.

Holidays

Most of December and January can be ignored. Car sales should be avoided on any major holiday. Large purchases are put on hold while people focus on smaller ones, such as presents, vacations, and other forms of entertainment. A few well-heeled Christmas shoppers might be looking for a vehicle to give as a gift, but they’ll need help to come by.

Winter

When the days are shorter, and the weather is colder, we tend to hibernate during winter. It’s a fact that people are less inclined to make large purchases in the winter; therefore, you should only bother trying to sell something during this period.

When to Sell Your Vehicle

The ideal season to sell a car is often Spring; however, this can vary depending on the model you’re trying to move. Now that the weather is getting warmer, people worldwide are gradually emerging from their winter hibernation. The real estate market is likewise at its peak right now.

A car sale is guaranteed to be successful in the Spring, which consists of September, October, and November. First, however, let’s consider your ideal customer and other elements when planning a sale.

• Students: High school graduates and students of driving age typically begin their search for vehicles in November and February.
• Fuel consumption: Wait until gas prices drop before selling a gas guzzler.
• Luxury cars: When a premium vehicle is three to five years old, it is at its peak resale value.
• Classic cars: Although Spring is ideal, classics can be enjoyed anytime.
• Convertibles or sports cars: Exactly what you thought it would be. It’s preferable to let the top down and air out the hair or shining dome in the Spring or summer.

If you want to sell a relatively new car, aim for a mileage reading of 50,000 to 70,000 kilometres (or three to five years of age). Vehicles lose between 15 and 25 per cent of their value annually for the first five years. So the first three years after buying a new car are the worst possible time to sell. After that, you’ll lose money, especially if you have debt.

Selling a used automobile before it hits 100,000 kilometres is preferable. This is a magical figure that, once reached, will cause the value of your car to plummet precipitously, attracting bargain hunters. This is because most vehicles only have a few major repair needs beyond the first 100,000 miles. After that point, there may be further expenses, lowering the property’s resale value.

You should consider keeping a car for longer than usual if it is well maintained and has logged more than 100,000 kilometres or is at least seven years old. If you are on the fence about selling your old car, read this first.

Tips On Selling

There are several things you can do when selling your car to maximise your profit. Maintaining the car by servicing it and attending to any necessary repairs is crucial.

An automobile that has been well maintained will sell faster and fetch a higher price from interested purchasers. If you have the time, selling privately can get you more money than selling to a dealer or scrap yard. Get some high-quality pictures of your car and post them widely.

Make sure you have plenty of high-quality photos to show off your car from all angles, as this is important to potential buyers. Last but not least, have professional detail and polish done before you put the car up for sale. These tips will help you sell your car faster and for a higher price.

Finally, this. Don’t write off the rest of the year just yet; well, Spring is in, and Christmas is gone, but Autumn is a wonderful second-place contender, so good luck with your sales.

Conclusion

Timing is everything when selling a car in Australia, both in terms of getting top dollar and getting it sold quickly. Profit maximisation depends on a number of factors, including the state of the economy and future projections. The timing of your car’s sale is crucial to its success, both in terms of speed and profit. 

Selling a car is most effective when the target market is in the market for one. To do this, you should know when your target market is most likely to buy, when gas prices tend to be highest when it’s not a good time to sell, and make sure any necessary repairs have been made to the vehicle before putting it up for sale.

An average new car loses 11% of its value the moment it is driven away from the dealership, and another 15% to 25% each year for the first five years if you try to sell it at the wrong time. To maximise earnings, check that the car has been serviced and repaired as needed before putting it up for sale.

Content Summary

• Selling your automobile in Australia can be a significant decision that requires careful consideration.
• Now might be the best time to sell your car for the most money if you need an upgrade or extra cash.
• Timing is crucial when selling a car, and it’s essential to know the best time to sell to maximise profits.
• The time your car spends in storage can make a big difference in how much money you keep or lose.
• The best time of year to sell your car is whenever your intended audience is actively shopping for one.
• The close of each fiscal year is not a good time to sell a car because dealerships ramp up their marketing and price cuts.
• The Spring season is ideal for selling cars in Australia, as people are in a “getting stuff done” mentality, including purchasing vehicles.
• Gas prices influence car sales, with fuel-efficient vehicles being more appealing when gas prices are high.
• Depreciation is the most important element to consider when selling a car, and the first three years are the worst time to sell due to high depreciation rates.
• If you can predict when you will sell, you may maximise your profits by ensuring the vehicle has had all necessary repairs done before going on sale.
• Aiming for the highest possible price when selling your car is the best strategy.
• End of Financial Year and holidays such as December and January should be avoided when selling a car.
• The time when your target market will purchase can also affect your sales, such as the warmer months when sales of convertibles and sports cars increase.
• The school year ending in November and beginning in February is also an excellent time for parents to purchase a car for their kids.
• Larger vehicles are less appealing to buyers when gas prices are high, and sales of compact, fuel-efficient vehicles tend to increase.
• The average value of a brand-new car drops by 11% the moment it is driven away from the showroom.
• Cars depreciate by 15%-25% annually for the first five years.
• Those who have financed their vehicle through a loan or lease are likely to be in the red if they sell within the first three years.
• The unexpected depreciation expense on your vehicle can significantly impact your financial well-being.
• You should avoid selling your car when you’re in the middle of paying off a loan or lease.
• Selling a car at the end of the fiscal year is not a good idea because dealerships try to sell off as much inventory as possible.
• Car sales should be avoided on any major holiday because people focus on smaller purchases such as presents, vacations, and entertainment.
• Winter months such as December and January are best avoided for car sales.
• The best time to sell a car is when there are plenty of potential buyers around.
• Visiting the market at the optimal time will free up valuable minutes to be used better.
• It’s essential to know when it’s not the right time to sell a car regarding your bottom line after selling an automobile.
• Depreciation is the most important factor when it comes to your bottom line after selling a car.
• It’s crucial to factor in the money you’ll lose when you sell your car and to budget for unexpected depreciation expenses.
• The best time to sell a car is crucial for your financial well-being.
• Selling a car when there are plenty of potential buyers around will help you achieve the highest possible price.

Frequently Asked Questions about Car Sales

What Is The Australian Car Market Forecast?

Australia Used Car Market was valued at USD 37.68 billion in 2021, and it is projected to reach USD 53.87 billion by 2027, registering a CAGR of 6.14% over the forecast period. The COVID-19 pandemic outbreak has caused major disruption in the automotive industry.

Which Car Is Best Seller In Australia?

Toyota HiLux is Australia’s top-selling car for 2022 as Kia, MG, Mitsubishi and Tesla sales jump. The HiLux muscled out the competition to claim the crown as Australia’s most-sold car in 2022, helping Toyota win the title as Australia’s top-selling car brand.

Is It Cheaper To Buy A Car In Australia?

The cost of buying a car in Australia can vary depending on several factors, such as the make and model of the car, the location of the sale, taxes, and other fees. Generally, the cost of cars in Australia can be higher than in some other countries due to various factors such as import taxes, high manufacturing costs, and smaller market size.

However, it’s important to note that the currency’s exchange rate can also affect the price of cars for international buyers. For example, if the exchange rate favours the buyer’s currency, buying a car in Australia could be cheaper than buying the same car in their home country.

Additionally, it’s important to consider the cost of importing the car to your home country and any associated taxes and fees. These costs can vary depending on the specific regulations of your home country.

Overall, whether it’s cheaper to buy a car in Australia or not can depend on various factors and circumstances, and it’s recommended to research the specific car you’re interested in, compare prices, and consider the costs of importing before making a decision.

Which Is The Most Reliable Car In Australia?

Read on to find out who is the most reliable brand and which models are worth your money. According to their 2022 ranking, the top names are:

• Subaru
• Mazda
• BMW
• Honda
• Lexus
• Audi.

Which Car Brand Has Least Problems?

According to recent studies and surveys, some car brands consistently ranked high for reliability and quality across Australia, including Toyota, Mazda, Hyundai, Honda, and Subaru.

It’s important to note that each car model and brand can have its own set of problems and issues, and the reliability can also depend on the specific year and model of the car. Therefore, it’s recommended to research the specific make and model of the car you’re interested in, read reviews, and check its reliability rating before making a purchase. Additionally, regular maintenance and servicing of a car can significantly improve its reliability and prevent problems from occurring.