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

Thinking about selling your car in Australia? Whether you’re looking to upgrade or need some extra cash, timing can greatly maximise your profit. 

Let’s break down how factors like the economy, season, and market trends can impact the best time to sell your car.

Let’s Get Straight to the Point

The best time to sell a car in Australia is during Spring (September to November) when buyer activity is high. Avoid selling in December, January, or Winter when demand is lower. 

Key factors to consider include the state of the economy, interest rates, fuel prices, and the type of vehicle you’re selling. Family cars and SUVs sell better around the school year, while convertibles are best sold in warmer months. 

To maximise your car’s value, ensure it’s well-maintained, serviced, cleaned, and priced competitively. Selling before 100,000 km can also boost resale value.

How Does the Economy Impact Car Sales?

The state of the economy plays a critical role in car sales in Australia. A healthy economy generally means more buyers with disposable income. 

However, in times of economic uncertainty, buyers may become more cautious, and it could take longer to sell your vehicle. Interest rates and inflation can also influence whether people buy new or used cars.

1. Inflation and Interest Rates

When interest rates rise, financing a new car becomes more expensive, which may push buyers towards the used car market. Conversely, new car sales can spike during periods of low interest, making it harder to sell used vehicles.

2. Supply Chain Issues

Recent global events have caused supply chain disruptions, leading to shortages of new cars. This has, in turn, driven up demand for used vehicles, making it a great time to sell your car at a higher price.

What Season is Best for Selling Cars in Australia?

Timing your car sale around the right season can make a significant difference. Let’s look at which times of the year work best for different types of vehicles.

1. Spring: The Prime Selling Season

Spring is arguably the best time to sell your car. During September, October, and November, Australians often look to make significant purchases, whether it’s a new home or car. 

The warmer weather brings people out of winter hibernation, and they’re more likely to take the time to shop around for vehicles.

Spring highlights:

• Increased buyer activity.
• Ideal weather for test drives.
• Higher demand, especially for convertibles and sports cars.

2. Summer Holidays: A Time to Avoid

Avoid selling during December and January. Many Australians go on holidays or focus on end-of-year celebrations, meaning less attention is given to buying cars. 

In addition, car dealerships offer year-end promotions, making it harder for private sellers to compete.

3. Autumn: The Runner-Up

Autumn (March to May) can be the second-best option if you miss the Spring window. The weather is still pleasant, and people are returning to a routine after the summer holidays.

4. Winter: A Tough Sell

Winter, especially in colder regions, can slow down the car market. People are less likely to go car shopping when it’s cold and dark. 

If possible, avoid selling during this time unless you’re in no rush or have a high-demand vehicle.

Targeting the Right Market

The type of car you’re selling also influences the timing. Certain vehicles will perform better in specific seasons, so it’s essential to understand your target market.

1. Convertibles and Sports Cars

For those selling convertibles or sports cars, the warmer months of Spring and Summer are ideal. Buyers want to take advantage of the weather and are more likely to purchase cars suited for leisure driving.

2. Family Cars and SUVs

Parents often look for family cars at the end of the year, just before the new school year starts in February. SUVs also sell better around this time due to their practicality and space for road trips.

3. Fuel Efficiency Considerations

With fluctuating fuel prices, vehicles with good fuel efficiency become more attractive when fuel costs are high. Selling a fuel-efficient car during high fuel prices can lead to a quicker sale and higher profit.

Depreciation: When Is It a Bad Time to Sell?

Depreciation is the biggest factor to consider when selling a car. On average, a new car loses 11% of its value the moment it’s driven off the dealership lot and continues to lose between 15% and 25% annually for the first five years.

1. Avoid Selling Within the First Three Years

Selling a car within the first three years is generally a bad idea unless you have no choice. The depreciation is at its highest during this period, meaning you’ll likely lose significant money.

2. Sell Before 100,000 Kilometres

Once a vehicle hits 100,000 kilometres, its value can drop sharply. Many buyers associate higher mileage with increased repair costs, so selling your car before it reaches this milestone could result in a better price.

Other Factors to Consider

Several other factors can affect the best time to sell your car in Australia. Let’s explore some of the most important considerations.

1. End of Financial Year (EOFY) Sales

Dealerships ramp up promotions in June to clear out stock before the EOFY. This means that both new and used cars are often available at discounted prices. 

If you want to trade in, this can be a good time. However, it may be harder for private sellers to compete with dealership offers.

2. Holiday Periods

December and January are typically slower for private car sales as people focus on holiday spending and vacations. Try to avoid these months unless you’re selling a unique vehicle that’s in high demand.

Tips to Maximise Your Car’s Value

Selling a car takes more than just timing. Here are some key tips to maximise your car’s value:

• Service and Maintenance: Ensure the car is in top condition. A fully serviced car with updated maintenance records will appeal to buyers and can justify a higher price.
• Clean and Detail the Car: Presentation is crucial. A well-cleaned and polished car is more likely to attract buyers. If necessary, invest in professional detailing.
• High-Quality Photos: When advertising online, include plenty of clear, high-quality images from all angles. Don’t forget to showcase the interior and important features.
• Set a Competitive Price: Research similar cars on the market to set a realistic price. Consider using a car valuation tool to get an accurate estimate of your vehicle’s worth.

Conclusion

Is it a good time to sell a car in Australia? It depends on several factors, like the state of the economy, the season, and the type of vehicle you’re selling. 

If possible, aim to sell in Spring, when buyers are most active, and avoid periods like Winter or the holiday season when demand tends to be lower.

Remember, timing is everything, but maintaining your vehicle and knowing your market can make all the difference. By understanding these factors, you can maximise your profit and make the car-selling process as smooth as possible.

Ready to sell your car? Make sure to consider all the factors above. Good luck.

Frequently Asked Questions about Car Sales

1. When is the best time to sell a car in Australia?

The best time to sell is during Spring (September to November) when buyer activity is high. Avoid December, January, and Winter due to lower demand.

2. How does the economy impact car sales?

A strong economy means more buyers with disposable income, while high interest rates and inflation push buyers towards used cars, increasing demand.

3. What type of car sells best in each season?

Convertibles and sports cars sell best in Spring and Summer, while family cars and SUVs perform better around the start of the school year.

4. Why should I sell my car before it hits 100,000 kilometres?

Cars tend to lose value sharply after reaching 100,000 km, as buyers associate high mileage with increased repair costs.

5. What should I avoid when selling my car?

Avoid selling during the holiday season (December and January) and Winter when buyer activity is low and dealerships offer promotions.