So, what’s driving the cost of older vehicles up — even ones with dodgy paint jobs and mismatched wheels? In this no-BS breakdown, we’ll unpack how market conditions, collector demand, supply chain dramas, and even EV technology are pushing old car values to eye-watering highs.
The Used-Car Market Is Wild Right Now
If you’ve peeked at the used car market in 2025, it’s clear things are a bit cooked. Even a tired BMW 3 Series with worn halogen headlights and a cracked dash is asking for more than you’d think.
According to Cox Automotive Australia, the average price of a second-hand vehicle jumped by over 30% between 2020 and 2024. The average age of a car on Aussie roads is now just over 10.6 years — and rising. U.S. vehicle age is even worse at 12.5 years, per Moody’s Analytics.
How Much Are Aussies Paying for Used Cars?
| Year | Average Used Car Price (AUD) | New Vehicle Sales (Units) |
|---|---|---|
| 2021 | $21,900 | 1.05 million |
| 2023 | $28,300 | 1.08 million |
| 2025 | $30,700 (est.) | 960,000 (projected) |
Source: Federal Chamber of Automotive Industries, Kelley Blue Book (global data), Moody’s Analytics
Why the Price Hike? Let’s Talk Supply Chain
Ever tried finding parts for a Subaru Legacy or Hyundai Sonata lately? Yeah, good luck. Thanks to semiconductor chips shortages and supply-chain problems, even basic components like computer chips, brakes, and batteries have been delayed for months.
New vehicle sales stalled during COVID and hasn’t fully recovered. This bottleneck meant fewer new cars and a boom in demand for older models — everything from work utes to the family Kia with 300,000km.
Old Cars Are Built Different — Literally
Back in the day, American-made vehicles like the F-350 XL diesel dually or foreign models like the G20 model BMW were engineered for durability, not disposability. The simplicity of internal combustion engine vehicles means many of them can keep going with regular oil changes and a bit of duct tape.
In contrast, today’s electric vehicles come with fancy features, full manufacturer warranties, and charging cables — but also higher repair costs and shorter lifespans in the second-hand EVs market.
Residual Value: Why Some Cars Age Like Fine Wine
Here’s the thing: not all cars depreciate equally. Some — like the Jeep XJ, Ford Bronco, or even that ridiculous Ferrari 250 GTO that sold for $100 million — actually gain value.
This is what auto industry experts call strong residual value. If a car holds up well in both mechanical and aesthetic condition, and still turns heads, it’s going to fetch more. That’s especially true for cars with:
- Limited production numbers
- Iconic body styles (hello Alfa Romeo Stelvio)
- Historical or cultural significance
- High fuel efficiency or off-road performance
EVs Are Changing the Game — But Not How You’d Think
Now you might think EV sales would tank demand for old-school petrol cars. But surprise! The rise of electric vehicles has made some buyers even more nostalgic for engines that growl instead of hum.
There’s also the reality of used EV prices — they’re dropping fast due to rapid advances in EV batteries, charging networks, and resale uncertainty. Some early adopters of the Nissan Leaf or Jaguar I-Pace found out the hard way that second-hand EVs don’t hold value like they hoped.
Even Busted Bombs Can Fetch a Price
We once picked up a Toyota Camry in Noble Park that had been under a tarp for five years. Full of cobwebs and soggy floor mats, but it still had a working engine and a clean vehicle registration data trail — so we paid the owner cash on the spot.
These days, even a rough car with faded LED lights and mismatched car’s wheels can bring in dollars because of:
- High dealer inventories turnover
- Global automotive tariffs
- Delays on new vehicle sales
- Ongoing supply chain issues
Interest Rates, Inflation, and the CPI Effect
Let’s not forget the money side of things. The Consumer Price Index has climbed, interest rates are higher, and transaction prices for cars (new and old) are up across the board. The average U.S. new-vehicle selling price hit USD $48,000 in 2024 — wild.
That ripple effect hits Australia too. Buyers turn to second-hand markets for affordability, pushing up prices for old utes, wagons, and even budget EVs like the Hyundai IONIQ 5.
The Government’s Hand in It: Incentives and Red Tape
The federal government introduced multiple purchase incentives for EVs, but few for used cars. Meanwhile, Victoria’s taxes on high-emission vehicles and the road-user charge on EVs add layers of cost that trickle down to the second-hand market.
Some reckon it’s a repeat of Cash for Clunkers — which in the U.S. wiped out a whole generation of perfectly drivable cars in the name of emissions reduction. Whether or not it works is still up for debate, but we’ve seen the vehicle values shift firsthand.
Car Tech, Self-Driving, and the Tesla Factor
Let’s not forget the hype surrounding cars like the Tesla Cybertruck, Tesla Model 3 Performance, and Tesla 2021 Model with its full self-driving fee attached. These vehicles grab headlines, but also make buyers wary of overpaying for tech that becomes outdated fast.
Compare that to an old-school Mercedes or even a classic Volkswagen Golf — they don’t need constant software updates or a charging cable to stay useful.
What You Can Learn from a Scrap Hauler (That’s Us)
We’ve picked up everything from a water-damaged Alfa Romeo to a burnt-out Tesla in Sunshine West. Through it all, a few truths have held steady:
- Cars with working battery health tech and serviceable mechanicals are worth more — even if the paint’s cactus.
- Second-hand vehicles still struggle with long-term resale values unless they’re Teslas.
- Many performance SUVs like the Chevrolet Silverado EV or Mercedes EQS drop value quickly due to expensive repair costs.
Used Car Value: Cheat Sheet
| Factor | Boosts Value | Drops Value |
|---|---|---|
| Rare model | ✅ Ferrari 250 GTO, Jeep XJ | ❌ Common sedans, like Sonata |
| Good mechanical shape | ✅ Regular servicing, no oil leaks | ❌ Overheating, transmission slips |
| Popular body style | ✅ SUVs, utes, performance builds | ❌ Obscure imports, outdated tech |
| EV Tech & Battery | ✅ Tesla Model 3, good range | ❌ Unknown EVs, bad battery health |
| Ownership history | ✅ One-owner, clean logbooks | ❌ Written-off or flood-damaged |
Final Thoughts: Know When to Sell, Scrap, or Wait
The used-car market is full of surprises. That ’92 Corolla in your nan’s garage might be worthless — or it might be a cult car in Japan. Meanwhile, that Tesla Model 3 you just bought? Better hope it holds value when the EV technology changes again in six months.
If your car is worth more as metal than a motor, we’ll let you know. But if it’s got resale life left, we’ll point you in the right direction. Either way, Old Cars Removed is here to keep it real — from tradie utes to electric dreams.
FAQ
Are electric vehicles affecting used car prices?
Yes. EVs have created both a rise in new tech and a desire to hang onto simpler petrol cars. Some used EV prices are dropping fast due to battery health concerns and outdated software.
Why are even basic used cars so expensive?
A mix of supply chain issues, dealer inventories running low, and interest rates pushing buyers into older vehicles have driven prices up.
Is it worth trading in my old vehicle now?
If your car has good residual value or is in high demand (like certain SUVs or hybrids), your trade-in value might be higher than expected. Check recent sales or contact a local removal team like us.
Do American-made or foreign models hold value better?
It depends. Classic American-made vehicles like the Ford Bronco can perform well, but some foreign models (like the Toyota RAV4) retain value better due to reliability.
Will old EVs ever become classics?
Possibly — but only a few, like the Tesla Roadster or high-performance models. Most early second-hand EVs lose value fast due to EV batteries degrading and poor charging infrastructure.
