This means dealers are now less than a few hundred dollars away from achieving the initial prices they were asking when they first posted their used cars online.

The latest analysis of online dealer advertising activity from Cox Automotive Australia’s data solutions division shows that dealers on average are achieving an average of $32,567 per used car sold and are now dropping just $153 on average per car.

The October data released by Cox Automotive’s used-car intelligence tool, AutoRadar, reveals the intensity of demand for used cars as well as the success of dealers in generating strong margins. 

The number is a calculation of the difference between the average asking price when cars were listed online and the average asking price when they were removed from stock.

The number identifies the level of discounting dealers were having to apply in that month in order to close their used-vehicle deals.

The data shows that throughout 2019 dealers were basically discounting by an average of around $2000. When COVID hit in 2020, and dealers set about trimming their used-car stock, dealers were prepared to take less margin to make the sale.

That was reflected in the data which showed that by May 2020, dealers were accepting nearly $4000 less at delisting than they were asking for when the cars were first listed.

But as stock shortages grew, that number dropped with dealers shedding only $1200 to $1700 to complete their sales. And by June this year dealers were only dropping on average $544.

The number jumped to $2040 in August but quickly retreated to $881 in September and $514 in October.

Meanwhile, while the unprecedented rise in average used car prices across Australia appeared to have topped out in the past few months, the latest data is suggesting the average price being achieved by dealers for used cars, up by a staggering $8000 or so since the COVID restrictions and chip supply shortages hit the market, is still holding firm. 

The AutoRadar data has confirmed that the continuing demand from buyers in the face of the shortage of new and used cars for sale had driven up used-car asking prices when delisted from dealers’ websites to an average of more than $31,500 in June. This increased to $32,567 in October (after dipping marginally in July and August).

The data tracks the prices being asked at the time vehicles are actually delisted (because they have been sold) which is an indicator of the final transaction price achieved for that vehicle.

As reported previously in April and again in July, data released by AutoRadar, showed the average prices dealers were asking at the time they delisted their used vehicles were around $23,000 to $24,000 throughout 2019 and in Q1 2020.

By September 2020, the average price of used vehicles at delisting rose to $26,500, hit $27,700 in November, $28,000 in January 2021 and passed about $29,500 in April. This number jumped another $1000 in May and reached more than $31,500 in June.

By John Mellor