Banking

Is my best buy a new or used car?

It’s never been quite so challenging to buy a new car as it is right now. With current demand very high, and supply at an all-time low, many Australians who have bought a new car are waiting, on average, three to 14 months to get behind the wheel.

This shortage is showing no signs of ending any time soon. According to data from the Federal Chamber of Automotive Industries, in April this year, car sales dropped 12.2 per cent from sales in the same month last year. Reportedly the worst result since the COVID-19 lockdown back in 2020 and a direct result of the current stock shortages sweeping the automotive industry.

So, what does this mean if you’re in the market for a new car but you don’t have the ability to wait for supply to increase? The used-car market could be your best bet.

While you do need to be prepared that demand, and therefore prices, for used cars have increased over the last two years, it could be the perfect time to sell your current car for a higher price and try to nab yourself a bargain.

In positive news for buyers in the used-car market, a Moody’s Analytics report showed prices are predicted to only increase by a small 3.9 per cent in 2022 before slipping back to normal in 2023.

With all this in mind, the decision to wait for a brand new car, or turn to the used-car market, is entirely dependent on your personal circumstances. For those who need a new car right now, the used car market is likely your best option.

To help you find the perfect pre-loved car to suit your needs, CarSales has broken down which cars could be the best bang for your buck in its Best Used Car Awards for 2022.

These annual awards assess and rate used cars up to six years old across a range of categories to find the best in the market. This year, Mazda, Ford and Toyota each took out two category wins, making them the standouts in the current market.

Cars which won the title of best used car across 10 categories were: • SMALL CAR 2015 Mazda3 Neo Hatchback. • MEDIUM CAR 2015 Skoda Octavia Ambition 110TSI. • LARGE CAR 2015 Ford FG X Falcon XR6. • SMALL SUV 2015 Honda HR-V VTi. • MEDIUM SUV 2015 Mazda CX-5 Maxx. • LARGE SUV 2015 Subaru Outback 2.5i. • SPORTS CAR 2015 Toyota 86 GT. • LUXURY CAR 2015 Mercedes-Benz S 300h. • DUAL-CAB UTE 2015 Ford Ranger XL 2.2 4x4

Double Cab. • OFF-ROAD 4X4 2015 Toyota LandCruiser Prado GX. In positive news for buyers in the used-car market, a Moody’s Analytics report showed prices are predicted to only increase by a small 3.9 per cent in 2022 before slipping back to normal in 2023.

When it comes to finding your ideal pre-loved car, make sure you do your research. It’s important in this current market to compare prices, makes and models to make sure you find the right car at the right price.

Once you do find that car, meet the seller face to face and take the car for a spin to ensure you’re aware of any potential issues. If all goes well and you’re interested in moving forward, have the car checked by a mechanic or request information on the last car service from the seller.

Also, acquaint yourself with the car’s history. Jump online and check the car’s registration history to see if there are any outstanding finances on it.

Once you’ve found the car right for you, you need to move quickly. That’s where Police Credit Union can help for a new or used vehicle. Apply for a car loan with Police Credit Union by 10am and you could get your money by 5pm the very same business day*.

Our car loans have won Mozo and RateCity awards in the used-car category over multiple years, and we offer one of the lowest loans you’ll find for a used car. Plus, as a Platinum member you’ll receive $0 package fees across all our loans.