Key Point Summary
- Late model, low km cars are moving well in all markets and priced near retail value.
- Great Wall and Cherry are struggling notably.
- Stock varies region to region; limited in NSW but abundant in QLD and WA.
Late model, low km cars are proving popular and are achieving close to retail value in most markets. Vehicles within the 2005 to 2012 age bracket with close to or over 150,000km’s have dropped in price leading into the end of the year due to less buyer interest.
Resistance against the traditional six-cylinder sedans seems to be growing and we are finding it harder to home Holden Commodore and Ford Falcon sedans. Utes and wagons are still reasonable as they are more popular with younger drivers.
The push towards the Turbo Diesel SUV has made moving the less economical V6 petrol SUV’s such as the Holden Captiva and Hyundai Santa Fe more difficult. Clearly economy remains a major contributing factor in purchasing the family car.
Dealers will start to offer end of the year run-out deals which may see vehicles ease in price. We expect medium size passenger vehicles and unfavourable compact SUV’s will be impacted most significantly.
The Chinese makes such as Great Wall and Cherry are experiencing extremely strong buyer resistance due to a perception of unreliability.
QLD has seen a huge upswing in vehicle volume on the back of the mining downturn and the end of most of the CSG projects in the state. This has meant an increase in repossessions.
Toyota still remains QLD’s favorite make, with the Land cruisers and Hilux’s attracting the greatest buyer competition.
In NSW wholesalers and dealers have been reporting that it has been hard to source quality stock. Commercial vehicles like the Toyota Hilux, Triton, Colorado and Hiace vans are all selling close to 90% of retail. For example a 2013 Toyota Hilux SR5 Manual with 101,000 kms sold for $32,500 against a Glasses Guide retail price of $34,000. This evidences recent efforts to attract end users and strengthen Slattery’s results in the auto sector has been paying off.
The Holden Commodore V8 is still strong with results also selling above wholesale and quite close to retail. This is evidenced in a 2010 SS Wagon valued at $17,000 and sold for $22,500, or 90% of its Glasses retail value.
WA report no improvement in vehicle sales in WA in the quarter, matching the 4.2% slump in new vehicle sales against the same period in 2015. Buyers are spoilt for choice and demanding better quality, low mileage vehicles at lower prices. An influx of Holden and Ford two door utes hit the market and saw suppressed pricing, whereas, Toyota Hilux and Ford Ranger four door utes are in demand and as such have maintained pricing.
More information available on the Slattery Auctions website.
