What’s happening with Vehicle Values at the moment?

I don’t know about you lot, but there isn’t much I like more that scouring the “classifieds”. I’m sure I’m not alone in affectionately remembering grabbing the Trading Post from the local newsagency to come back and browse through the automotive listings. Obviously the paper version is long gone; to be replaced with a website that is joined now by a myriad of different resources where you can squander your time dreaming, researching, sharing and just staying in touch with what’s on the market; no matter what your automotive passion may be.

One thing I’ve notice lately is a dramatic increase in valuations across anything automotive. I dread using the term, but a “COVID” tax seems to have been applied to everything from pets to caravans to Suzuki Sierra’s. The latter most relevant as I’ve always wanted to do a build on, so a favourite “search” criteria while sitting on the couch pretending to watch TV with the beloved…

I recently caught up with a mate who trades unique and collectable vehicles, he noted a significant reduction in supply over the last few months. A record number of people are renewing leases rather than re-starting with a new vehicle, and generally, people are hanging onto cars they’d otherwise move on; presumably out of financial uncertainty. He went on to note that the total number of listings on some of the largest car classified websites are down up to 50% – a massive number that justifies his statement around supply.

On the demand side, with the associated COVID-related-border-closure-madness, those who are lucky enough to have disposable income have significant sums of money to throw into new toys. This supply and demand cycle is also causing speculative trading, which has resulted in even more artificial inflation.

Aside from all this, I think we are in a really interesting space with 4X4’s. I’ve said it before, but we are seeing a range of vehicles bucking the traditional valuation trend. I will regularly get certain vehicle types come across my desk and I will conduct a bespoke valuation based on a showcase of the vehicle and some research online. Think all manner of Defenders, 1HDFTE Cruisers, TD42 Patrols along with older units like 60’s  and the like that are now approaching historic status and becoming eligible for special registration schemes. I am seeing more and more people restore and preserve these old girls in the same way someone would do to an old Torana or MGB. The difference though is that many of these owners will still use these units off-road which is really nice to see.

It’s hard to tell when or if this bubble (yes, ill call it that!) will end. If you’re not like me and don’t get emotionally attached the vehicles, it may be a good time to sell-up and make a quid! At the very least, make sure you know what it’ll cost you to replace what you’re in now if the worst were to happen – you may be in for a surprise!

If you are not happy with the standard value on your vehicle, and you insure with Club 4X4, we are always happy to manually review it, whether it is your first time insuring with us, or feel that the depreciation applied with your renewal is too much!

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Comments 4

  1. This is great news at this rate according to Facebook post I’ll be able to get 2 new 79 series for my 2017 model 79 🤪🤪🤣🤣🤣

  2. “…people are hanging onto cars they’d otherwise move on; presumably out of financial uncertainty. ”

    While I do not doubt this for a moment, there may be other factors at play here.

    Those up to date and in the know with the general automobile buying public just might be hanging off, waiting for the EV car of their dreams to arrive and would somewhat explain the dramatic decline in ICE purchases.

    For the time being this phenomenon will likely be less noticeable among the offroad fraternity, but that’s because it is just slightly delayed while the sceptical wait for the early adopters to test out the range on the new 4×4 EV’s slated to roll up in 2021.

    The overall shift could be quite dramatic if Australia followed the UK and EU in generous subsidies for EV purchase rather than the tax disincentives that are spruiked by some short-sighted state governments. Granted, roads have to be paid for, but anyone that believes the petrol tax pays for maintenance is living in a fantasy world. Surely there must be another way, but that’s above my pay grade. Sigh….

    Very interesting to see how this plays out next year and beyond.

  3. I tried to subscribe to Newsletter using 3 of my email addresses and was advised with each email address that ” YOU ARE NOT AUTHORISED TO ACCESS THIS FILE” ???…please explain.

    Brian Coulson

  4. I have 2014 FJ Cruiser and did a quick search for what they are selling for. Apparently I can get $5k more now than what I paid 2 years ago 2nd hand. But I have it fitted out to suit me and can not afford a new Defender or similar to replace it. So I will be keeping it for a few years I guess.

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