It used to be the case that a vehicle lost value as soon as a buyer took it out of the car yard, but a prolonged supply chain shortage in the car industry means selling an old car could be surprisingly lucrative.
Gary Fitch, director of sales at John Hughes, one of Perth's largest car dealerships, says it's the weirdest time he's ever experienced in decades of buying and selling cars.
Used cars are now in hot demand as the supply chain shortages in the new car market have sent buyers hunting in the second-hand market for their preferred vehicle.
"There's a massive shortage of new cars," Mr Fitch said, adding that his firm has 3,000 orders for new cars waiting to be delivered.
"Most people are waiting six to 12 months for a new car to arrive, so there has been a shortage of trade-ins and therefore, it's a supply and demand situation."
Car industry playing catch-up
James Voortman, chief executive of the Australian Automotive Dealers Association, said there had been significant increases in prices in the used car market.
"The numbers we've seen suggests that the increase has been between 10 and 30 per cent," Mr Voortman told Tom Baddeley on ABC Radio Perth.
The shortage of new cars, and subsequent demand for used cars, stem from a shortage of small but essential components and a decision by car makers, taken early in the pandemic, to reduce manufacturing.
"But when it turned out that the economies around the world didn't deteriorate as everyone thought, manufacturers tried to ramp up that supply, and they found that they couldn't get access to these very important microchips.
"There are about 100 to 200 microchips in every car; they govern everything from an engine-management system, to airbags to seats.
"They've been playing catch-up ever since."
'Sold within the hour'
For people with a used car to sell, it's been an unexpected windfall, with many ABC Radio Perth listeners finding their vehicles sold not only for a healthy price, but also very fast.
Tough time to buy
For buyers however, it's a very different story.
"It is pretty hard at the moment," motoring journalist Toby Hagon told ABC Radio Perth.
"It depends on the brand. Obviously you can find them and if you're prepared to compromise, you can certainly come up with something."
He said the greatest demand was for four-wheel drives and utility vehicles, in part motivated by the fact that the only holidays possible in recent years had been road trips.
"You've got the grey nomads, you've got the family adventurers who love going fishing and off-roading, and you've also got the young blokes who just love them," he said.
'We were offered almost double what we paid'
One adventurer who took to the road during the pandemic was Perth resident Sam Twigger, who isn't planning on selling her vehicle but has had offers.
"We paid $88,000 for this rig full of extras to travel around Australia, just when COVID started and lockdowns began," she said.
"We've been offered nearly double for it because of all the stuff that came with it. We won't be selling because you can't replace it."
Others, like ABC Radio Perth listener Amanda are caught in the middle, wanting to sell but finding it tough to buy.
Gary Fitch said many people were simply choosing to hold on to their existing cars for longer as the situation was unlikely to change anytime soon.
"It will take at least another 18 months, because it will take that long for the new car market to stabilise," he said.
