Cheaper utes! Toyota HiLux, Ford Ranger and Mitsubishi Triton in spotlight as used car prices continue to fall

The days of paying a premium for a decent used car in Australia might soon be over, according to a new report that indicates second-hand car prices are continuing a downward trajectory.

The latest Moody’s Analytics Used-Vehicle Price Report has revealed that used car prices are now 13.2 per cent lower than the peak of May 2022, and are expected to keep heading south as new-vehicle supply becomes more readily available.

However, prices are still 51 per cent higher than pre-pandemic levels, according to the report.

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The report also indicates that utes like the Toyota HiLux, Ford Ranger and Mitsubishi Triton will be hit hardest by the price fall.

“Ute prices are projected to fall more rapidly than prices for passenger cars,” the report said.

“This is due to production of new passenger cars being cut significantly in recent years as supply-chain constraints saw manufacturers prioritise larger vehicle with higher profit margins.

“A lack of supply put additional upward pressure on prices for smaller and less expensive fuel-efficient vehicles.”

In general, used vehicle prices are down nearly 10 per cent in March, 2023, compared to the same month last year.

The report predicts used vehicle prices will continue to fall 12 per cent in 2023, and another 7.6 per cent in 2024 before hitting the floor in 2025.

Utes like the Triton are expected to have the hardest price fall.

These numbers would not put used car prices back to pre-pandemic levels, so it’s safe to assume the days of picking up a reliable and cheerful runabout for the price of a big-screen TV are well and truly behind us.

However, the report also warns of weaker vehicle demand over the rest of the year, with pressure from rising interest rates and inflation as reasons why.

Vehicle supply has also improved, but nowhere near the level it was before the COVID pandemic, another factor slowing the used-car price fall.