It’s no secret—COVID-19 turned a lot of industries upside down. And the used car market in Australia? It was no exception. In fact, it saw one of the most surprising shake-ups. From skyrocketing prices to stock shortages and a major shift in buyer behaviour, the ripple effects of the pandemic are still being felt today.
If you’re wondering how we went from plenty of second-hand cars to bidding wars over a 10-year-old Corolla, let’s take a closer look.
🚗 Used Car Prices Went Through the Roof
One of the biggest shocks? The price jump. Before the pandemic, used cars were a reliable budget-friendly option. But by 2021, things had changed. With international shipping delays, factory shutdowns, and global chip shortages affecting new car production, demand for used cars exploded.
People who couldn’t get a new car anytime soon turned to second-hand options—and that drove prices up fast. Some cars were selling for more than what they cost brand new a year or two earlier. It was wild.
Even in 2023 and 2024, used car prices stayed higher than usual. And while things have started to settle down a bit in 2025, it’s still far from pre-COVID levels.
📦 Supply Shortages Made Things Harder
COVID hit global manufacturing hard. Car factories paused production, and parts became harder to source—especially the microchips that modern vehicles rely on. That meant fewer new cars were being built, which trickled down to fewer trade-ins and second-hand vehicles in the market.
Add in border closures and reduced imports, and suddenly, the Australian used car market was facing a serious shortage.
For sellers, this was good news—your old car was worth more. For buyers, not so much—it became harder to find a decent deal.
👨👩👧 People Held On to Their Cars Longer
Another big change? People stopped upgrading as often. With uncertainty around jobs, travel restrictions, and fewer daily commutes, many Aussies decided to stick with what they had. As a result, fewer used cars entered the market.
This put even more pressure on already low stock, and again—prices stayed up.
💻 Shift to Online Buying & Contactless Selling
COVID accelerated the move toward digital everything—and car buying was no exception. Online used car marketplaces became the go-to. People wanted to research, compare, and even buy cars without leaving home.
At the same time, services like cash for cars saw a rise in demand because they offered quick, contact-free ways to sell cars safely. In a time when no one wanted to shake hands or stand in a dealership, convenience won.
🛻 Utes, SUVs, and Fuel-Efficient Cars Became Hot Property
With more people heading out of the cities and into regional areas during lockdowns, the demand for utes and SUVs went up. So did interest in small, fuel-efficient vehicles as fuel prices jumped and budgets tightened.
That old Hilux or Corolla you’ve had sitting around? Suddenly, it became a hot-ticket item.
🌱 More Interest in Sustainable Selling
The pandemic also shifted people’s mindsets. Many Aussies started thinking more about sustainability, and that carried over into the auto world. Selling to wreckers and recyclers became more common, with people choosing to give their cars a second life rather than letting them rust away in the driveway.
Car recycling not only became a greener choice but also a smart financial one—especially with cash-for-cars services offering decent payouts for even damaged or scrap vehicles.
So, Where Are We in 2025?
We’re still feeling the effects of COVID on the used car market. Prices are cooling off slightly, but they’re still higher than they were in 2019. Stock levels have improved, but not completely. And the way people buy and sell cars has changed for good.
If you’ve got a used car to sell, it’s still a strong market—especially if you don’t want the hassle of private listings. Services like ours make it easy, fast, and safe to get cash for your car, no matter its condition.
Thinking of Selling? You’re in a Good Spot.
COVID may have shaken things up, but it also opened doors. If you’ve been holding onto your car waiting for the right time, 2025 is still a smart moment to sell—especially with buyers still keen and wreckers offering solid prices.
Need a quick quote or curious about what your car’s worth in today’s market? Reach out to our friendly team. We’ll handle the paperwork, pick up your vehicle, and put cash in your hand—no drama.
If you are in Glen Waverley, and looking for a cash for cars service, this is the best way to visit us.
Burwood Cash For Cars
www.burwoodcashforcars.com.au
(03) 7047 6732