It's a tough time to be buying quality used cars. My regular correspondent from Cox Automotive Group, Mat MacAuley tells me used car prices have jumped 70 per cent in the last two years.
Manheims Auctions who are in the Cox group are selling SUVs for $20,000 more than they sold for at auction 12-18 months ago.
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The reason, a profound shortage of new and used car stock.
Check out any dealer and you'll see a well spread and limited display of available stock. If you are after a certain type of new vehicle you may have to join the queue for up to twelve months.
My US correspondent Steve Lehto tells me that Ford has just closed its order books in the US for the Ford Mustang E (electric) for 2022. The reason - lack of production capacity.
Closer to home I thought I'd compare my wife, Vicki's 2017 Kia Picanto (we paid $13,000 new) with its current value second hand.
Going to carsguide.com.au I saw 10 Picantos for sale ranging in price from $13,490 (115,000ks) to $17,990 (60,000ks). Average price $15,570.
After five years our Picanto is now valued second hand at around 5-10 per cent more that what we paid for it new. There is no sign at the moment of an end to this volatile market.
My first statement stands - MAD MARKET.
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