Used automobile costs fell incrementally from August to September, however the general decline in costs is slowing.

A report from monetary intelligence agency Moody’s Analytics discovered costs declined 0.5 per cent from August to September, and at the moment are 10.9 per cent decrease than a yr in the past.

Utes and SUVs had a extra vital decline from August to September, down 3.3 per cent in comparison with 0.4 per cent for automobiles. In contrast with a yr in the past, ute/SUV costs are down 15.7 per cent, whereas automobiles are down 8.6 per cent.

Moody’s Analytics attributes this larger decline in ute costs to strategic manufacturing choices taken by producers lately, whereby provide of passenger automobiles was extra constrained as corporations prioritised higher-margin utes and SUVs.

Regardless of the small general drop for the broader used automobile market, the agency nonetheless expects costs to proceed to maintain falling into subsequent yr as new automobile provide improves and discretionary demand for each new and used autos eases.

The agency initiatives an general decline in used automobile costs of 9.5 per cent in 2023 and eight.7 per cent in 2024, earlier than they stabilise in 2025.

It cautions, nonetheless, this decline mightn’t be as pronounced if new automobile arrivals to Australia proceed to be impacted by provide chain and import points.

There’s one situation, nonetheless, the place used automobile costs fall extra sharply: a worldwide financial decline.

Used automobile costs are nonetheless 46 per cent greater than the pre-pandemic stage in September 2019, however have declined 16.8 per cent from their Could 2022 peak.

Moody’s Analytics says China’s transition away from its zero-COVID coverage will present a “vital increase” to international automotive provide chains in 2023 and 2024.

Not solely will this assist enhance elements provide, it ought to assist proceed to gas Chinese language carmakers’ development in automobile manufacturing.

Other than a dip in July, Chinese language auto manufacturing has maintained a manufacturing charge 50 per cent above ranges from the start of the yr.

To the tip of September, gross sales of Chinese language-made autos in Australia has grown 75.9 per cent in contrast with the identical interval final yr.