For years, families could rely on finding a safe, reliable first car for around $10,000. Parents helping their children into their first vehicle often looked for small, automatic hatchbacks — affordable, easy to drive, and simple to maintain.
But since COVID, the market has shifted dramatically.
The Price Shift
- Pre‑COVID: $10,000 was the sweet spot for entry‑level used cars.
- Post‑COVID: Those same vehicles now sit closer to $15,000, and even then, they’re harder to source — especially in automatic, which remains the most in‑demand transmission.
- Wholesalers confirm: buying at the right price has become increasingly difficult, as demand outstrips supply.
Why the Change?
Several factors have pushed prices upward:
- Supply chain disruptions during COVID reduced the flow of new cars, which in turn lifted used car values.
- High demand for automatics among younger drivers and families has created scarcity.
- Longer vehicle retention — people are holding onto cars longer, meaning fewer quality trade‑ins are available.
The New Gap: Used vs New
Here’s the interesting part: the gap between used cars and new entry‑level vehicles is narrowing.
- New Chinese brands and entry‑level models are arriving in Australia at competitive prices.
- While still generally above $20,000, they’re becoming a realistic alternative for families weighing up the long‑term value of a new car versus the rising cost of used.
- For some, the extra upfront investment in new may be offset by warranty coverage, lower maintenance, and peace of mind.
What Families Can Do
- Plan ahead: If your child’s first car is coming up, start exploring options early.
- Set realistic budgets: Expect $15,000+ for a reliable automatic used car, or consider stretching to $20,000+ for new.
- Lean on trusted advice: We’ve been guiding families through first‑car purchases for decades, and we’ll help you weigh the pros and cons of each option.
Our Commitment
We know this is a milestone moment for families — the first set of keys, the first taste of independence. Our role is to make sure it’s safe, affordable, and transparent. Whether you choose used or new, we’ll walk you through the process and ensure you get the right deal.
The first car is more than just transport — it’s a rite of passage. We’re here to help you celebrate it with clarity and confidence.