New car prices are soaring as much as 60 per cent, with buyers paying tens of thousands of dollars more than the original price.

Mike Sinclair, the Editor-In-Chief at Carsales, told Gareth Parker on 6PR Breakfast that a shortage of different materials has led to increased prices.

Sinclair explained that there is a gap in the market for second-hand car buyers because owners aren’t trading in older cars.

“Another thing we’ve found all the way through the COVID period is that consumers value the ability to have their own private transport,” he said.

“They haven’t been using public transport, 

“They maybe have been keeping an extra car in the family, particularly bigger families.”

Tap PLAY to hear more about why the car sales market is becoming desperate.