Used car prices continue to soar as commuters shun public transport, fearing COVID-19 contagion.

According to data analytics firm Datium Insights, used motor vehicle prices rose by 4.4 per cent last week after increasing by 2.1 per cent in the previous week, and stock remains considerably low.

In terms of category, prices of SUVs rose the most, up 5 per cent, while passenger vehicles gained 4.7 per cent.

Among the top traded vehicles, resale prices for Toyota Hiace and Volkswagen Golf were up 10.2 per cent and 8.2 per cent, respectively.

“Demand for second hand cars remains firm during the pandemic with Aussies preferring to drive their own cars rather than catch public transport due to health concerns,” CommSec chief economist Craig James said.

“But the supply of vehicles remains volatile – lifting 7 per cent last week after falling 10.4 per cent in the prior week.”

Meanwhile, Federal Chamber of Automotive Industries figures show new car sales were down 21.8 per cent in September compared to the same month last year.

The passenger vehicle market fared the worst, down by 28.8 per cent, follow by sports utilities, which were 22 per cent weaker.

Among those that did sell, Toyota was the market leader, followed by Mazda and Hyundai.

In Victoria, stage 4 restrictions hit hard, with new car sales plunging by 57.7 per cent.

But it was a completely different story in the Northern Territory, where new vehicle sales rose by 10.6 per cent.

The rolling annual total of new car sales last month was down 17.3 per cent on the year and the lowest annual total in 17 years.

“New vehicle sales are expected to lift later this year and through 2021 with further easing of domestic travel restrictions,” Mr James said.

“With foreign travel out of the question for now, consumers will favour purchases such as cars as well as lifting travel to regional holiday spots.”

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