CARS are being purchased on eBay for $19,000 a car, while Craigslist has a “buy for $15,000” listing for a 2014 Toyota Prius.
In Sydney, car dealerships are selling used cars for as little as $4,000 per car.
“There’s no shortage of buyers in Sydney at the moment,” Mr Rizzo said.
The sale of a used car is not illegal in Australia but Mr Rizos is worried that some buyers may not realise they are being taken on a loan.
“Somebody could be looking at the fact there’s a loan on the back of this car and think it’s not a real loan,” he said.
“If someone is driving a vehicle, they can get a loan and drive it away, and not realise that there’s the loan on there.
We have an awful lot of these loans in Australia, we don’t have enough enforcement.”
Mr Rizzos said he wanted to see more of the government take action against people who would illegally borrow money from car dealers to buy new vehicles.
He said car dealers should be required to disclose all loan details, and the sale of used vehicles should be banned.
If you or someone you know is experiencing financial difficulties, call Lifeline on 13 11 14 or visit a local crisis centre.