Used car sales in Australia hit 2,324,805 units in 2024. This is a 12.1 per cent increase compared to the previous year, according to the Australian Automotive Dealer Association (AADA). This strong growth shows that the used car market performed well in 2024. However, the final months of the year saw a slowdown, and experts predict that the market may grow at a slower pace in 2025.
The 2024 Year That Was Automotive Insights Report (AIR), put together with data from AutoGrab, looks at the details of the used car market over the past year. In the first part of 2024, sales were high, and the market was busy. Sales reached their peak in July. But towards the end of the year, sales began to drop. This suggests that while the demand for used cars remained strong early in the year, it started to cool off as the year went on.
The report highlighted a key difference between the number of used cars available and the demand for them. Listings of used cars were highest in November, which shows that while there were plenty of cars to buy, fewer people were looking to make a purchase. This shows that the market was starting to slow down by the end of the year.
Another important point is how long it took to sell a car. From August to October, the time it took to sell a car increased by 15 per cent. This suggests that buyers were taking longer to decide, possibly due to concerns about affordability and the economy. Car dealers were also feeling the pressure, with profit margins becoming tighter as sales slowed down.
Toyota was still the top brand in the used car market in 2024, selling 390,298 used cars. Mazda and Ford followed behind, taking the second and third spots. When it comes to individual models, the Ford Ranger was the best-seller, with 82,448 cars sold. It was followed by the Toyota Hilux and the Toyota Corolla.
The AADA report warns that growth in the used car market may slow down in 2025. The signs of slowing sales and the increase in the number of cars available but not sold in the last months of 2024 point to a market that could be more balanced in the new year. As the cost of living continues to affect people’s buying habits, dealers may need to adjust their strategies to keep up with these changes.
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