The used car market in Australia has leaned in favour of buyers, with slower sales and dropping values creating more opportunities to secure a good deal. Recent data has shown an 8.1 per cent decline in sales for December, with just over 181,000 vehicles sold. This slowdown is reflected in longer selling times, now averaging 48.7 days – the highest since October.
“The increase in average days to sell suggests that sellers are dealing with slower-moving stock,” said James Voortman, CEO of the Australian Automotive Dealer Association (AADA).
“This trend is expected to continue in 2025 as the growing oversupply of new vehicles creates a spillover effect into the used car market.”
Retained Values Decline
Almost all vehicle categories saw a drop in retained values during December. The oversupply of new vehicles is pushing down prices for used cars, with electric vehicles (EVs) particularly affected. However, light commercial vehicles like Utes in the 2 to 5 year age group remain an exception, holding their value more effectively than other segments.
Despite the overall decline, demand for used EVs rose in some states. Western Australia and South Australia saw significant increases in EV sales, with growth rates of 19.8% and 10.7%, respectively.
“Average days to sell a used EV have returned to August levels,” added Mr Voortman.
Regional Trends in Listings and Sales
The number of used cars listed for sale fell by 3.8 per cent in December, with 322,532 vehicles available on the market. Northern Territory and Western Australia were the only states to buck the trend, with listings rising by 7.5 per cent and 0.5 per cent, respectively.
However, most states saw reduced inventory, reflecting slower turnover in the market. Buyers now have more leverage, particularly with the combination of longer selling times and declining values.
Standout Vehicles Hold Value
In terms of retained value, specific models continue to perform well. The Ford Mustang led the passenger segment for 2 to 4 year-old vehicles, retaining 97.0 per cent of its value, while the Toyota Yaris remains the top performer in the 5 to 7 year category at 97.5 per cent.
For SUVs, the Suzuki Jimny remains a standout in the 2-4 year range, holding 110.7 per cent of its value, while the Toyota Land Cruiser takes the top spot in the 5-7 year range at 87.9 per cent.
Did you find this article interesting? Click the ‘heart’ button above to give it a ‘like’!
