Australia’s used vehicle market declined during the first half of 2026, but demand for used electric vehicles (EVs) and plug-in hybrids continued to strengthen as more buyers turned to lower-emission options.
New data released by the Australian Automotive Dealer Association (AADA) and AutoGrab showed just over 1.3 million used vehicles were sold nationally during the first six months of the year, down 6.6 per cent compared with the same period in 2025.
The market softened further as the year progressed, with June recording the largest year-on-year decline of 2026. Used vehicle sales fell 16.2 per cent compared with June last year.
Electrified vehicles buck the broader market trend
While overall sales eased, electrified vehicles continued to gain market share in the second-hand market.
Used battery electric vehicle (EV) sales increased 54.6 per cent during the first half of 2026, while plug-in hybrid electric vehicle (PHEV) sales rose 468.4 per cent from a relatively small base. Combined, EVs, PHEVs and hybrid vehicles accounted for 7.1 per cent of all used vehicle sales.
The report also found used EVs were selling more quickly as the year progressed, with average time to sell falling from more than 60 days in January to fewer than 40 days by June.
“The used vehicle market has become increasingly competitive during the first half of 2026. Buyers have more choice than they’ve had for some time, and dealers are responding to that environment through more competitive pricing and discounting,” said AADA Chief Executive James Voortman.
“While overall sales have softened compared with last year, it’s encouraging to see continued growth in used electric vehicles and plug-in hybrids as more Australians consider lower-emission vehicles in the second-hand market.”
Greater supply drives price competition
The increase in used vehicle supply also placed downward pressure on asking prices.
By June, more than half of all one-to-five-year-old used vehicles sold had their asking price reduced before sale, with the average discount widening to 3.7 per cent — the largest average discount recorded so far this year.
According to the report:
- More than half of one-to-five-year-old used vehicles sold below their advertised price by June.
- The average price reduction increased to 3.7 per cent.
- Petrol and diesel vehicles experienced the greatest discounting.
- Hybrid vehicles remained the strongest performers for value retention.
- “Year-on-year sales declines widened over the half, with June recording the largest decline of the year to date. Every state and territory sold fewer used vehicles in the first half of 2026 than in the equivalent period in 2025. And the sales decline was concentrated in passenger cars, with SUVs and Utes recording smaller falls,” said AutoGrab Chief Executive Saxon Odgers.
“By June, more than half of all one-to-five-year-old vehicles were selling below their asking price, and the average discount had widened to 3.7 per cent. In that environment, accurate and current pricing is the difference between a car that sells and one that sits. Petrol and diesel vehicles are carrying most of the pressure, while hybrids have held their value best,” he added.
EVs continue to stand out
AutoGrab said used electrified vehicles remained the strongest-performing segment despite the broader market slowdown.
“Electrified vehicles are the clear exception. Used EV sales rose 54.6 per cent and sold faster as the year progressed, with average time to sell falling from more than 60 days in January to fewer than 40 days by June. The volume growth is now well established in the Australian market,” said Mr Odgers.
Did you find this article interesting? Click the heart button above to give it a ‘like’!
