Australia’s used car market shifted in January 2025 with an increase in supply paired with weak demand. According to the latest Automotive Insight Report (AIR), used car listings rose by 3.4 per cent to 333,386, reversing the decline from the previous month. However, total sales dropped by 5.9 per cent.
“The increase in listings, coupled with declining sales, suggests that the market continues to favour buyers,” said Australian Automotive Dealer Association (AADA) CEO James Voortman.
“Sellers are facing longer wait times to move stock, with average days to sell holding at 48.5. This trend may persist as the growing availability of new vehicles continues to impact the used car sector.”
Retained Values Under Pressure
Vehicle retained values remain under pressure, with most segments experiencing declines. However, light commercial vehicles (LCVs) showed slight gains in some age categories, continuing to buck the trend.
The electric vehicle (EV) segment experienced weakening demand, with total EV sales down by 7.9 per cent. Listing-to-sale ratios remained the highest among all vehicle categories, reflecting the impact of new vehicle oversupply, which is putting downward pressure on used EV prices.
Top Performing Models
The Ford Mustang retained the highest value among passenger vehicles in the 2-to-4-year category, while the Suzuki Jimny continued its 15-month reign as the top SUV in retained value. Toyota further cemented its market dominance, holding seven of the top ten SUV retained value rankings.
Key Highlights from the January 2025 AIR Report
In January 2025, 171,007 used cars were sold, marking a 5.9% decrease from the previous month. Dealer contributions to both sales and listings reached their highest level in recent history.
Sales declined across all states, with the Northern Territory experiencing a 10.1 per cent drop and Victoria seeing a 9.9 per cent decrease.
The average days to sell a used vehicle remained steady at 48.5 days. Retained values for passenger vehicles and SUVs declined across most model years, while LCV-Utes showed minor gains.
The Ford Ranger maintained its position as Australia’s best-selling used car. Japanese manufacturers dominated the top sellers list, with eight of the top ten models originating from Japan, and Toyota alone accounting for five of the top ten.
Meanwhile, EV retained values continued to lag significantly behind other segments.
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