Australia’s used car market declined 3.2 per cent in October according to latest statistics from the Australian Automotive Dealer Association’s (AADA) Automotive Insight Report (AIR). A total of 202,355 vehicles were sold during the month.
Meanwhile listings grew by 1 per cent to 317,861, indicating a growing buyers’ market as supply continues to outpace demand.
Sales Slow While Buyers Have More Options
The average time to sell a used car climbed to 49 days, up from 46.4 days in September. This marks the highest figure since December last year, showing that buyers are taking more time to make their decisions.
Despite petrol and diesel vehicles still dominating sales with over 95 per cent of the market with consumer interest is shifting towards fuel-efficient alternatives.
Plug-in hybrid electric vehicles (PHEVs) saw a sales increase of 27.1 per cent, making them the most popular choice among alternative fuel vehicles. Electric vehicles (EVs) followed closely with a 22.3 per cent rise in sales. In contrast, traditional petrol and diesel vehicle sales dropped by 4.5 per cent and 2.3 per cent, respectively.
“As expected in an oversupplied market, retained values remain on a downward trajectory, with every vehicle segment across every age category experiencing a drop in value for the month. Retained values of used EVs in the 1-3 year old category have declined while the older models appear to hold their value better,” said AADA chief executive James Voortman.
Trends Across States and Territories
Victoria was the only state to see an increase in overall used car sales, with a modest 0.2 per cent rise to 49,463 vehicles sold. All other states recorded declines.
For EVs specifically, the new report provided a detailed breakdown for the first time. Every state except the Northern Territory saw increases in both listings and sales. However, the average time to sell a used EV jumped to 67.3 days, up from 55 days in August.
Best-Selling Models and Value Trends
The MG4 EV was the standout performer in the EV market, with sales soaring by nearly 85% compared to September, making it the top-selling used EV for the month. It sold twice as many units as its nearest competitor, the Tesla Model 3.
Among all used vehicles, the Ford Ranger and Toyota Hilux remained the nation’s top sellers. Small passenger vehicles continued to lead in value retention, with the Kia Picanto achieving the highest retention rate in the 2 to 4-year category at 95.6 per cent. For SUVs, the Suzuki Jimny was the leader, holding 113.4 per cent of its value in the same age bracket and 114.0 per cent in the 5 to 7-year category.
However, the report noted that retained values across all vehicle segments and age categories are trending downward. EVs in the 1 to 3-year age range experienced the most significant decline in value, while older models held their value better.
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