2,074,535 used cars were sold throughout 2023 according to the Automotive Insights Report (AIR) published by the Australian Automotive Dealer Association (AADA) and AutoGrab.
This represents an increase of 34.4 percent compared to 2022 with the used car market peaking in November. According to the AADA, this can be attributed to factors including declining process, improved stock of new cars, and the record year for the new car market.
Furthermore, used car prices experienced a monthly decline of 1 to 1.5 percent, accompanied by an increase in the days required to sell. This reflects a changing landscape in consumer preferences and market dynamics.
“This data demonstrates the significance of the used car market in Australia with more than two million used cars sold in 2023,” said AADA CEO Mr. James Voortman.
“For every new car sold, 1.7 used cars were sold, confirming that most Australians are deciding to purchase used cars,” he added.
Meanwhile, AutoGrab Chief Commercial Officer, Saxon Odgers said that the robust demand for used cars last year is caused by the growing population and the impact of cost-of-living pressures on buying power.
The good news for those looking to purchase a used car is that we’ve seen a clear downward price trajectory since March 2023 following a surge of new vehicle supply, with this pattern anticipated to persist through the first half of 2024,” he said.
Market Leaders
According to the report, petrol and diesel vehicles dominated used car sales. It accounted for more than 96 percent of the market.
The report highlighted that Utes and light commercial vehicles held their values above the average across all age groups. Meanwhile, SUVs performed the worst in retained value, sitting well below the average for all age groups.
Meanwhile, the used EV market experienced almost double the supply and sales, yet EVs represented only 0.7 percent of the market share. It has shown below-average retained value and longer selling times than petrol and diesel cars.
Toyota secured the top spot as the leading used car brand with a 16.6% market share.
On the other hand, the Ford Ranger emerged as the top-selling used car with 65,938 units, narrowly surpassing the Toyota Hilux.
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