Australia’s used car market saw a solid rebound in May 2025, with sales rising by 5.4 per cent to reach 192,692 vehicles. The latest Automotive Insights Report (AIR) from the Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, also showed a similar rise in used car listings.
AADA Chief Executive Officer James Voortman said more people may have traded in their older vehicles thanks to end-of-year discounts in the new car market. He explained that these deals likely encouraged buyers to upgrade, which in turn boosted the number of used cars for sale.
Market Highlights
SUVs remained the most popular vehicle type in May, with sales rising by 7.9 per cent compared to April. A total of 83,442 SUVs were sold during the month, making them the clear favourite among Australian buyers.
Used electric vehicles (EVs) saw a big jump in popularity. Sales rose by 37.5 per cent in May, compared to an 8.4 per cent increase in April. Mr Voortman said this points to a growing shift in buyer preferences towards cleaner, low-emission transport options.
Used vehicles also sold more quickly in May. The average time to sell dropped to 47.6 days representing the lowest so far in 2025. This indicates that stock is moving faster, helping dealers keep up with demand and keep their inventory fresh.
Smaller cars continued to hold their value well. The Audi RS3 replaced the Ford Mustang as the top performer in the 2–4 year-old passenger car category, retaining 105.8 per cent of its value. In the 5–7 year age range, the Toyota Vitz remained the leader, holding 100.3 per cent. For small SUVs, the Suzuki Jimny stood out by keeping 111.8 per cent of its original value – one of the highest retention rates in the market.
While most states reported growth in used car sales, the Northern Territory was the only area to experience a decline. Sales dropped by 12.4 per cent, with just 648 used cars sold in May.
Top Picks and Dealer Favourites
The Ford Ranger and Toyota Hilux stayed at the top of the list for most popular used vehicles sold by dealers. In the EV space, the Tesla Model 3 and Model Y continued to lead in buyer interest.
Mr Voortman said the latest data shows renewed confidence in the used car market and greater interest in low-emission vehicles. The full May 2025 Automotive Insights Report can be found here.
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