Used car sales have surged despite a reduction in listings, according to the latest Automotive Insight Report (AIR) from the Australian Automotive Dealer Association (AADA) and Autograb. The report shows that 214,588 used cars were sold in July, an 11.6 per cent increase from June. Meanwhile, listings dropped by 5.8 per cent to 285,133. Additionally, the average time to sell a car has remained steady at 43.6 days, slightly lower than in June and the lowest in the past year.
“With the start of the new financial year, buyers have flocked to the used car market, taking advantage of better availability and more affordable prices as they deal with rising living costs,” said AADA CEO James Voortman.
Sales Across States and Territories
Sales across different states and territories showed some interesting trends in July. Tasmania was the only state where used car supply actually went up, though only by a slight 0.3 per cent. On the other hand, the Northern Territory saw a significant drop in sales, falling by 15.6 per cent.
Most other states experienced a decrease in used car listings. Victoria stood out with a strong rebound, leading with a 14.1 per cent increase in sales. The Australian Capital Territory also saw a small rise of 1.4 per cent. The Northern Territory’s decline in sales was the most noticeable.
Demand Across Vehicle Categories
There were notable shifts in demand across various vehicle categories. Passenger vehicles saw the highest growth, with demand increasing by 13.1 per cent to reach 88,686 units. This surge reflects strong buyer preference for these vehicles.
In contrast, the market for electric vehicles (EVs) faced challenges. Despite a 12.2 per cent rise in demand for EVs, their supply dropped significantly by 16.1 per cent. This suggests that while interest in EVs is growing, availability of used EVs is tightening as owners hold onto their vehicles longer.
Shifts in Listings
“One of the trends we have seen emerge from the start of the year in an increase in the proportion of cars being listed privately with a subsequent reduction in Dealer listings. Vehicles sold by Dealers have remained around the 40 per cent mark suggesting they are pricing vehicles to sell,” said AutoGrab Chief Commercial Officer Saxon Odgers.
“Retained values continue to decline with every vehicle segment across every age category experiencing a drop in value for the month,” he added.
Average Retained Values
Overall, retained values continue to decline across most segments, but small passenger vehicles have proven to be the most resilient.
The Toyota Corolla and Toyota Yaris are leading the pack, holding their value exceptionally well. The Corolla retains 97.6 per cent of its value in the 2-4 year old category, while the Yaris follows closely behind with a 96.7 per cent retention rate in the 5-7 year old bracket.
SUVs like the Suzuki Jimny are also performing well, retaining over 115 per cent of their value in both the 2-4 and 5-7 year old categories. This strong performance highlights their continued popularity and demand in the used market. Other segments have seen more modest retention rates, reflecting broader market trends and shifting consumer preferences
These figures illustrate the importance of vehicle choice when it comes to retaining value over time, especially in a fluctuating market. Buyers looking for long-term value might want to keep an eye on these high-performing models.
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