Key Headlines
- National used vehicle sales increased 1.2 per cent to 261,166, with growth largely driven by private sellers and older vehicles.
- Dealer listings of demonstrator and near-new vehicles increased 12.1 per cent since July to 73,708, while retained values continued to decline.
- Dealer stock of demonstrator and near-new EVs increased 68.8 per cent since July, reaching 9,656 vehicles.
Market Snapshot
Data from the Australian Automotive Dealer Association (AADA) and AutoGrab reveals growing demonstrator and near-new vehicle stock as dealers face increasing pressure across Australia’s new and used vehicle markets.
Australia’s used vehicle market recorded its fourth consecutive monthly increase in sales during October, rising 1.2 per cent to 261,166 vehicles. Active listings increased 5.5 per cent to 411,479 vehicles.
Private sellers drove much of the month’s growth, particularly among older vehicles, while dealers accounted for 42.4 per cent of total used vehicle sales.
Demonstrator Stock Builds
The latest figures highlight growing pressure on dealers to move demonstrator and near-new vehicles, with stock continuing to accumulate despite increased sales activity. Demo vehicles, up to 1 year old, made up 7.1 per cent of sales but 13.9 per cent of listings.
Demonstrator listings rose to 57,262 vehicles in October, up from 53,160 in July. At October’s sales rate, this represents 3.1 months of supply, compared to 1.6 months across the broader used vehicle market.
Dealers Carry Growing EV Stock
Looking more broadly at demonstrator and near-new vehicles up to two years old, dealer stock rose in every month of the quarter, from about 65,730 in July to 73,708 in October.
EV stock grew fastest. Dealers held 9,656 near-new EVs in October, up 68.8 per cent from July. Since July, dealers have added 7,980 demonstrator and near-new vehicles to their stock, with EVs accounting for more than half of that increase.
Looking at sales in the past month, EV sales continued to grow in October, increasing 14 per cent to 6,175 vehicles.
Dealers drove growth in used EV sales during October, with sales increasing 19.4 per cent while private EV sales remained relatively steady. Dealers accounted for 78.9 per cent of all used EV sales during the month.
General Market Statistics
- 261,166 vehicles sold in October, a 1.2 per cent increase on September.
- 411,479 vehicles listed for sale in October, a 5.5 per cent increase month on month.
- Dealer share remained steady at 42.4 per cent of sales.
- Average days to sell dropped to 42.6, after last month’s high-water mark for the year so far.
Reaction
AADA Deputy CEO Brian Savage said the growing volume of demonstrator and near-new vehicles highlighted the challenging conditions facing Australian new car dealers.
“Dealers are operating in an increasingly competitive market, with more brands, ambitious sales targets and growing pressure to manage stock levels,” said AADA Deputy CEO Brian Savage.
“These figures highlight why headline new vehicle sales numbers don’t necessarily tell the full story. Dealers are carrying significant amounts of stock, and when vehicles take longer to sell and lose value, it puts further pressure on already stretched businesses,” Mr Savage said.
“With more brands entering the Australian market and operating costs continuing to rise, it’s increasingly important that stock levels and sales expectations reflect actual customer demand,” he said.
“Demo sales have risen 27 per cent since July, but dealers still had 57,262 demonstrator vehicles listed in October. At October’s sales rate that is 3.1 months of supply, almost double the 1.6 months across the wider used market,” said AutoGrab Chief Commercial Officer Saxon Odgers.
“Retained values fell in 16 of the 18 segment and model-year groups we track, and the 2025 model year recorded the largest falls. The average 2025 SUV went from 89.9 to 87.8 per cent of its original RRP in a single month, which is about $1,050 on a $50,000 vehicle.”
“With demos sitting at almost double the supply of the wider used market and retained values falling month on month, dealers need to price every demo and used car to the market from the day it’s listed, because holding out for an inflated retail price only slows stock turn and turns today’s demo into tomorrow’s aged-stock problem.”
“Dealers held 9,656 demonstrator and near-new EVs in October, up 68.8 per cent since July. Dealer EV sales are growing, up 19.4 per cent in October, but used EV listings grew faster than sales, so EV sales per 100 listings fell from 50 to 45,” Mr Odgers said.