The October edition of the Automotive Insight Report (AIR) saw used car sales drop by 3.2% to 202,355 compared to last month. Meanwhile, used car listings have grown by 1% to 317,861, indicating a buyers market as used car supply continues to outpace demand.
“The average days to sell has increased from 46.4 days last month to 49 days in October, the highest it has been since December last year,” said AADA CEO Mr James Voortman.
“When it comes to fuel types, petrol and diesel cars still account for almost 95% of all sales. However, consumers are gradually turning towards more fuel efficient options with a greater variety and more affordable options now available. Sales of conventional petrol and diesel vehicles have dropped by 4.5% and 2.3%, while PHEVs are still the top pick for buyers, with EVs close behind – both seeing strong sales jumps of 27.1% and 22.3%,” he said.
“As is to be 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 Mr Voortman.
Small vehicles in the passenger segment maintain their lead in strongest value retention, with the Kia Picanto replacing the Audi RS3 from last month, at 95.6% in the 2-4 category. The Toyota Yaris remains unbeatable in the 5-7 year old category at 95.4%. In the SUV category, the Suzuki Jimny continues to lead in both the 2-4 year and 5-7 year old category at 113.4% and 114.0% respectively.
Given the interest in EVs, the October AIR has provided a snapshot of Australia’s used EV market which is reflected in retained values well below average.
“Average days to sell used EVs has climbed to 67.3 days, which is no surpise given the significant oversupply of used EVs. With Trump’s presidential win and further anticipated rise in tariffs on Chinese vehicles, we’re seeing more Chinese-made cars – especially EVs – heading for Australia,” said Mr Voortman. “This is pushing car makers to offer steeper discounts on new cars, making it difficult for used-car sellers to move stock,” he said.
“The MG4 EV was by far and away the best selling used EV in October, recording sales growth of almost 85% on the previous month and selling double the units of its next closest competitor,” he said.
HIGHLIGHTS FROM THE AIR FOR OCTOBER
- 202,355 vehicles were sold in October, a decline of 3.2% compared to the previous month.
- Victoria was the only state to observe a jump in sales by 0.2% to 49,463.
- 317,861 used cars were listed for sale in September, an increase of 1 % from the previous month.
- Northern Territory was the only state to observe a significant decline in sales of used EVs.
- Average time to sell a used car has increased to 49 days.
- Every vehicle segment across every age category experienced a drop in retained value for the month.
- The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux.
- In EVs, MG MG4 was the best-selling vehicle followed by the popular Tesla Model 3.
