The December edition of the Automotive Insight Report (AIR) shows that the used car market observed a 3.8% drop in supply after months of oversupply, with listings falling to 322,532. However, the market continues to favour buyers with sales observing a significant decline of 8.1% to 181,724, offering consumers ample opportunity to strike a good deal during the festive period.
“Average days to sell have increased to 48.7, the highest since October, suggests that sellers are dealing with slower moving stock. This trend is expected to continue in 2025 as the growing oversupply of new vehicles creates a spillover effect into the used car market,” said AADA CEO James Voortman.
“All states but Northern Territory and Western Australia experienced a fall in the number of cars listed for sale,” he said.
Retained values remain on the downward trajectory, with almost every vehicle segment across every age category experiencing a drop in value for the month, with the exception of LCV-Utes in the 2-5 year age categories. Oversupply of new vehicles is negatively impacting retained values for used EVs as well, potentially prompting sellers to hold on to their vehicles for shorter periods of time.
“Average days to sell a used EV have returned to August levels, with Western Australia and South Australia experiencing increased demand, as reflected in a 19.8% and 10.7% rise in EV sales, respectively,” said Mr Voortman.
In the passenger segment, the Ford Mustang holds value best at 97.0% in the 2-4 year age category while the Toyota Yaris maintains top spot at 97.5% in the 5-7 year age category. In the SUV category, the Suzuki Jimny continues to hold top spot at 110.7% in the 2-4 year but is replaced by the Toyota Landcruiser in the 5-7 year old category at 87.9%.
HIGHLIGHTS FROM THE AIR FOR DECEMBER
- 181,724 vehicles were sold in December, a decline of 8.1% compared to the previous month.
- Northern Territory and Western Australia were the only two states experiencing a jump in listings by 7.5% and 0.5% respectively.
- 322,532 used cars were listed for sale in December, a decline of 3.8% from the previous month.
- All but Western Australia and South Australia experienced a decline in used EV sales.
- Average time to sell a used car has gone up to 48.7 days.
- Every vehicle segment across every age category experienced a drop in retained value for the month, with the exception of LCV-Utes in the 2-5 year age categories.
- The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux.
- In EVs, MG MG4 regained its position as the best-selling vehicle.