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AIR: Buyer’s Market as Used Car Listings Surge

Posted on by Urmika Deb

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.
VIEW OCTOBER AIR

VFACTS October 2024

Posted on by Urmika Deb

New car sale figures published by the Federal Chamber of Automotive Industries show a decline in sales by 7.9% to 98,375 in October compared to the same month last year. Year to date, sales are up by 1.9% on the same period in 2023.

Petrol and diesel vehicle deliveries experienced a decline of over 12% and 19% respectively, highlighting the shift in buyer preferences from conventional ICE vehicles. Hybrids, on the other hand, recorded the highest growth in October 2024 compared to same time last year, rising by 54.6% to 14,176.

The AADA has assessed VFACTs Top 10 Makes & Models YTD, ranking them by volume. The AADA has also analysed new car sales figures by state for both the month of October and YTD, as well as fuel types and market segments

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AIR: Used Cars Taking Longer to Sell Amid Oversupply

Posted on by Urmika Deb

The September edition of the Automotive Insight Report (AIR) shows that while we saw a modest 1% uptick in used car sales to 209,102, used car listings continued to increase this month by 5.2% to 314,672, continuing a trend of month-on-month increases in listings since May.

“The average days to sell has increased to 46.4, the highest it has been since January. This suggests that the growing oversupply of used vehicles is having an impact on sellers, and with retained values continuing to head south, now looks to be a good time for motivated consumers to seek a deal in a buyers market,” said AADA CEO Mr James Voortman.

“Looking at the states, supply increased across Australia except in the Northern Territory, however demand for used vehicles is a mixed bag, with some states recording significant decreases (ACT down 11.2%) and others recording moderate increases (NSW up 3.5%),” he said.

“Sales of used EVs have surged by 17.3% compared to last month, marking the highest monthly increase observed this year. However, EVs remain by far the most oversupplied fuel type, a trend which has been compounded by a 23% surge in EVs listed in September,” said Mr Voortman.

“Retained values steadily declined, with almost every vehicle segment across every age category experiencing a drop in value for the month, and with more granular retained values data released this month, we can see that Utes are holding their value best at the two year mark but are quickly overtaken by passenger vehicles in the 3-7 year old categories,” he said.

Small vehicles in the passenger segment continue to demonstrate the strongest value retention, with the Audi RS3 claiming the top position at 101.9% in the 2-4 category, breaking Toyota’s longstanding reign. However, the Toyota Yaris maintains the lead at 94.7% in the 5-7 year old category. In the SUV category, the Suzuki Jimny remains dominant in the 2-4 year old category at 113.0%, while the Toyota Land Cruiser has taken the top spot in the 5-7 year-old segment at 88.3%.

HIGHLIGHTS FROM THE AIR FOR SEPTEMBER

  • 209,102 vehicles were sold in September, recording a jump of 1.1% compared to the previous month.
  • Northern Territory was the only state to observe a decline in supply by 9.1% to 1558 compared to August.
  • 314,672 used cars were listed for sale in September, an increase of 5.2% from the previous month.
  • ACT (-11.2%) and NT (-6.0%) continue to be the worst performers in terms of used car sales.
  • Average time to sell a used car is 46.4 days, just under the high point of 47.7 this year in January.
  • Retained values have consistently declined with passenger vehicles holding their value best in the 3-7 year old category and utes holding their value best in the 2 year old category.
  • The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux. 
VIEW SEPTEMBER AIR

VFACTS September 2024

Posted on by Urmika Deb

New car sale figures released by the Federal Chamber of Automotive Industries show a drop in sales by 12.4% to 97,020 in September compared to the same month last year. Year to date, sales are up by 3.1% on the same period in 2023.

Automotive trends, including a rise in hybrids and falling EV demand continue, with hybrids recording an 87% growth rate over 2023. On the contrary, EV sales decreased to 3,561 from 8,821 in September 2023, nearly halving despite the increasing supply of Chinese EVs and subsequent price discounts.

The AADA has assessed VFACTs Top 10 Makes & Models YTD, ranking them by volume. The AADA has also analysed new car sales figures by state for both the month of September and YTD, as well as fuel types and market segments. 

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AIR: August Used Car Market Sees Budget Savvy Buyers Turning to Hybrids

Posted on by Urmika Deb

The August edition of the Automotive Insight Report (AIR) shows softening used car sales
with the exception of hybrids, which are proving popular for cost conscious buyers.

The monthly used car market data published by the AADA and Autograb shows a jump in
the listings of used cars by 4.9% to 299,147 while sales declined by 3.6% to 206, 804. 

Despite the increase in supply, the average days to sell have continued to decrease,
reaching a new low of 42.7 over the past 12 months, indicating sellers are motivated and
buyers are ready to snap up a good deal.

“In line with the new car sales trends, demand has decreased for used cars, with all states,
except South Australia and Tasmania, recording a drop in sales,” said AADA CEO James
Voortman.

“Western Australia saw the largest increase in used car supply, with listings up by 15.1%. In
contrast, the Australian Capital Territory and Northern Territory were the only regions with a
tightening market, recording significant supply drops of 15.4% and 14.9%, respectively,” Mr
Voortman said. 

“Supply of used cars increased across all vehicle categories, with SUVs and LCVs showing
the highest growth, rising by 6.8% and 10.2%, respectively. This surge could partially explain
the greater decline in retained values of SUVs and LCV – utes relative to passenger
counterparts, leading sellers to keep their vehicles for shorter periods,” he said.

“There are some correlations to the new car market in terms of popularity of hybrid vehicles
with hybrids experiencing an increase in sales, while petrol, diesel and electric all
experienced a drop in sales,” Mr Voortman said.

“In comparison to July, the used EV market is now facing an oversupply, with sales seeing
the largest drop among all fuel types, down 8.3% to 1,637. This may result in more
competitive pricing, shaping buyer preferences as disposable incomes erode,” he said.

“Retained values continue to decline with every vehicle segment across every age category
experiencing a drop in value for the month,” he said.

Small vehicles and performance vehicles in the passenger segment continue to hold their
value the best, with the Toyota 86 replacing the Toyota Corolla for the top position at 98.4%
in the 2-4 year old category and the Toyota Yaris maintaining the lead at 94.8% in the 5-7
year old category. In the SUV category, the Suzuki Jimny continues to dominate, holding the
top spot in both the 2-4 (114.0%) and 5-7 year old (116.4%) SUV categories. 

HIGHLIGHTS FROM THE AIR FOR AUGUST

  • 206,804 vehicles were sold in August, a decrease of 3.6% compared to the previous month.
  • Western Australia recorded the highest jump in supply of used cars, rising by 15.1% to 31, 015 whereas South Australia and the Northern Territory were the only two states where demand increased, by 0.3% and 1.8% respectively.
  • 299,147 used cars were listed for sale in August, an increase of 4.9% from the previous month.
  • Sales were weakest in ACT (-29.1%) and Northern Territory (- 37.4%), reflecting a significant drop in sales compared to last month.
  • Average time to sell a used car is 42.7 days, the lowest it has been over the past 12 months.
  • Retained values continue their gradual decline with passenger vehicles holding their value best in the 2-4 year age bracket (81.1%) as well as for the older 5-7 year category (67.3%).
  • The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux. 
VIEW AUGUST AIR

VFACTS August 2024

Posted on by Urmika Deb

New car sale figures released by the Federal Chamber of Automotive Industries show a 10.6% decline in August to 98,328 sales compared to the same month last year. Year to date, sales are up by 5.3% on the same period in 2023.

Toyota topped new car sales, with the Toyota RAV4 being the best-selling car for the month of August, surpassing entire lineups of Hyundai and Mitsubishi brands. Hybrid and Plug-in hybrid vehicle sales observed significant growth and were up by 44.9% and 119.8% respectively, compared to the same month last year.

The AADA has assessed VFACTs Top 10 Makes & Models YTD, ranking them by volume. The AADA has also analysed new car sales figures by state for both the month of August and YTD, as well as fuel types and market segments.

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AIR: Used Car Market Tightens as Sales Surge in July

Posted on by Urmika Deb

The July edition of the Automotive Insight Report (AIR) indicates that the market for used cars is tightening, with rising sales and falling listings leading to a reduced gap between demand and supply.

The monthly used car market data put out by the AADA and Autograb shows a drop in listings of used cars by 5.8% to 285,133 while sales have observed a significant jump of 11.6% to 214,588.

The average days to sell have stayed relatively steady compared with last month at 43.6, yet this figure is still marginally lower than June and is the lowest in the past 12 months.

“With the commencement of the new financial year, buyers have flocked to the used car market taking advantage of better supply and lower prices as they make an effort to escape the rising cost-of-living pressures,” said AADA CEO James Voortman.

“All states except Tasmania have experienced a drop in used car listings, while Northern Territory is the only state where sales remain sluggish, with a notable decline of 15.6%. However, this reduction in supply should be considered in the context of a significant increase in supply since the start of the year,” he said.

“Demand for used cars has strengthened across all categories, with passenger vehicles showing the largest growth, rising by 13.1% to 88,686. Meanwhile, the supply of EVs saw the most significant decline (-16.1%), even as demand increased by 12.2%. This suggests that people are holding onto their EVs for longer, tightening the supply in the used EV market,” he said. 

“One of the trends we have seem 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% 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 said.

Small vehicles in the passenger segment have once again proven to hold their value the best, with the Toyota Corolla and Toyota Yaris maintaining their top spots at 97.6% in the 2-4 year old category and 96.7% in the 5-7 year old category, respectively. While the Suzuki Jimny continues its retained value reign, holding the top spot in both the 2-4 (115.6%) and 5-7 year old (115.8%) SUV category.

HIGHLIGHTS FROM THE AIR FOR JULY

  • 214,588 vehicles were sold, an increase of 11.6% compared to the previous month.
  • Tasmania was the only state to experience an increase in the supply of used cars, rising by 0.3%, while the Northern Territory was the only state to see a decline in demand, falling by 15.6%.
  • 285,133 used cars were listed for sale in July, a drop of 5.8% from the previous month.
  • Sales in Victoria rebounded to take the top position (14.1%), while ACT (+1.4%) and NT (-15.6%) were weakest in terms of sales.
  • Average time to sell a used car is 43.6 days, the lowest it has been over the past 12 months.
  • Retained values continue their gradual decline with passenger vehicles holding their value best in the 2-4 year age bracket (82.1%) as well as for the older 5-7 year category (68.1%).
  • The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux. 
VIEW JULY AIR

VFACTS July 2024

Posted on by Urmika Deb

New car sale figures released by the Federal Chamber of Automotive Industries show a 2.7% increase in sales in July compared to the same month last year. Year to date, sales are up by 7.9% on the same period in 2023.

A total of 99,486 new cars were sold in July 2024. Hybrid vehicle sales have continued to increase as consumers shift their preferences to adjust to rising cost-of-living pressures and increasing fuel prices. In July, 18,039 new hybrid vehicles were sold, representing an 88.4% increase, plug in hybrid vehicles are also up 128.9% compared with July 2023.

The AADA has assessed VFACTs Top 10 Makes & Models YTD, ranking them by volume. The AADA has also analysed new car sales figures by state for both the month of June and YTD, as well as fuel types and market segments.

DOWNLOAD PDF

AIR: Used Car Listings Increase at the end of the Financial Year

Posted on by Urmika Deb

The June edition of the Automotive Insights Report (AIR) shows a growing oversupply of used cars in Australia as the gap widens between cars listed for sale and cars sold at the end of the financial year. 

The monthly used car market data put out by the AADA and AutoGrab shows that listings grew by 2.1% in June while sales remained largely flat increasing marginally by 0.3%.

The increase in supply has seen used vehicle values decrease across the board, with discounting leading to customers quickly snapping up bargains and average days to sell hitting a 12-month low.

“Buyers are benefitting from the fact that there are a greater variety of used vehicles available for sale at lower prices. Nevertheless, we have not seen a surge in sales relative to listings which may be a result of softer economic conditions as evidenced by the drop in new car sales in June,” said AADA CEO James Voortman.

“The outlier is the Western Australian market which saw an almost 13% drop in used car listings along with a healthy 6.1% increase in sales, meaning the supply situation in the West is tighter than the east coast,” said Mr Voortman.

“Light commercial vehicles, such as utes and vans have greater levels of oversupply than passenger vehicles and SUVs. Utes were the only segment which experienced a decline in sales in June, although they still made up three (Ranger, Hilux and Triton) of the four top selling used vehicles,” he said.

“The declining trend in retained values continues with every vehicle segment across every age category experiencing a reduction in value for the month,” he said.

Vehicles which hold their values best are now almost exclusively small vehicles in the passenger segment with the Toyota Corolla being the best performer in the 2-4 year old (99.8%) segment and the Toyota Yaris in 5-7 year old (99.0%) segment. In the SUV segment the Suzuki Jimny is the frontrunner, holding its value at an extraordinary 116.9% in the 2-4 year old category. 

HIGHLIGHTS FROM THE AIR FOR JUNE

  • 302,848 vehicles are listed for sale, an increase of 2.1% compared to the previous month.
  • Listings experienced the highest increase in the ACT (12.5%), the Northern Territory (9.7%) and Queensland (7.5%). Western Australia was an outlier with a 12.9% reduction in listings.
  • 192,266 used cars were sold in June, an increase of 0.3% from the previous month.
  • Sales were strongest in the NT (12.4%) and weakest in Victoria (-4.6%).
  • Average time to sell a used car is 43.8 days, the lowest it has been over the past 12 months.
  • Retained values continue their gradual decline with passenger vehicles holding their value best in the 2-4 year age bracket (83.3%) as well as for the older 5-7 year category (69.1%).
  • The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux.
VIEW JUNE AIR

2024 AADA Convention & Expo

Posted on by Urmika Deb

The 2024 AADA Convention & Expo is a few weeks away, on 24 & 25 July, at the Melbourne Convention & Exhibition Centre.

We encourage you to attend this vital industry event as we present our members with our most comprehensive dealership business program ever and showcase our industry to governments and policymakers.

Our exciting program meets the issues facing Dealers and their management teams in this challenging market. The program includes 55 automotive industry speakers and 32 dealership centric business sessions over two days covering operational and industry issues such as:

  • Cyber Security and Protecting Your Dealership Business.
  • Dealership Financial Performance – The Top 5 Risks and Opportunities
  • Electric Vehicles – What’s Coming and What it Means for Australia
  • Managing Skilled Migration
  • AI and the Role it Plays in Dealership Marketing
  • Data Management and Your Legal Responsibilities

You can view our complete program and schedule on our website.

AADA Member registration fees are excellent value at the low cost of $895 inc GST for the first registration and $695 inc GST for each additional delegate from your dealership.

Join us at AADA 2024 and help us show our collective industry strength.

REGISTER NOW