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.
Author: Urmika Deb
AIR: Used Car Listings Increase at the end of the Financial Year
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.
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VFACTS June 2024
After steady growth in new car sales during the first half of the year, figures released by the FCAI reveal a 4.2% drop in sales for June compared to the same month last year. Year to date, sales are up by 8.7% on the same period in 2023.
A total of 119,659 new cars were sold in June. Hybrids, PHEVs, and electric vehicles observed growth, while petrol vehicles declined by 7.3% compared to 2023, reflecting shifting consumer preferences ahead of the New Vehicle Efficiency Standard (NVES).
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.
AIR: Used Car Market Activity Ramps Up Ahead of EOFY
The May edition of the Automotive Insights Report shows the number of used cars for sale in Australia continuing to grow, putting downward pressure on prices, which in turn is leading to an uptick in sales.
Used car listings sustained their growth of recent months increasing by 7.2% from the previous month while sales of used cars increased by 4.4%.
“Ongoing strength in the new car market means that we are seeing an increased supply of used vehicles coming to market, providing consumers with more options at more affordable price points,” said AADA CEO James Voortman.
“We expect this trend to continue, particularly in the next few months leading into the end of the financial year, which traditionally sees increased activity in both the new and used car market,” Mr Voortman said.
“Over the past month we have seen a marked reduction in used cars being listed by Dealers as more Australians seek to sell their cars privately. With the prevalence of online scams, odometer fraud and the lack of statutory protections when buying private, consumers need to exercise due diligence when engaging in a private-to-private used car transaction,” Mr Voortman said.
“We are also seeing strong sales results for lower emissions vehicles with Hybrids (+6.6%), EVs (+8.0%) and PHEVs (+16.6%) growing above average. EVs were the only fuel type to experience a reduction in supply, which is to be expected given the significant mismatch between demand and supply of used EVs,” he said.
“The average time to sell a used car has increased slightly to 45.5 days, a likely product of the improving supply situation which is also driving a reduction in retained values across all segments,” Mr Voortman added.
“Vehicles with the strongest retained values are largely sought after and reliable Japanese makes in both the passenger car and SUV segments as well as in the 2-4 year and 5-7 year categories,” he said.
“The Ford Ranger has built on its impressive lead as Australia’s top selling used vehicle and is close to breaching the 6,000 monthly sales mark. The Toyota Hilux comes in second well ahead of the rest of the pack which includes four utes in the top 10,” he said.
“With the end of the financial year nearly here, Australians are making major selling or purchasing decisions, which has led to the used car inventory approaching an oversupply. This is not an unexpected shift and has been met with increased demand and sales for used cars across every state in the country. The retained value of vehicles has continued to fall while the days to sell has increased, reflecting the oversupply of used vehicles,” said Saxon Odgers, Chief Commercial Officer of AutoGrab.
“It is also worth highlighting May’s increase in private inventory for sale, in comparison to April. This reflects past years, as we see an increase in vehicle transactions at the end of the financial year. We expect this to increase further in June and see great buying opportunities as a result,” said Mr.Odgers.
HIGHLIGHTS FROM THE AIR FOR MAY
- 296,542 vehicles are listed for sale, an increase of 7.2% compared to the previous month.
- Listings grew in every state and territory with South Australia experiencing the highest increase with 8.5% and Tasmania being the lowest at 2.0%%.
- 191,625 used cars were sold in May, an increase of 4.4% from the previous month.
- Sales grew in every state and territory with Queensland and the ACT experiencing the biggest monthly increase in sales of 7.3%.
- Petrol and Diesel vehicles dominate the used car market, but there has been strong growth in lower emissions vehicles, such as hybrids, EVs and PHEVs.
- Average time to sell a used car is 45.5 days, an increase of over a day from the previous month.
- Retained values continue their gradual decline with passenger vehicles holding their value best in the 2-4 year age bracket (84.1%) as well as for the older 5-7 year category (69.8%).
- The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux.
VFACTS May 2024
New car sales figures released by the Federal Chamber of Automotive Industries reveal another month of strong sales, with buyers favouring hybrid vehicles over electric ones.
A total of 111,099 new vehicles were sold in Australia in May 2024, observing a 5.1% jump compared to same month last year. Year to date sales saw a 12.2% increase on the same period in 2023.
The AADA has assessed VFACTs Top 20 Brands & Models for May 2024, ranking them by volume.
2024 AADA Convention & Expo: A Must-Attend Event
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