Archives: Dealer Bulletins

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. Despite this, the market remains buyer friendly as sales experienced a significant drop of 8.1% to 181,724 units, offering consumers plenty of opportunities to secure a good deal during the festive season.

The average days to sell have risen to 48.7, the highest since October, indicating that sellers are dealing with slower-moving stock. This trend is expected to persist into 2025 as the increasing oversupply of new vehicles continues to impact the used car market.

Across the states, all but Northern Territory and Western Australia experienced a fall in used car listings.

Retained values remain on the downward trajectory, with almost every vehicle segment across every age category experiencing a drop in value for the month, except 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.

The average days to sell a used EV have returned to August levels, with Western Australia and South Australia experiencing increased demand, reflected in a 19.8% and 10.7% rise in EV sales, respectively.

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.

Dealers seeking more granular and local data can contact AutoGrab directly for a tailored solution.

If you are a Dealer of a contributing brand and would like access to the monthly report please email Policy and Communications Officer Urmika Deb on udeb@aada.asn.au.

VFACTS for December 2024 and the full calendar year were released this week by the Federal Chamber of Automotive Industries.

New car sales in 2024 surpassed the previous record set in 2023, observing a 0.3% increase to 1,220,607 sales. While there was a 2.7% drop in December 2024 sales compared to the same time last year, the overall growth for the year could be attributed to the influx of more affordable Chinese vehicles into the market.

Toyota retained its top spot for 2024, selling 241,296 cars. Despite the arrival of new makes, Toyota remains the most popular car brand for the year, increasing its market share from 17.7% in 2023 to 19.8% in 2024. The top four brands remained unchanged, with Ford (100,170), Mazda (95,987), and Kia (81,787) following Toyota’s lead. Meanwhile, Hyundai was replaced by Mitsubishi in fifth place with 74,547 sales.

While Battery Electric Vehicles (excluding Tesla and Polestar sales from July 2024) recorded a decline in sales by 14.5% compared to 2023, consumers are increasingly opting for fuel efficient vehicles with sale of hybrid vehicles rising by 76% to 172,696 units sold in 2024.

Across vehicle types, consumers continue to hold a strong preference for SUV and light commercial vehicles, collectively representing around 79% of total sales.

With the New Vehicle Efficiency Standard (NVES) commencing this month, 2025 is expected to be a challenging year for the industry as Dealers and OEMs respond to the changing policy environment while continuing to maintain business viability.

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 December and YTD, as well as fuel types and market segments.

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The Australian Government is supporting the automotive sector to sell, service and repair more electric vehicles by providing rebates for EV chargers.

This program provides eligible applicants, including Dealers who meet the eligibility criteria, with rebates for EV charging equipment purchased on or after 26 March 2024.

The Rebate Stream guidelines for the Dealership and Repairer Initiative for Vehicle Electrification Nationally (DRIVEN) Program, are now available for automotive dealerships and EV repairers to view.
 
The Rebate Stream will open on 22 January 2025.

The rebate is capped at $20,000 per eligible dealership site. You can apply to receive this rebate for any number of plugs, up to the cap. However, you can only receive a rebate under the program once, per each eligible site.

You can receive up to $20,000 for each of the automotive manufacturers you sell from the eligible site (i.e. for each of the franchise agreements that apply to your showroom) and a separate application will need to be made for each.

Please note that the Business Grants Hub contact centre will be unattended from 25/12/2024 – 01/01/2025 inclusive.

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In anticipation of the commencement of the New Vehicle Efficiency Standard, the AADA has produced a fact sheet for members to understand key dates, how the NVES will work and dealer obligations.

 

 

 

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The November edition of the Automotive Insight Report (AIR) indicates an ongoing cooling demand for used cars, with sales experiencing a decline of 2.3% to 197,652 compared to last month. In contrast, used car listings continue to grow, rising by 5.4% to 335,148 in November.

This trend is expected to persist as the introduction of more affordable new vehicles encourages buyers to upgrade earlier, increasing the supply of used cars and influencing price sensitivity.

The Northern Territory stands out among the states, with a tight market reflected by a 30.5% increase in sales and a 12.3% decline in listings.

Sales have declined across all fuel categories, with EVs experiencing the largest drop (down 8.3%), followed by PHEVs (down 7.4%). This could be attributed to the growing supply of cheaper new BEV and PHEV vehicles entering the market, expanding used-car inventory and driving up holding costs.

Retained values continue to steadily decline, with almost every vehicle segment across every age category experiencing a drop in value for the month, with the exception of passenger vehicles in 3-4 year old category. On the other hand, retained values of used EVs in the 5-year-old category have dropped to 48.5% (down 4.7% from last month) in November, reflecting the slowing demand for used EVs.

In the passenger segment, Audi RS3 retains value the most at 97.4% in the 2-4 year old category while the Toyota Yaris continues to lead at 95.3% in the 5-7 year-old category. In the SUV category, the Suzuki Jimny retains top spot in both the 2-4 year and 5-7 year old category at 111.3% and 110.1% respectively.

The average time to sell a used EV has decreased to 61.6 days, down from 67.3 days in the previous month. However, this remains considerably higher than earlier in the year when the days to sell ranged between the low to mid-50s. This can be linked to the rising supply of used EVs, as observed across all states but the Northern Territory, where supply is significantly outpacing demand, presenting consumers with more options.

HIGHLIGHTS FROM THE AIR FOR NOVEMBER

• 197,652 vehicles were sold in November, a decline of 2.3% compared to the previous month.
• Northern Territory and Tasmania were the only two states experiencing a jump in sales by 30.5% and 2% respectively.
• 335,148 used cars were listed for sale in November, an increase of 5.4% from the previous month.
• All but ACT and Northern Territory experienced a decline in used EV sales.
• Average time to sell a used car has dropped to 47 days.
• Every vehicle segment across every age category experienced a drop in retained value for the month, with the exception of passenger vehicles in 3-4 year old category.
• The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux.
• In EVs, Tesla Model 3 overtook MG MG4 as the best-selling vehicle.

Dealers seeking more granular and local data can contact AutoGrab directly for a tailored solution.

If you are a Dealer of a contributing brand and would like access to the monthly report please email Policy and Communications Officer Urmika Deb on udeb@aada.asn.au.

On Tuesday the Government released the Core Skills Occupation List (CSOL), and importantly for the industry, automotive technician occupations of motor mechanic, diesel mechanic and automotive electrician were included in the list. This is a critical inclusion for the industry and acknowledges the pressing skills shortage across the automotive industry.

Skilled automotive technicians are in high demand, and their inclusions as part of the more than 450 eligible occupations, will apply under the Skills in Demand (subclass 482) visa and the Employer Nomination Scheme (subclass 186).

The AADA has continued to advocate that automotive occupations, which are in a critical shortage, must remain a training and employment priority, particularly in the midst of a changing automotive landscape with the increasing uptake of new vehicle technologies. This is essential to the continuing supply of trained automotive technicians and the operation of Dealership businesses to ensure consumers can access timely service and repairs on their vehicles.

Without a comprehensive plan to train new technicians and fill vacancies then vehicle servicing, personal transport and the wider automotive industry, would eventually grind to a halt.

The AADA will continue to engage with Jobs and Skills Australia to ensure the automotive industry has the workforce it needs for the future.

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Parliament has recently passed the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Amendment Bill.

In addition to amending the AML/CTF Act, the Bill repeals the Financial Transaction Reports Act 1988 (FTR Act).

The FTR Act mostly affects solicitors and motor vehicle dealers who act as insurers or insurance intermediaries. This means obligations these businesses have under the FTR Act will end when the FTR Act is repealed.

The repeal will take effect 28 days after the AML/CTF Amendment Bill gains Royal Assent.

What this means for Dealers

At the moment, Dealers have obligations to submit transaction reports under the FTR Act which may include significant cash transaction reports (SCTRs) and suspect transaction reports (SUSTRs).

After the FTR Act is repealed, Dealers will not need to submit reports about transactions that occur on or after the repeal date. Dealers will still need to report transactions that occur before the repeal.

AUSTRAC recommends Dealers start preparing for the change now and should start reviewing their processes and standard operating procedures, and prepare their staff for the change.

This change does not affect any obligations that Dealers have under other legislation, such as the AML/CTF Act, and the AADA advises Dealers to seek their own advice regarding ongoing reporting obligations.

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The Automotive Insight Report (AIR) for October saw another fall in used car sales, dropping 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 to the highest point since December last year to 49 days, up from 46.4 days last month.

Across fuel types, petrol and diesel remain the top choice among buyers accounting for over 95% of all sales. However, consumer preferences are gradually shifting toward more fuel-efficient alternatives, driven by an expanding range of options and better affordability. Sales of conventional petrol and diesel vehicles have declined by 4.5% and 2.3%, respectively. In contrast, PHEVs remain the most popular choice, with EVs following closely – both categories experiencing significant sales increases of 27.1% and 22.3%, respectively.

In the states, used car sales declined everywhere except Victoria, which recorded a modest growth of 0.2%.

For the first time, the October AIR report includes a snapshot of Australia’s used EV market. This included a breakdown of EV sales across the states, which showed increases in listings and sales in every state except the Northern Territory. The average time to sell used EVs has increased to 67.3 days, up from a low point of 55 days in August. Turning to top EV makes and models, 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.

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.

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 the 2-4 year category at 113.4% while regaining top position in 5-7 year old category at 114.0%. 

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.

Dealers seeking more granular and local data can contact AutoGrab directly for a tailored solution.

If you are a Dealer of a contributing brand and would like access to the monthly report please email Policy and Communications Officer Urmika Deb on udeb@aada.asn.au.

AADA encourages all women working in the automotive industry to participate in the Women in Automotive Global Industry Study.

The survey will assist in creating a more inclusive and equitable automotive sector with the insights being used to generate Deloitte’s Women in Automotive Report, launching in early 2025.

This initiative will provide data to better understand the unique challenges and opportunities facing women in the industry and try to help create a more inclusive environment for all.

The survey takes just 15 minutes to complete and will explore:

• Perceptions of the automotive industry’s future
• Barriers to retention and advancement for women
• Recommendations for creating a more inclusive and equitable workplace

VIEW SURVEY

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The Automotive Insight Report (AIR) for September shows a modest uptick in used car sales, while used car listings continued to increase continuing a trend of month-on-month increases in listings since May.

Listings of used cars increased by 5.2% to 314,672 while sales increased by 1% to 209,102.

The average days to sell has increased to 46.4, the highest it has been since January. This suggests that sellers are feeling the impact of a growing used vehicle supply, and with retained values dropping, it’s an ideal time for motivated buyers to secure a deal in this market.

Supply has increased in every state except the Northern Territory, however demand for used vehicles is a mixed bag, with some states recording substantial decreases (ACT down 11.2%) and others recording moderate increases (NSW up 3.5%).

Sales of used EVs have surged by 17.3% compared to last month, marking the highest monthly increase observed this year. However, EVs are still the most oversupplied fuel type, a trend further compounded by a 23% increase in EV listings in September.

Retained values continue to fall, with almost every vehicle segment across every age category experiencing a drop in value for the month. With more granular retained values data released this month, it is evident that Utes hold their value best at the two-year mark but are quickly surpassed by passenger vehicles in the 3-7 year age range.

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.

Dealers seeking more granular and local data can contact AutoGrab directly for a tailored solution.

If you are a Dealer of a contributing brand and would like access to the monthly report please email Policy and Communications Officer Urmika Deb on udeb@aada.asn.au.