The Automotive Insights Report data for June 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.
There were 192,266 used cars sold in June observing a marginal growth rate of 0.3% compared to May, while vehicles listed for sale also increased by 2.1% to 302,848.
This increase in supply has seen used vehicle values decrease across the board, with buyers benefiting from the more affordable price points. However, this has not translated to a surge in sales, which indicates the oversupply could be attributed to softer economic conditions and supported by the drop in new car sales in June.
Western Australia was the only state observing a notable drop of 13% in used car listings coupled with a 6.1% increase in sales, indicating a tighter supply situation in the West compared to the east coast.
While utes were the only segment to experience a decline in sales in June, they continue to remain a popular choice among buyers, making up three of the four top selling used vehicles.
Retained values continue to trend downwards, but the cars which are holding their value best continue to be small vehicles in the passenger segment. The Toyota Corolla outperformed others in the 2-4 year old (99.8%) and the Toyota Yaris in the 5-7 year old (99.0%) categories. 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 were:
- 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.
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.