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The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, have released the August 2025 Automotive Insights Report (AIR), offering a national snapshot of used car sales and listings across both dealer and private transactions.

This month’s results show the market cooling slightly after July, with total sales dipping lower, however dealer inventory remaining firm, and average days to sell continuing a steady decline. The EV segment remains volatile, with sales falling in August, coinciding with a sharp drop in listings.

Key insights from August include:

• Sales ease further: National used car sales fell to 203,480 in August, down 1.3 per cent month-on-month. VIC, TAS and ACT were the states holding strong recording slight increases in sales.
• Days to sell continue downward trend: Average days to sell improved again, falling to 43.9 days in August from 44.6 in July. This marks the fifth consecutive monthly decline since March’s peak of 51.3 days.
• Dealer inventory remains strong: Dealers accounted for 46.1 per cent of sales and 58.9 per cent of listings. Total active listings rose slightly to 339,932, the second-highest level of 2025.
• EVs remain a small, volatile market: EV sales fell 9.8 per cent in August to 2,750, representing just 1.35 per cent of all used car sales. Listings of used EVs dropped sharply, showing fluctuating consumer demand even as more models enter the market.

“Used car activity has softened in line with seasonal patterns, but what’s notable is the continued reduction in average days to sell,” said AADA CEO James Voortman.

“This reflects strong consumer demand when vehicles are priced competitively. At the same time, the EV market is proving unpredictable, sales remain a very small share overall and continue to move up and down month-to-month,” he said.

“For consumers, the combination of softening values and more choice in the market means better buying opportunities. Dealers, meanwhile, will be focused on managing turnover and stock levels in a more competitive environment,” said Mr Voortman.

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The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, have released the July 2025 Automotive Insights Report (AIR), offering comprehensive national reporting of used car sales covering both dealer and private transactions. This national, all-channel view helps industry and policy-makers understand real demand, track emerging trends, and make better-informed decisions.

The results from the July AIR shows a slight slowdown in used vehicle sales activity following June’s end-of-financial-year peak, alongside continued softening in retained values across most segments.

Key insights from July include:

• Sales ease after EOFY surge: National used car sales fell to 206,216 in July, down 2.8 per cent month-on-month. WA, TAS, ACT and NT recorded modest increases, while all other states saw declines.
• Dealer inventory remains strong: Dealers accounted for 47.5 per cent of sales and 55.5 per cent of listings. Total active listings rose 2.9 per cent to 339,742 nationally, the highest level so far in 2025.
• Hybrid and EV sales slow: Hybrid sales fell 8.5 per cent month-on-month, while EVs dropped 20.3 per cent. However, hybrid listings increased 13.6 per cent and EV listings rose 4.9 per cent, indicating ongoing supply growth in these segments.
• Days to sell dropped: Average days to sell across all used vehicles fell to 44.6 days in July, down from 47.0 in June, indicating a quicker turnover for vehicles that matched buyer demand.

“July often sees a cooling in sales activity after EOFY, so these results are in line with seasonal patterns,” said AADA CEO James Voortman.

“Stock levels are building, which is positive for consumer choice, but the ongoing softening in retained values is something dealers will be factoring into pricing and margins,” he said.

“For consumers, the easing in retained values means there’s more opportunity to secure a better deal on a used vehicle than we’ve seen in recent years. With more stock on the market and prices softening across most segments, buyers have greater bargaining power and more choice to find the right car at the right price.” said Mr Voortman.

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The Australian Automotive Dealer Association (AADA) and AutoGrab are pleased to release the Mid-2025 Automotive Insights Report (AIR), providing insightful data about the dynamic Australian used car market in the first half of the year.

Used car inventory is surging, with 1,589,491 vehicles listed for sale in the first six months of 2025 which represents an over 30 per cent increase compared to the same period in 2024.

This uplift in supply is matched by stable demand, with 1,133,990 used cars sold so far this year, a slight increase on 2024. Notably, the market is experiencing a continued shift back toward dealership sales, with dealer transactions now representing 46.7 per cent of total sales, up from 36.5 per cent last year.

“After a year of constrained supply and strong retained values, we’re seeing greater balance return to the used car market,” said AADA CEO James Voortman.

“The mix of rising stock levels, stable demand and more stable pricing is creating better conditions for consumers and dealers alike,” said Mr Voortman.

Low emission vehicle adoption continues to gain momentum. Battery electric vehicle (BEV) sales nearly doubled year-on-year, rising 92 per cent, while plug-in hybrid sales grew by 96 per cent. Hybrids also performed strongly, up 42 per cent on the same period last year.

“The growing inventory surplus is likely to place downward pressure on prices and could result in extended selling times during the second half of 2025. The surge in supply is primarily driven by passenger vehicles and SUVs. While SUVs continue to underpin sales growth and utes are stable, demand for passenger vehicles has shown a noticeable decline,” said AutoGrab CCO Saxon Odgers.

“The other standout trend in 2025 is the acceleration of electrified vehicle sales in the used market. While we are coming off a low base, used EV stock is growing, and are becoming far more visible and accessible to buyers,” said Mr Odgers.

Among brands, Toyota remains the market leader for used car sales, though its market share slipped slightly to 15.6 per cent as other brands gained ground. A number of manufacturers have seen significant growth in their sales figures, with GWM, Kia, and MG the headliners.

The Ford Ranger maintained its position as the top-selling used model, with 43,030 units sold, followed by the Toyota Hilux and Toyota Corolla.

Other highlights from the 2025 mid-year AIR include:

• BEVs now account for 1.1 per cent of all used car sales, up from 0.8 per cent last year.
• Private sales dropped significantly, now making up 53.3 per cent of all transactions (down from 63.5 per cent).
• Retained values are lower in 2025 compared to last year, but the rate of decline month-to-month is more gradual, indicating a more stable market.
• The average number of days to sell a used vehicle remained steady for dealers, though private sellers are taking longer to sell compared to the same period in 2024.

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The Australian Automotive Dealer Association (AADA) has released new research today which details Australia’s past, current and future automotive trading partners, with a particular focus on understanding how the New Vehicle Efficiency Standard (NVES) impacts automotive dealers.

The report reveals that China is gaining momentum in supplying vehicles to the Australian market and are on track to become the dominant source of automotive imports by 2035 with 43 per cent of all new vehicles sold by 2035 coming from China.

The research to be released at the 2025 AADA Convention & Expo to over 1,000 new car dealers and industry stakeholders, details how the Australian automotive market has always been in a constant state of flux but this rapid growth of imports from China will fundamentally change the Australian automotive landscape.

Speaking to the research at the Convention, James Voortman, CEO of AADA, notes that:

“Australia is at an inflection point where we are going to see exponential growth of sales and new brands from China which we are already starting to see now. This growth comes on top of the change to electric vehicle drive trains.”

“This rate of growth can have unintended implications to consumer protections such as the supply of parts, wait times to service vehicles, and the long-term ability of manufacturers to guarantee their consumer warranties.”

“Australian consumers have long expected a level of service from AADA members upon purchasing a new vehicle and we want to continue to meet that expectation. To do that, we will be talking to Government about what consumer protections are adequate and appropriate to support Australian dealers and consumers in what is, on average, the second largest asset Australian’s buy in their lifetime.”

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The Australian Automotive Dealer Association (AADA) and Mercedes-Benz dealers across the country are bitterly disappointed by today’s decision by the Federal Court to dismiss their appeal and to find in favour of Mercedes-Benz AG.

Commenting, AADA CEO James Voortman, said:

“Australian dealers have been fighting to stop Mercedes-Benz using their power over franchised dealers to force them into one-sided business relationships. Today’s decision is a significant blow to that fight which will have detrimental effects on Australia’s franchising sector.”

“In handing down today’s decision, there is now a clear need to protect Australian franchisees against unfair treatment from franchisors to arbitrarily change business models with no compensation.”

“The presiding Judge in the original court decision clearly articulated the need for further amendments to the Franchising Code to protect the investments dealers make in their businesses.”

“The Australian automotive industry is currently going through a major transition with the move to electric vehicles. This transition will require massive amounts of dealer investment in infrastructure and servicing to ensure consumers have the confidence to purchase an electric vehicle.”

“Today’s decision confirms that current laws in Australia do not adequately protect new car dealers against unfair conduct and particularly are not being supported against unfair decisions being made in head office overseas. It is imperative that the Federal Government moves at speed to implement the commitments it made in the election to protect franchisees against unfair contract terms and unfair trading practices.”

This decision comes on the back of Holden dealers losing their legal action against General Motors (GM) this year where the Judge found that there was no obligation by GM to supply vehicles to Australian dealers under their franchising agreement.

The AADA will advocate directly to the Federal Government to move with haste to ensure that all automotive franchisees are appropriately protected, so that the blueprint created by this court decision is not used by others.

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About the Court Action

1. Motor vehicle dealers operate over 3,700 dealership sites in Australia, and employ more than 68,000 workers directly and indirectly in sales of new and used cars, and in provision of service and parts.
2. They are a small business success story in every Australian city, regional centre and town. Almost all dealerships started from the investment by a single individual or family, and over time some of the dealers have become large public and private company operating multiple brands and sites.
3. The dealership model is under threat from the risk of unrestrained profit grabs by the large, overseas car manufacturers (OEMs) at the expense of Australian dealers, workers and consumers. This risk arises because there are loopholes in the Australian Franchising Code, that were exposed in a recent Federal Court judgment involving the Mercedes-Benz dealers which the dealers lost.[i]
4. On 1 January 2022, Australia was one of the first countries to implement a new ‘agency’ model, for Mercedes-Benz globally, under its ‘Retail of the Future’ strategy.[ii] The dealers consistently opposed that model, having voted in December 2019 against the new model 51-4.[iii]
5. Under the ‘agency’ model, Mercedes-Benz rather than the dealers is the legal seller of all new Mercedes-Benz cars in Australia, thus transferring all retail profits from the dealers to the OEM. The dealers’ new role is that of commission agent, with the original court decision Justice Beach finding that Mercedes-Benz set the commission rates to enable dealers to break even on their new car sales, by covering the dealers’ marginal costs of operation only.[iv]
6. Justice Beach in the original decision also found at paragraph [390] that the modelling done for Australia, by the Mercedes-Benz Finance staff in Stuttgart, was seen ‘as a source of experimentation to see how low the [Dealers’ Return on Sales] could be pushed by lowering agency commissions. Australia and possibly one other country seem to have been the subject of the most cutting so to speak.’
7. However, rather than buying out the dealers’ investments to run a centrally controlled sales system, Justice Beach concluded that Mercedes-Benz backed the dealers into a corner.^[v] They did this by terminating their existing dealership agreements, by non-renewal notices, and then offering the dealers a choice of either closing their dealerships or signing up to the new ‘agency’ agreements prepared by Mercedes-Benz.^[vi]
8. Justice Beach also found that there was no meaningful negotiation of the financial terms by Mercedes-Benz, which only made concessions on ‘rats and mice issues’.^[vii] Mercedes-Benz rejected the dealers’ requests for compensation, and provided a two-year ‘safety net’ which Justice Beach found was not compensation, but was designed to address transition issues.^[viii] After considering the expert evidence, Justice Beach concluded that the dealers were materially worse off under new ‘agency’ agreements, and that Mercedes-Benz was substantially better off at the expense of the dealers.^[ix]
9. Ultimately this loss of dealer profit will translate into less future investment by the dealers, a diminished network of dealers, job losses and higher vehicle prices for consumers as competition is removed from the market. As the Mercedes-Benz case shows, Australia’s loss is Germany’s gain.[x] Applied across the whole of the industry, the AADA is concerned that restructuring by stealth will leave the Australian marketplace in a very weak and uncompetitive position in future years to the detriment of businesses, workers, and consumers.

 

[i] AHG WA (2015) v Mercedes-Benz Australia/Pacific Pty Ltd [2023] FCA 1022, Beach J, 30 August 2023 (“Judgment”), https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2023/2023fca1022

[ii] Judgment, paragraphs [1768], [1771], [2092]

[iii] Judgement, paragraphs [2], [1625].

[iv] Judgment, paragraph [2658].

[v] Judgment paragraph [2184].

[vi] Judgment, paragraph [2177].

[vii] Judgment, paragraph [245].

[viii] Judgment, paragraph [1797]. The transition issue was the possibility of an X% decline in Mercedes-Benz’ competitive market share as a direct result of the transition to an agency model – see Judgment, paragraph [907].

[ix] Judgment, paragraphs [2377],  [3577], [3593].

[x] Judgment, paragraph [2267] shows how Mercedes-Benz could generate extra profits by raising prices from the ‘former transaction price’ to the ‘optimised fix price’, including by eliminating intra-brand competition.

The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, have released the June 2025 Automotive Insights Report, which saw an end-of-financial-year (EOFY) lift in used vehicle sales activity even as retained values begin to soften across most segments.

Key insights from June include:

• EOFY drives strong sales growth: National used car sales surged to 212,136, up 10.1 per cent month-on-month. Significant increases were recorded in NSW (12.5 per cent), QLD (11.7 per cent), and VIC (9.1 per cent).
• Dealer activity remains strong: Dealers accounted for 49 per cent of sales and 53.6 per cent of listings. The dealer share of inventory continues to lead, reflecting strategic stock positioning and ongoing consumer confidence in dealer-backed purchases.
• Hybrid and EV momentum continues: Hybrid sales climbed 21.7 per cent month-on-month, PHEVs increased 29.3 per cent, and EVs rose 7.6 per cent, despite a 6 per cent drop in EV listings. The shift reflects increasing consumer demand for fuel-efficient vehicles.
• Days to sell remains stable: Average days to sell across all used vehicles held steady at 47.0 days, consistent with May, suggesting sustained consumer engagement as stock levels increased slightly by 1.2 per cent to 330,278 listings nationally.

“EOFY always drives sales activity, but it also tends to put downward pressure on retained values. We saw the same pattern in June last year in that buyers are motivated, but so are sellers keen to close deals before the books close.”” said AADA CEO James Voortman.

“Hybrid and EV sales are continuing to build momentum, showing strong consumer interest in fuel-efficient vehicle despite broader market fluctuations,” he said.

“The pressure on retained values is something dealers will need to factor in when setting margins and managing stock. It’s encouraging to see hybrid and EV sales continue to build momentum, but pricing volatility remains a key watch-point heading into the second half of the year,” Saxon Odgers, Chief Commercial Officer at AutoGrab said.

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The Australian Automotive Dealer Association (AADA) is disturbed by the ACT Governments budget decision to tax ACT motorists an additional $100 million over the forward estimates and is calling for it to be immediately removed.

This new 8 per cent tax on all new vehicles sold over $80,000 will only hurt new car buyers across the ACT during a time in which so many Canberrans are being challenged by cost-of-living challenges.

“There are over 60 new car dealerships across the ACT, who employ over 900 people including 90 apprentices, who are a significant contributor to the ACT economy,” said AADA CEO James Voortman.

“There are serious questions that need to be asked of the ACT Government as to why they are targeting new car dealers who are a significant contributor to the ACT economy,” he said.

“This new tax will only encourage consumers to purchase vehicles across the border and cement the ACT as one of the worst places in Australia to do business,” said Mr Voortman.

This new tax will directly impact middle income families, for example, a Toyota Kluger will now be $1,300 dearer, whilst Ford Rangers can now be $1,400 dearer across the Territory thus making it only more expensive for ACT residents compared to their NSW counterparts.

This is also a massive blow to the Federal Government’s ability to conclude a free trade agreement with the EU, with the ACT showing that states and territories will simply implement ridiculous taxes of their own.

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The May 2025 edition of the Automotive Insights Report (AIR), produced by the AADA in collaboration with AutoGrab, shows a rebound in used car sales, increasing by 5.4 per cent to 192,692 units, while used car listings also increased by a similar margin, indicating a stable balance between supply and demand.

“The observed increase in listings may be partly attributed to end-of-year discounts being offered in the new car market, prompting more people to upgrade their vehicles and boosting the supply of used cars,” said AADA CEO James Voortman.

“Across the vehicle segments, SUV remains the most popular vehicle of choice, experiencing the highest jump in sales, up 7.9 per cent to 83,442 units compared to April 2025,” he said.

“Average days to sell dropped to 47.6 days, the lowest this year, suggesting improved stock turnover,” said Mr Voortman.

“Used car sales rose across all states but the Northern Territory, which experienced a notable drop in sales, down 12.4 per cent to 648 units,” he said.

“Used EVs, in particular, experienced significant growth, increasing by 37.5 per cent in May 2025 compared to 8.4 per cent in April this year, suggesting a strong shift in consumer preferences toward cleaner vehicles,” said Mr Voortman.

Small vehicles in the passenger segment continue to lead in value retention, with the Audi RS3 replacing the Ford Mustang, at 105.8 per cent in the 2-4 year old age category. Japanese car maker Toyota maintains top position in the 5-7 year age bracket, with the Toyota Vitz at 100.3 per cent. The Suzuki Jimny continues to remain unbeatable in the 2-4 year old SUV category at 111.8 per cent.

Highlights from the AIR for May 2025:

• 192,692 used cars sold nationally – a 5.4 per cent increase from April.
• Total listings were up 5.2 per cent, with the Northern Territory being the only outlier.
• EV sales experienced significant growth, rising by 37.5 per cent to 3,552 units.
• Average days to sell dropped to the lowest point this year – 47.6 days.
• The Suzuki Jimny maintains top retained value position in the 2-4 year old SUV category at 111.8 per cent.
• Ford Ranger and Toyota Hilux continue to top the dealer sales list.
• In EVs, Tesla Model 3 and Tesla Model Y were the top picks once again.

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The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, have released the April 2025 Automotive Insights Report, highlighting a seasonal softening in the used car market driven by April’s run of public holidays – and a marked rise in dealer market share compared to the same time last year.

Key insights from April include:

• Used Vehicle Listings Decline: National listings dipped slightly to 310,054, down 0.6 per cent month-on-month.
• Sales Volume Drops: Total transactions fell to 182,827, an 8.8 per cent decline compared to March, with notable drops in the ACT (-18.3 per cent), NSW (-12.7 per cent) and VIC (-11.7 per cent).
• Dealer Share Surges Year-on-Year: Dealers accounted for 52.5 per cent of listings and 45.4 per cent of all used vehicle sales in April, a substantial increase of 12.9 and 10.5 per cent respectively compared to April 2024. The figures underscore dealers’ growing prominence in the online marketplace, driven by better digital tools, structured inventory management, and consumer trust in dealer-backed transactions.
• Days to Sell Improved Marginally: Vehicles took an average of 49.7 days to sell, a slight improvement from 51.3 days the previous month, indicating a modest uptick in turnover efficiency.

“April is always impacted by public holidays, but what stands out is the year-on-year growth in dealer engagement,” said AADA CEO James Voortman.

“Dealers are driving a notable uplift in both stock and sales, clear evidence they’re actively stepping up to meet market demand,” he said.

“Electric vehicles remained a standout segment, defying broader trends with a 7.1 per cent rise in listings and an 8.4 per cent increase in sales compared to March. The EV used vehicle market is showing encouraging signs which, as a result should support a stronger residual valuation price supporting dealerships confidence in retailing and lenders having a better sense of risk,” said Saxon Odgers, Chief Commercial Officer, AutoGrab.

The April 2025 Automotive Insights Report offers an in-depth view of market trends, sales activity, and vehicle turnover across the country, providing essential intelligence for dealers, consumers, and policymakers.

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The Motor Trade Association of Western Australia (MTA WA), the Victorian Automotive Chamber of Commerce (VACC), and the Tasmanian Automotive Chamber of Commerce (TACC) have agreed to sign a Memorandum of Understanding (MoU) with the Australian Automotive Dealer Association (AADA), further strengthening cooperation between state, territory, and national organisations representing automotive franchised dealers.

This new agreement will build on the model established earlier this year between the Motor Trades Association of Queensland (MTAQ) and AADA, committing the organisations to closer collaboration and resource sharing for the benefit of their dealer members.

The MoU acknowledges MTAQ, MTA WA, VACC, and TACC as the peak bodies representing new car and truck dealers in their respective states and the AADA as the national peak industry body when dealing with issues of national significance. Together, they commit to coordinating policy positions, submissions, media communications, and committee representation to better serve dealers and ensure they are represented by one voice at both the state and national levels with regards to franchised new car and truck dealer issues.

“This is a major step forward for dealers in the signatory states who now will benefit from one consistent voice at both the state and national level. I am looking forward to working with my colleagues in Victoria, Western Australia, Queensland and Tasmania to ensure franchised new car and truck dealers have the best possible representation,” said AADA CEO James Voortman.

“This agreement represents a pivotal moment for our industry. By formalising collaboration between state and national bodies, we are strengthening our ability to advocate effectively and consistently on behalf of dealers. At a time when the automotive sector is facing rapid change, unity and coordination are more important than ever. MTA Queensland is proud to have helped pioneer this approach and fully supports this expanded national alignment,” said MTAQ CEO Rod Camm.

“Politicians respond best when they have one clear and strong voice to listen to. While the MTA WA has had a long working relationship with AADA, this MoU provides a great outcome for franchise dealers across Australia. Politicians will now receive one clear consistent message which should lead to better outcomes for our members,” said MTA WA Group CEO Stephen Moir.

“This agreement strengthens our ability to advocate effectively for new car and truck dealers across Victoria and Tasmania. By working in closer coordination with AADA, we ensure our members benefit from strong representation at both state and national levels. This unified approach will deliver better outcomes for automotive retailers while maintaining our focus on the specific needs of our Victorian and Tasmanian members,” said VACC CEO Peter Jones.

This agreement marks a major step towards achieving a unified and coordinated national voice for franchised dealers across Australia.

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