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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.

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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.

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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.

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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.

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The Australian Automotive Dealer Association and AutoGrab are pleased to release the first Mid 2024 – Automotive Insights Report (AIR).

The data shows that 1,211,484 used cars were listed for sale in the first six months of the year, representing a 25% increase compared to the same time last year, driven by record-high new car sales.

This growing inventory has been accompanied by growing sales, with 1,112,580 used cars sold, an increase of 16% on the same period last year.

“The surge in listings has seen used car values decrease across every vehicle segment. National weighted average retained values for utes are down 11.8%, SUVs down 8.2% and passenger vehicles experiencing the smallest decline, down 5.9%,” said AADA CEO Mr James Voortman.

“There is a clear trend of improving used car supply resulting in lower prices which in turn has led to higher sales,” he said.

“This data also demonstrates growth in used cars being listed for sale privately, with the proportion of dealer listings down 7.5%,” said AutoGrab Chief Commercial Officer Saxon Odgers.

“The Private market share has risen to 67.5% (817,751 listings) compared with 59.9% (576,531 listings) in the prior corresponding year and Private sellers take 13 fewer days to sell compared to Dealers,” said Mr Odgers.

“The data also shows that Dealer sales remain steady with the average time taken for a Dealer to sell a vehicle at the 50 day mark, which is consistent with the same period last year. However, Dealer listing price drop statistics are showing an increase on last year, suggesting that the growing supply in the market is being felt by sellers across the board,” he said.

“Sales of used hybrids and EVs were strong for the first half of 2024 with both categories growing by around 80%. While both categories experienced a reduction in value, one-year-old hybrids still command a 3.5% higher sale price compared to their original retail price, while EVs have depreciated by -17% in value,” said Mr Voortman.

Toyota is the used car market leader capturing almost 17 % market share. The Ford Ranger continues to dominate used car sales with 38,804 units sold YTD, followed closely behind by the Toyota Hilux with 34,736 units sold YTD.

The Mid 2024 Automotive Insights Report shows that:

• Across Australia 1,211,484 vehicles were listed for sale YTD and in that period 1,112,580 were sold.
• Increasing demand for used cars, with sales experiencing a 16% per cent growth compared to that same period last year.
• Sales are up in almost every fuel type, with PHEVs experiencing the largest growth in sales at 112.9%.
• Toyota was the top selling used car brand with 16.8% market share, followed by Mazda (8.3%) and Ford (7.9%).
• The Ford Ranger was the top selling vehicle with 38,804 units, followed closely behind by the Toyota Hilux with 34,736 units.

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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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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.

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The peak body representing franchised new car Dealers has today noted the passage of the New Vehicle Efficiency Standard.

“New car Dealers have supported the introduction of a Standard for a long time, and while we consider this to be an ambitious standard which will be very challenging to achieve, Dealers are ready to play their part in significantly lowering vehicle emissions,” said AADA CEO Mr James Voortman.

“This policy ushers in a major transition in Australia’s automotive retail sector and new car Dealers as a customer facing industry will be central to supporting consumers as they transition to low and zero emissions vehicles. We are confident that Australia’s nearly 3,200 new car dealerships and their 61,000 employees have a bright future,” he said.

While this legislation is a significant reform, there is a lot more complementary work needed to ensure lower emissions vehicles are affordable and that Australians buying these vehicles have access to charging infrastructure.

“One key element being the $60 million dealership charging fund to assist Dealers in installing charging infrastructure to support the transition to selling and servicing electric vehicles,” said Mr Voortman.

This policy also underscores the need to investigate issues around automotive franchising reform as compliance with the NVES and the arrival of many new manufacturers will put Australian Dealers at greater risk.

“Now that the legislation has passed, we will focus on working with the Government to ensure implementation is as smooth as possible. In particular, we will push for the compliance of this scheme to move from the point of import to the point of sale over time,” he said.

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The peak body representing franchised new car Dealers has welcomed the release of the 2024-25 Federal Budget tonight.

“This Budget includes some welcome measures for our industry, including $60 million for the Dealer charging fund. The fund will help new car Dealers with installing EV charging infrastructure in their businesses in support of the transition to selling and servicing electric vehicles,” said AADA CEO Mr James Voortman.

“We also welcome the announcement of $3 million to implement the Government’s response to the Review of the Franchising Code of Conduct, which will be used to investigate the feasibility of a licensing model and remake and update the Code prior to its expiration in April 2025,” he said.

“These are important investments in supporting Australian new car Dealers as employers of over 61,000 people, particularly as we head into a period of unprecedented structural change in the industry,” said Mr Voortman.

“While the AADA would have liked to see a resurrection of the previous scheme, we welcome the 12-month extension of the current small business instant asset write-off scheme,” he said.

In contrast, this budget highlights the continuing impost on Australian drivers through automotive taxes such as the Luxury Car Tax and Passenger Vehicle Tariff, with the Government estimated to collect almost $1.7 billion this financial year from these taxes alone.

“We consider these to be outdated taxes, which are a relic from an era when Australia manufactured vehicles here. Particularly the Luxury Car Tax which often applies to more efficient vehicles and applies to optional features which discourage consumer uptake of safety features,” said Mr Voortman.

These figures highlight recent calls made by the AADA, that Australia needs a comprehensive review of automotive taxes, particularly as we seek to accelerate the uptake of EVs and low emissions vehicles.

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The Automotive Insights Report data for the month of April shows the market for used cars in Australia is stabilising with a steady decline in supply and demand holding firm.

“There were 183,575 used cars sold in April, representing a slight 0.3% decrease on the previous month while vehicles listed for sale reduced by 3.8%, highlighting a trend of declining listings since the end of 2023. It will be interesting to see if this trend persists given the record number of new cars being sold,” said AADA CEO James Voortman.

“The used market for hybrids and electric vehicles is booming and for the third consecutive month sales of hybrids (5.7% growth) EVs (9.5% growth) and PHEVs (2.7% growth) all outperformed the overall market.”

“There is still a significant oversupply of EVs relative to other fuel types, but the mismatch between demand and supply seems to be reducing with EV sales growing at the same time as EV listings decline,” he said.

“The average time to sell a used car has remained around the 44-day mark for the past three months, significantly down from the 12-month high of 52 days in November, indicating the market is stabilising.”

“Retained values continue to decline gradually across all segments with passenger vehicles holding up slightly better than SUVs and LCVs. Given the fact that the gap between used car supply and demand is reducing, it will be interesting to see what the effect will be on retained values and length of time to sell,” he said.

“The Ford Ranger is Australia’s undisputed favourite used car. Having topped the used car sales charts for the first three months of the year, the Ranger built on that dominance in April increasing its lead on its rivals with sales growing by an impressive 7.4%,” Mr Voortman said.

“The Hilux came in second on the sales charts, one of four Toyota models in the top ten, cementing the Japanese manufacturer’s status as the Australian market leader in both new and used car sales,” he said.

“While sales volumes underlines Australia’s love for utes, retained values show that the most in demand cars in the 2-4 year category were sports cars and smaller passenger cars while in the 4-7 year category small and large SUVs rule the roost,” said Mr Voortman.

Highlights from the AIR for April were:

• 276,719 vehicles are listed for sale, a decrease of 3.8% compared to the previous month.
• Listings were down in every state and territory, except for the ACT and South Australia which recorded minor increases.
• 183,575 used cars were sold in April, a minor decrease of 0.3% from the previous month.
• The NT and South Australia both outperformed in sales with increases over 6%. New South Wales saw the largest decline with a 4.3% reduction in sales.
• Sales of EVs grew for the third month in a row, this time by 9.5% while PHEVs grew by 2.7%.
• Hybrid sales also saw decent growth with an increase of 5.7% compared to March.
• Average time to sell a used car is 44.3 days, almost exactly the same as last month.
• Retained values continue their gradual decline with passenger vehicles holding their value best for vehicles in the 2-4 year age bracket (84.9%) while utes perform best for the older 5-7 year category (70.6%).
• The Ford Ranger remains Australia’s best-selling used car, the top 6 best selling cars remained the same in April as they were in March.

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