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The Australian Automotive Dealer Association (AADA) has used its 2026–27 Pre-Budget Submission to call for a series of targeted, low-cost reforms to improve efficiency and fairness, and support the transition to electric vehicles across Australia’s automotive retail sector in challenging economic times.

With more than 3,900 new car dealerships nationwide, the AADA says the upcoming Federal Budget presents a key opportunity to address regulatory bottlenecks and ensure policy settings reflect the realities of the retail automotive industry.

The AADA is calling on the Albanese Government to expedite commitments to reform franchising protections for Australia’s new car dealers. Australia’s franchising framework, with longstanding power imbalances between dealers and multinational manufacturers, is currently not appropriate to respond to the current pace of the transition to electric vehicles. With the introduction of many new brands in the Australian market, this poses many risks to businesses, consumers and the transition to low emission vehicles without proper protections in an open market such as Australia.

“Franchised dealers operate in a system where the balance of power is heavily weighted towards global manufacturers,” an AADA spokesperson said.

“Strengthening protections against unfair trading practices and extending unfair contract terms laws to all franchisees are critical steps to ensuring a fair and sustainable operating environment.”
The submission is also calling for an expansion of the Government’s Dealership and Repairer Initiative for Vehicle Electrification Nationally (DRIVEN) program to better support dealers on the frontline of Australia’s EV transition.

“Expanding this program presents an opportunity to better meet the demands of the surge in low emission vehicle purchases in recent months,” the spokesperson said.

“Dealers are the primary point of contact for consumers, and targeted investment in infrastructure, training and education at the dealership level will be critical to sustaining momentum in EV uptake.”

Another key priority is improving the operation of the Personal Property Securities Register (PPSR), where delays in removing finance encumbrances are creating unnecessary costs and holding up vehicle sales.

“Delays in clearing PPSR registrations are a daily frustration for dealers and consumers alike.”

“Our data shows 71 per cent of dealers using the system experience delays beyond the mandated five-day timeframe, which creates avoidable inefficiencies and slows down transactions.”

“This is a simple fix – ensuring timely removal of registrations and reviewing repeat search fees would deliver immediate productivity gains across the industry.”

“This is about getting the policy settings right and removing friction where it exists. The AADA believes the budget should be backing the businesses that are delivering for Australian consumers every day.”

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Key Headlines

1. Australia’s used electric vehicle market experienced a sharp and sudden surge in activity during March 2026, coinciding directly with the escalation of the Middle East conflict and the resulting spike in domestic fuel prices.
2. Used EV sales more than doubled between February and March 2026, rising from 3,176 to 7,557 units nationally. At the same time, available stock dropped by 38%, leaving the market with just 28.6 days of supply at the current rate of sales.
3. Chinese origin and value positioned EVs dominate consumer demand.
4. Used EVs prices have increased since January but the recovery is uneven.

Market Snapshot – What the Numbers Say

Australia’s used electric vehicle (EV) market experienced a sharp surge in March, with activity accelerating rapidly as fuel prices climbed following escalating tensions in the Middle East.

Used EV sales more than doubled month-on-month, jumping from 3,176 units in February to 7,557 in March, in one of the most significant shifts seen in the segment to date.

At the same time, supply tightened dramatically. Available stock fell by 38%, leaving the market with just 28.6 days of supply – well below the 60–90-day range typically considered balanced – and signaling a clear shift toward a seller’s market.

The surge has been led by value-oriented and Chinese-origin EV models, alongside strong dealer representation across the top-selling vehicles, reinforcing the role of competitively priced offerings in driving adoption.

While prices had softened through late 2025, residual values have begun to stabilise and recover since January, suggesting the recent lift in demand is starting to flow through to pricing—although conditions remain uneven across different model years.

The sustainability of this surge will depend on how long fuel prices remain elevated, but the March data points to a clear shift in buyer behaviour toward lower running-cost vehicles.

General Market Statistics

The broader used vehicle market also showed solid figures in March, with 327,762 vehicles listed for sale, marking a 1.9% increase month-on-month.

A total of 222,810 vehicles were sold, representing a 4.2% rise compared to February, signalling continued resilience in consumer demand.

Dealer activity remained a key component of the market, accounting for 45.22% of all sales, reinforcing the important role dealers play in connecting buyers with vehicles. Market efficiency improved slightly over the month, with the average days to sell falling to 45.6 days, down from 46.6 in February, indicating a modest acceleration in transaction times.

“Rising fuel prices are clearly influencing consumer behaviour, with more Australians turning to used EVs as a practical and cost-effective alternative,” said AADA CEO James Voortman.

“At the same time, the broader used vehicle market remains resilient, with steady sales growth and improving turnaround times indicating healthy underlying demand.”

“Dealers have consistently demonstrated their ability to adapt to changing market conditions, and the growing presence of EVs being offered by dealers in the used market is another example of that evolution in action,” said Mr Voortman.

“The Australian automotive market can change almost overnight. As we’ve seen recently, macro events whether an interest rate decision, a tariff announcement, an oil crisis, or a shift in consumer confidence – can ripple through the used car and demonstrator market within weeks, reshaping which segments are moving, which are stalling, and where the value sits, “said AutoGrab Chief Commercial Officer Saxon Odgers.

“What we saw in March wasn’t a gradual shift. Used EV sales more than doubled in the space of a month while available stock fell by 38%, compressing days of supply to under 29 days. For dealers who are well-positioned with the right stock, the opportunity is significant.”

“Residual values on used EVs have been stabilising since January, and the March demand surge is now adding upward pressure. Whether this marks a lasting inflection point will depend on how long fuel prices stay elevated, but the data is clear: cost of ownership is now front of mind for buyers, and that’s reshaping how they think about their next vehicle.”

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The Australian Automotive Dealer Association (AADA) says March 2026 new vehicle sales data highlights a clear shift in consumer preferences, with rising fuel prices accelerating demand for electric vehicles.

New vehicle sales totalled 108,703 vehicles in March, representing a decrease of 2.61 per cent compared to February 2026 and 1.81 per cent decrease YTD compared to the same period in 2025.

Battery Electric Vehicle sales reached 15,839 units in March, up 42 per cent month-on-month and 92 per cent year-on-year, accounting for 12 per cent of total new vehicle sales so far this year.

Plug-in Hybrid Electric Vehicle sales reached 8,215 units in March, up 40 per cent month-on-month and 40 per cent year-on-year, accounting for 7 per cent of total new vehicle sales for 2026.

Additionally, China’s market share continues to increase, and Australia is now a leading market for the Chinese automotive industry.

“The AADA is seeing a clear shift in consumer preferences this month, with many buyers who may have previously been on the fence now choosing to buy an electric vehicle,” said James Voortman, CEO of the AADA.

“Rising fuel prices have brought forward decisions for a lot of consumers, particularly those weighing up the long-term running costs of their next vehicle.”

“The key question now is whether this is the beginning of a more sustained shift in the market, something we will only know in the coming months.”

“What this month’s sales figures prove is that it will be Australian consumers that dictate the pace of the transition.”

“It is now more important than ever to purchase a vehicle from an authorised new car dealer given the large number of automotive brands selling new cars in Australia, and the wide range of vehicles available for sale with state-of-the-art technology.”

“Dealers have been embedded in their local communities for decades, helping Australians find the vehicle that best suits their individual needs. They are also there to ensure these cars are safely maintained and that warranty, consumer law and recall obligations are upheld.”

*The AADA has reviewed year-to-date VFACTS and EVC data, ranking vehicles by volume, and continues to analyse new vehicle sales by state, fuel type and market segments to monitor trends shaping the Australian market.

VIEW MARCH 2026 FIGURES

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The Australian Automotive Dealer Association (AADA) has welcomed elements of the newly announced Free Trade Agreement (FTA) between Australia and the European Union (EU), but says the deal stops short of delivering meaningful reform to the Luxury Car Tax (LCT).

The agreement includes changes impacting Australia’s franchised new car dealers, including the removal of the 5 per cent Passenger Vehicle Tariff (PVT) on vehicles imported from the EU and the introduction of a new LCT category for zero emission vehicles with a threshold of $120,000.

“The removal of the 5 per cent tariff on EU-sourced vehicles will improve affordability and increase competition in the Australian market,” said AADA CEO James Voortman.

However, Mr Voortman said the Government had missed an opportunity to undertake broader and more impactful reform of the LCT.

“While the introduction of a higher LCT threshold for electric vehicles provides some benefit, it is a narrow change that will only affect less than 1 per cent of vehicles sold and does not address the fundamental flaws of the tax,” he said.

“The LCT is a legacy policy from a time when Australia had a domestic manufacturing industry. Today, it acts as a distortionary tax that no longer reflects the realities of the modern automotive market.”

“This was a clear opportunity for the Government to implement meaningful reform by either abolishing the tax entirely or ensuring it only applies to genuinely luxury vehicles,” Mr Voortman said.

“Instead, we’ve seen a partial measure that leaves many everyday vehicles, including those commonly used by small businesses and regular Australians, still captured by the tax.”

The AADA reaffirmed its commitment to continued engagement with Government on comprehensive LCT reform.

“We will continue to advocate for a fairer system, one that targets true luxury vehicles, removes the taxes on genuine parts, and provides clarity and certainty for dealers and consumers,” Mr Voortman said.

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The Australian Automotive Dealer Association (AADA) is urging the Albanese Government to honour its election promise by legislating protections for franchised new car dealers and banning unfair trading practices and contract terms in the automotive industry.

James Voortman, CEO of the AADA, said that it has been exactly one year to the day that the Government publicly committed to banning the use of unfair trading practices and unfair contract terms to protect Australian franchised new car dealers after years of exploitation of the power imbalance between multinational auto manufacturers and Australian new car dealers.

“As international competition in Australia’s automotive market intensifies, franchised new car dealers are increasingly facing pressure from multinational manufacturers through unfair trading practices and contract terms that exploit the clear power imbalance in the sector.”

“As local new car dealers are squeezed, it will ultimately be Australian customers who pay the price through less investment in local jobs and reduced access for regional communities,” said Mr Voortman.

“It is therefore, absolutely vital that the Government implements the commitments made prior to the election to extend unfair contract terms to all new car franchisees and to develop an unfair trading practices prohibition for franchisees.”

“In the past five years, 28 brands have set up in Australia. However, an increase in the number of brands has not resulted in increased profits. If this trend continues, we certainly don’t want to end up in a situation where we’re seeing dealerships closed, and local jobs lost,” said Mr Voortman.

The call to protect Australian dealers comes as the AADA releases its 2026 ‘Dealernomics’, an evidence-based report with insights into the performance of franchised car and truck dealers across Australia, as well as broader trends shaping the automotive market.

The latest edition shows the sector continues to play a significant role in the national economy, with 3,868 dealerships across Australia contributing $21.5 billion in economic activity and employing more than 64,000 people, including 7,508 apprentices.

“Australian franchised new car dealers have seen their fair share of manufacturers come and go. However, new car dealers are dedicated to their communities and have always been there to honour warranty obligations, Australian Consumer Law guarantees, and recall requirements for drivers.”

“In a rapidly changing industry, it is imperative that the automotive infrastructure and services that Australians rely upon are protected and maintained,” said Mr Voortman.

The 2026 Dealernomics Automotive Statistics booklet is available for download below.

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The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, has released the February 2026 Automotive Insights Report (AIR), providing a national snapshot of used car sales and listings each month.

February continued the year’s steady momentum, with used car sales holding firm following January’s strong rebound. Listings tightened further, reinforcing ongoing supply constraints across the market.

February recorded 213,856 used cars sold, down 4.3 per cent from January. Active listings declined a further 6.9 per cent, continuing the supply squeeze that has characterised the past several months.

“Sales have remained solid following January’s lift, and while the days to sell eased slightly for the first time since September 2025, consumers are still taking their time when making purchasing decisions. It’s a more rational market than the peak periods we saw in recent years and speaks to the economic tensions Australia is facing,” said AADA CEO James Voortman.

The Ford Ranger once again topped the models leader board, maintaining its long‑standing position as Australia’s best‑selling used vehicle.

Key insights from the February 2026 AIR include:

• Stable demand: National used car sales declined to 213,856 vehicles, down 4.3 per cent month on month.
• Listings tighten: Active listings fell to 321,602, down 6.9 per cent from January.
• Selling times: Average days to sell decreased to 46.6, bucking the gradual upward trend seen since September.
• Top model: The Ford Ranger remained Australia’s best selling used vehicle.

Important updates to AIR methodology and coverage:

To improve the accuracy and representativeness of the Automotive Insights Report, several significant enhancements have been introduced in the February edition:

• Vehicle volume coverage has been expanded to include vehicles up to 20 years of age, providing a more complete view of Australia’s used car market.
• Demo vehicles are now included in the reporting, capturing a segment that plays an increasingly important role in consumer purchasing behaviour.
• A major classification improvement has been implemented to more accurately distinguish plug‑in hybrid electric vehicles (PHEVs) from conventional hybrids. This refinement results in lower reported hybrid volumes and higher PHEV volumes, better reflecting the true composition of the national fleet.

These updates represent one of the most impactful methodological improvements since AIR was first released, and the AADA is committed to communicating these changes clearly and transparently to ensure media and industry stakeholders understand their significance.

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The Australian Automotive Dealer Association (AADA) welcomes the announcement from the
Albanese Government to commence consultation to extend the ban on unfair contract terms to
all franchisees including our franchised new car dealer members.

The AADA represents nearly 4,000 Australian new car franchisees across the country who are
all in commercial relationships with multinational firms. Extending the ban on unfair contract
terms to cover the new car sector will go some way to addressing the power imbalance in our
sector and help protect the over 68,000 Australians our members employ.

“This consultation is a welcome first step to legislate the Albanese Government’s election
commitment ban on the use of unfair contract terms and importantly, unfair trading practices in
the automotive franchising sector,” said AADA CEO James Voortman.

“Several Senate inquiries and Federal Court Cases have shown that franchisors will arbitrarily
include unfair contract terms in their contracts, reinforcing the power imbalance which exists in
the franchising sector.”

“The automotive industry is going through the most significant transition Australia has seen, with
a record number of new brands entering the market and legacy manufacturers struggling to
compete.”

“Extending this ban to the franchising sector will ensure that Australian automotive businesses
are better placed to stand up to contractual terms that unfairly favour automotive manufacturers
at the expense of dealers.”

The AADA will now continue to advocate for the Albanese Government to legislate the remaining
election commitment, and the missing piece of the puzzle, the ban on unfair trading practices in
franchising.

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The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, has released the January 2026 Automotive Insights Report (AIR), a national snapshot of used car sales and listings each month.

The new year has begun with stronger activity in the used car market, with sales increasing month on month while listings continued to tighten. At the same time, vehicles are still taking longer to sell compared with a spring low point, pointing to a more balanced market and more cautious buyer behaviour.

January recorded 188,421 used cars sold, up 9.7 per cent from December. On the supply side, vehicle listings declined by 5.4 per cent month on month.

“A solid lift in sales to start the year suggests buyers have returned to the market after the typical December slowdown, but conditions remain more balanced than the highs we saw in previous years,” said AADA CEO James Voortman.

“Even with stronger volumes, days to sell have continued trending higher since the lows recorded in September, which tells us consumers are taking their time and shopping carefully.”

Alternative powertrains again stood out and led the way with increases. Hybrid and electric vehicle sales both increased month on month, with hybrids up 15.3 per cent and EVs up 20.1 per cent, reflecting steady growth in demand for lower-emission options across the used market.

The Ford Ranger maintained its long-held position as Australia’s top-selling used vehicle, continuing its consistent run at the head of the models leader board.

Key insights from the January 2026 AIR include:

• Sales rebound: National used car sales increased to 188,421 vehicles, up 9.7 per cent month on month.
• Listings ease: Active listings declined to 291,666, tightening 5.4 per cent from December.
• Slower turnover: Average days to sell rose to 49.4 days, continuing the gradual increase since September’s low.
• Alternative growth: Hybrid sales lifted 15.3 per cent and EV sales climbed 20.1 per cent month on month.
• Top model: Ford Ranger retained its position as the nation’s best-selling used vehicle.

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The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, has released the Annual 2025 Automotive Insights Report (AIR), providing a comprehensive overview of Australia’s used car market over the past calendar year.

National used car sales totalled 2.32 million vehicles in 2025, down 0.37 per cent compared to 2024, highlighting a broadly stable market year on year. After several years of disruption, the used car market settled into a more sustainable operating environment in 2025, with conditions improving for both buyers and sellers and less extreme movement in prices and stock availability.

A notable shift during the year was the growing share of dealer-led transactions. Dealer sales accounted for 48.6 per cent of the used car market in 2025, up from 39.1 per cent in 2024, reflecting stronger consumer confidence in the dealer channel and improved availability of dealer stock.

“The increase in dealer market share reflects growing consumer confidence in what purchasing through a dealer provides,” said AADA CEO James Voortman. “Dealers are playing a more prominent role as consumers seek greater certainty around pricing, vehicle quality and after-sales support in a more balanced market environment.”

Vehicle preferences continued to evolve throughout 2025, with SUVs further strengthening their dominance of the used car market, while passenger vehicles continued to lose share. At the same time, electrified vehicles including hybrids, electric vehicles and plug-in hybrid electric vehicles continued to grow their presence in market share.

“The Annual 2025 Automotive Insights Report confirms the used car market has moved beyond the distortions of recent years and into a more stable, sustainable phase. What we’re seeing now is a structurally healthier market, where disciplined pricing, better stock availability and data-led decision-making are once again central to dealer performance,” said AutoGrab COO Saxon Odgers. “With supply chains normalising and transparency improving, the 2025 results provide a constructive foundation for 2026. Dealers and OEMs now have a clearer line of sight to pricing, risk and inventory planning than at any point in the last five years.”

Key insights from the Annual 2025 Automotive Insights Report include:

• Stable annual sales: National used car sales declined by just 0.37 per cent compared to 2024.
• Dealer share rises: Dealer transactions increased to 48.6 per cent of total sales, up from 39.1 per cent in 2024.
• Electrification gains ground: Hybrid, EV and PHEV vehicles all increased their share of the used car market.

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Over the past 3 years, Australian’s intentions to purchase an electric vehicle has flatlined despite new EV brands coming into the market at cheaper prices with declines found in regional Australia.

The Australian Automotive Dealer Association (AADA) has surveyed Australian drivers annually since 2022 to understand their intention to purchase an EV, helping new car dealers respond to changing consumer demand.

The latest survey shows that, despite three consecutive years of growth in the overall new car market, intention to purchase an electric vehicle as a main car has remained unchanged. This is despite the entry of new EV brands at lower price points and the introduction of government incentives designed to accelerate EV uptake.

The consumer survey also found that there has been a national decline in intention to purchase an electric vehicle in regional and rural Australia. This is a significant finding backing up direct evidence from new car dealers of the reluctance of regional drivers to make the transition to electric vehicles.

“Our members are committed to supporting Australia’s transition to lower-emissions vehicles and want to meet Australian driver’s needs,” said AADA CEO James Voortman. “However new car dealers are not yet seeing a significant increase in the number of consumers intending to purchase an EV at the scale required.”

In 2025 the Government released the Climate Change Authority’s modelling for Australia to meet its 2035 emissions targets. A significant part of that modelling was the reliance of Australians buying electric vehicles, with 50 per cent of all new car sales every year to 2035 needing to be electric. Based upon the results from the fourth edition of this survey, this will be challenging.

However, there are positive indicators where there is an increase in consumers’ intention to purchase a hybrid or plug in hybrid electric vehicle which is also demonstrated in recent sales data.

“What we are seeing is the automotive transition is happening but at the pace of the consumers choosing,” said Mr Voortman.

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