AADA Welcomes Consultation on Election Commitment to Protect Franchised New Car Dealers

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.

DOWNLOAD MEDIA RELEASE

January Automotive Insights: Used Car Sales Up, Listings Tighten

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.

DOWNLOAD JANUARY 2026 AIR

DOWNLOAD MEDIA RELEASE

Used Car Market Stabilises as Dealers Play a Greater Role

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.

DOWNLOAD ANNUAL 2025 AIR

DOWNLOAD MEDIA RELEASE

EV Purchase Intentions Steady Despite Cheaper Models, With Regional Gaps Emerging

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.

DOWNLOAD EV & HYBRID VEHICLE WAVE 4 INSIGHTS REPORT

DOWNLOAD MEDIA RELEASE

Used Car Market Ends 2025 on a Softer Note

The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, has released the December 2025 Automotive Insights Report (AIR), providing a national snapshot of used car sales and listings.

The latest figures show further softening in the used car market to close out the year, with December recording the lowest monthly sales result since January 2025, alongside the lowest level of active listings for the year. At the same time, vehicles are taking longer to sell, reinforcing the gradual cooling that has emerged over recent months.

National used car sales fell to 171,837 vehicles, down 11.1 per cent from November, while total active listings declined 1.7 per cent to 308,315, marking the lowest listing volume recorded in 2025.

“December capped off a year where momentum in the used car market steadily eased, with listings falling to their lowest point of 2025,” said AADA CEO James Voortman.

“Longer days to sell are now a clear trend, reflecting more price sensitivity among buyers and a more balanced market environment compared to the heightened conditions of recent years,” he said.

Despite the overall slowdown, alternative powertrains continued to gain ground. Hybrid vehicles, electric vehicles and plug-in hybrid electric vehicles all increased their share of the used car market compared to December 2024, highlighting ongoing consumer interest in lower-emission options, even as total sales volumes declined.

Key insights from the December 2025 AIR include:

  • Sales decrease: National used car sales fell to 171,837 vehicles, the lowest monthly result since January 2025.
  • Listings tighten: Total listings for the month declined to 308,315, the lowest level recorded since August 2024.
  • Slower turnover: Average days to sell rose to 47.0 days, increasing for the third month in a row.
  • Broad-based decline: Sales eased across all states and major vehicle segments, consistent with a softer end-of-year market.

View the full December 2025 AIR below.

The AADA and AutoGrab will release the ‘2025 Year That Was’ Automotive Insights Report in the coming weeks, providing a comprehensive overview of used car market trends across the full calendar year.

DOWNLOAD DECEMBER 2025 AIR

DOWNLOAD MEDIA RELEASE

Record Increase of Imported Car Brands Coming to Australia in 2026, Even More Coming by 2031

New data released shows that Australia will have 67 brands selling vehicles in Australia in 2026 and 75 brands in 2031 making it one of the most competitive markets in the world.

The Australian Automotive Dealer Association (AADA) commissioned respected automotive data and modelling agency Blue Flag to detail the number of brands projected to come to Australia so that franchised new car dealers fully understand the market wave that is coming their way.

“We are currently seeing an overflooding of the Australian market with new brands coming thick and fast,” said AADA CEO James Voortman.

The new data details that in 2026 there will be a record number of brands with 8 new entrants stating their intentions to set up in Australia from last year and an increase of 28 new brands by the year 2031, a 92 per cent rise in the number of brands in Australia in 10 years from 2021.

“These new brands see Australia as having very attractive policy settings that are geared for the supply of electric vehicles where they can test their product in a western market with low upfront investment when compared to other western countries.”

“What is obvious is not all these new, and even established brands will be able to compete long term. Australian drivers will always be attracted to value-based products that offer a quality experience but more so, a quality after sales experience with reliable and timely servicing and repair work. Brands that cannot compete on that level will struggle.”

However, in the race to supply vehicles to Australia, the AADA is asking the Government to move at pace to protect Australian franchised new car dealers with their election commitment before we start to see market consolidation and departures.

“After recent the recent Federal Court decision involving Australian new car dealers and Mercedes-Benz AG, we have seen that franchising laws will not protect against franchisors using their power imbalances to increase their profits at the expense of Australian businesses.”

“The Albanese Government must move to legislate on their election commitment to introduce an Unfair Trading Practices regime to protect franchised new car dealers which will give them confidence to invest in the transition to electric vehicles.”

DOWNLOAD MEDIA RELEASE

Used Car Market Softens as Sales and Listings Ease Nationally

The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, has released the November 2025 Automotive Insights Report (AIR). The report provides a national snapshot of used car sales and listings, with the figures revealing a broad softening across the used car market as both sales and listings decline.

National used car sales fell to 193,266 vehicles, down 6.4 per cent from October, while total active listings eased 3.5 per cent to 313,781. The slowdown was consistent across all major states and segments, signalling a cooling phase following a long period of heightened activity.

“November saw a clear softening across the board, with fewer buyers active in the market and a gradual reduction in stock levels,” said AADA CEO James Voortman.

“This softer activity is something many dealers will recognise on the ground, fewer leads, longer days to sell, and a shift toward more deliberate consumer purchasing behaviour,” he said.

Key insights from the November 2025 AIR include:

  • Sales soften: National used car sales declined 6.4 per cent to 193,266 vehicles, with decreases across every state and territory.
  • Market cooling: Average days to sell increased to 46.7 days, indicating slower turnover.
  • Listings ease: Total used car listings dropped 3.5 per cent to 313,781, with most states showing reduced supply.
  • Fuel types ease evenly: Sales across all fuel types declined at a broadly similar rate, reflecting the overall softening in the market.
  • SUVs remain strong: SUVs accounted for over 43 per cent of all used car sales despite month-on-month declines.

DOWNLOAD NOVEMBER 2025 AIR

DOWNLOAD MEDIA RELEASE

AADA Engages Eminent Professor Jenny Buchan to Conduct a Root and Branch Review into Australian Consumer Law

The Australian Automotive Dealer Association (AADA), which represents over 3,000 franchised new car dealers, has launched a Review into the Australian Consumer Law (ACL) in the automotive industry to ensure that both consumers and Australian retailers are better protected under the law.

Today the AADA has launched its Review and is calling for submissions from all industry stakeholders including auto manufacturers, consumer groups, and other industry associations on how the ACL is currently performing for both car buyers and automotive dealers alike. The timing for the review is appropriate, given the arrival of many new brands and manufacturers to our shores.

As a first step, the AADA has engaged an independent expert, Emeritus Professor Jenny Buchan, to develop an Issues Paper to be published in the first quarter of 2026. Emeritus Professor Buchan is an expert in addressing power imbalances in relationships between small and large business, and she will be consulting with industry, government and consumer groups before publishing the Issues Paper early in 2026.

“Quite rightly consumers purchasing motor vehicles hold the dealer and manufacturer(s) of those products and services to a very high standard,” said AADA CEO James Voortman, CEO of AADA.

“However all too often it is the dealer, who played no role in manufacturing the vehicle, who carries the lion’s share of risk in meeting the ACL obligations, with flow on effects on the consumer.”

“The vulnerable position of the dealer can often be used by some manufacturers to reduce their own risk by obstructing the dealers’ statutory right to indemnification. This practice by the manufacturer (who built the vehicle), is a key feature of the power imbalance found in our industry and has negative consequences for consumers.”

To ensure that the Issues Paper clearly identifies issues surrounding the effectiveness of the ACL in meeting automotive consumers’ expectations, Prof. Buchan will conduct the review by interviewing key stakeholders, reviewing relevant ACL provisions and publishing key findings on how the automotive industry is unique in its obligations to consumers. The review will also look to best practices overseas where the vehicle manufacturers are in no doubt as to what the indemnification processes are.

“Identifying and addressing power imbalances has been a key feature of my professional experience. To be able to bring my experience and author this Issues Paper, when the biggest transition to low emission vehicles is happening right now in Australia, is something that I can see is very pertinent,” said Emeritus Professor Jenny Buchan.

This Review is timely considering the recent Government announcement to strengthen supplier indemnification laws, making now an opportune time to ensure that there is clarity in applying the law on behalf of consumers and if not, there is time to amend laws before new civil penalties are in place.

For more information about the Review and how to make a submission head to https://www.aada.asn.au/acl-review/.

About Emeritus Professor Jenny Buchan LLB (Otago) LLM (Melbourne), PhD (QUT)

Prior to working for UNSW Business School to teach law to business graduates in 2002 Jenny Buchan worked for 20 years as a transactional lawyer in New Zealand, Melbourne and Sydney, and as a competition and consumer protection law compliance consultant. Now, she teaches law at UNSW Law School and is a Senior Advisor at H&H Lawyers.

In recognition of her expertise in franchising and consumer law she was a panel member of the Australian Competition and Consumer Commission’s Small Business Consultative Committee from 2010 – 2022.

Jenny’s research has addressed power imbalances in relationships between small and large business, a stark focus in many franchise relationships.

DOWNLOAD MEDIA RELEASE

AADA Welcomes Government Announcement on Supplier Indemnification and Unfair Trading Practices, More To Be Done

The Australian Automotive Dealer Association (AADA) welcomes the commitment by Consumer Affairs Ministers to improve supplier indemnification under the Australian Consumer Law and the announcement that work has commenced to introduce an Unfair Trading Practices regime to franchising.

This announcement is testament to the effective work of Minister Andrew Leigh and represents a crucial first step in giving confidence to new car dealers to provide new and emerging car brands and technologies to consumers.

With Government policies such as NVES and the FBT Exemption for electric vehicles incentivising a record amount of new car manufacturers to enter the Australian market, it is imperative to have in place strong consumer and dealer protections.

“The AADA is seeing an unprecedented number of new brands entering or signalling their intention to come to Australia. This will bring positive consumer outcomes in terms of competitive pricing, but it is important that adequate protections are also in place,” said AADA CEO James Voortman.

“The changes to the law will make it harder for international car brands to escape their indemnification obligations under the ACL and result in better outcomes for dealers and consumers. The ACCC and other inquiries have found that new car dealers often struggle to enforce their statutory rights to be indemnified when honouring their ACL obligations with existing brands let alone new untested brands.”

While this is a very important first step, the AADA believes a lot more work needs to be done to ensure that Australia’s consumer law framework is fit for purpose for the challenging times ahead when consumers are looking to purchase new and emerging brands.

The AADA also commends the announcement that work has begun on their election commitment to introduce an Unfair Trading Practices regime to the Franchising Code of Conduct. Recently a Federal Court Judge found that amendments must be made to the Franchising Code in order to protect dealer’s investments.

DOWNLOAD MEDIA RELEASE

Hybrid Used Car Sales Surge as Australians Balance Practicality and Sustainability

The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, has released the October 2025 Automotive Insights Report (AIR). The report provides a national snapshot of used car sales and listings, with 206,503 vehicles sold during the month, up 2.8 per cent on September.

AADA CEO James Voortman said hybrid sales continue to climb as Australians seek vehicles that meet their lifestyle needs while reducing their environmental impact.

“Used hybrid sales have more than doubled in the last two years, rising from 6,868 in October 2023 to 14,784 vehicles this month,” Mr Voortman said.

“Consumers are clearly looking for practical options that deliver lower running costs and emissions without compromising on convenience. Hybrid vehicles are offering that middle ground with a proven technology that suits everyday driving and reflects growing environmental awareness.”

Hybrid listings also increased strongly, up 21.1 per cent month-on-month, highlighting rising supply and consumer confidence in the segment.

While electric vehicle sales also rose modestly (up 7.9 per cent), the hybrid segment showed the sharpest growth, outpacing both petrol and diesel. Overall used car activity remained stable, with total listings easing 3.9 per cent and dealers accounting for 52.4 per cent of all sales.

“We’re seeing a diverse market where buyers are weighing all their options,” Mr Voortman said.

“Australians are purchasing vehicles that best suit their needs, whether that’s a hybrid for daily efficiency, a diesel for towing, or an electric vehicle, but there’s a definite trend toward more sustainable choices,” he said.

Key insights from the October 2025 AIR include:

  • Sales rise: National used car sales totalled 206,503, up 2.8 per cent month-on-month.
  • Listings ease: Active listings fell 3.9 per cent to 325,018, with reductions across most states.
  • Hybrid momentum builds: Used hybrid sales climbed 37.3 per cent month-on-month and are up nearly 50 per cent year-on-year.
  • EVs gain traction: Used EV sales rose 7.9 per cent to 3,231 vehicles, continuing steady growth.
  • SUVs remain dominant: The segment accounted for over 43 per cent of all used car sales.

DOWNLOAD OCTOBER 2025 AIR

DOWNLOAD MEDIA RELEASE