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.

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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.

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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.

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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.

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Used Car Sales Steady But Retained Values for Electric Vehicles Remain Challenged

The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, has released the September 2025 Automotive Insights Report (AIR). The report is a national snapshot of used car sales and listings for the month of September, with 200,916 vehicles sold during the month.

AADA CEO James Voortman said price pressures in the new EV market are clearly flowing through to used cars with challenges remaining regarding vehicle depreciation.

“Used EV prices have dropped faster than the rest of the market, which isn’t surprising given the big discounts now being offered on new models,” he said.

“We’re seeing those price cuts flow through to the second-hand market, so buyers are getting better value but sellers are facing steeper depreciation.”

“Higher depreciation doesn’t just impact private owners, it flows through to trade-in values, dealer margins and fleet replacement costs, all of which shape how quickly EV adoption grows,” said Mr Voortman.

September’s results show the used car market holding steady, with total sales edging slightly lower but vehicles selling faster than at any point this year. Average days to sell fell again, indicating sustained buyer activity despite overall volumes easing.

Key insights from September include:

  • Sales ease slightly: National used car sales totalled 200,916, down 1.3 per cent month-on-month. NSW and the NT bucked the trend, recording increases in sales activity.
  • Vehicles selling faster: The average days to sell fell to 42.4 days, down from 43.9 in August – the lowest figure of 2025 so far and continuing the steady decline from March’s high of 51.3 days.
  • Dealer activity steady: Dealers accounted for 53.1 per cent of all sales and 59.8 per cent of listings, showing stable participation despite a marginal dip in total active listings to 338,090.
  • EV momentum returns: Used EV sales rose 8.9 per cent to 2,995 vehicles, reversing last month’s fall.

“The used car market continues to show resilience. Even with overall volumes softening, vehicles are turning over faster, which highlights strong underlying demand for well-priced stock. Dealers are maintaining solid inventory levels and adapting quickly to changing consumer preferences,” said Mr Voortman.

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Dealers Warn CCA Modelling Ignores Billion Dollar Cost to Australian Businesses

The Australian Automotive Dealer Association (AADA) is disappointed by yesterday’s announcement that the Climate Change Authority (CCA) modelling has ignored the cost to the 3,200 franchised new car dealers across the country.

The AADA recognises that the 2035 target is a significant step in Australia’s climate policy ambitions and our members stand ready to help transition Australian drivers to more fuel-efficient vehicles, however it is naïve to conclude that the adoption of electric vehicles will escalate significantly and contribute to our country’s emissions reduction over the next 5 years without significant cost.

The AADA is concerned that the new car retail sector is already being asked to make an enormous reduction over the next five years through the New Vehicle Efficiency Standard (NVES). In addition, any further action to try and achieve very ambitious EV targets could be detrimental to dealership businesses and their customers.

Recent independent research commissioned by the AADA from the Centre for International Economics estimates that the legislated NVES will impose dealership wide costs of between $1.1 billion and $2.1 billion over the five years. Spread across Australia’s 3,200 franchised new car dealers, that equates to hundreds of thousands of dollars (roughly between $343,000 and $656,000 per dealership), a substantial burden on Australian businesses.

“The AADA has briefed the CCA on the impact of the slowing adoption rate of electric vehicles and the costs this will impose on dealers,” states James Voortman, CEO of the AADA.

“While the AADA and our members support an ambitious and achievable emissions target, it will be our members and their 70,000 employees who will have to pay for the short-term cost of our targets over the next 5 years.”

The AADA remains committed to working constructively with government and regulators to reduce light vehicle emissions while safeguarding the long-term viability of Australian dealers and will be putting forward detailed modelling to show the real-world impact to new car dealers as part of the 2026 NVES review.

New car dealers are the face of the light vehicle transition, dealers are investing in training, infrastructure and consumer education to support low and zero emission vehicles. However, significant policy development such as the NVES requires careful implementation and ongoing assessment to support Australian businesses, maintain consumer choice and ensure regional areas aren’t left behind.

Importantly the Government must move at speed to implement their 2025 Budget commitment to ensure that Australian new car dealers are supported with strong franchising protections so that our members have the confidence to invest in new brands that consumers want to buy.

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Used Cars Selling Faster as Average Days to Sell Hits Year Low

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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Used Car Sales Dip as Retained Values Continue to Ease

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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Mid-Year Insights Show Used Car Supply Surging

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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New Research Maps Australia’s Automotive Future

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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