The January 2025 edition of the Automotive Insight Report (AIR) highlights a shift in the Australian used car market, with supply increasing by 3.4 per cent to 333,386 listings, reversing previous months of decline. However, consumer demand remains subdued, with total sales dropping by 5.9 per cent.
“The increase in listings, coupled with declining sales, suggests that the market continues to favour buyers,” said AADA CEO James Voortman. “Sellers are facing longer wait times to move stock, with average days to sell holding at 48.5. This trend may persist as the growing availability of new vehicles continues to impact the used car sector.”
“Retained values remained under pressure, with most vehicle segments showing declines. However, retained values for light commercial vehicles saw slight increases in some age categories, continuing to buck the trend.”
“The EV segment also experienced weakening demand, with total EV sales down by 7.9 per cent, and listing-to-sale ratios remaining the highest among all vehicle categories. This reflects the ongoing impact of new vehicle oversupply, which is putting downward pressure on used EV prices,” Mr Voortman added.
In retained value rankings, the Ford Mustang held the highest value among passenger vehicles (in the 2-4 year category), while the Suzuki Jimny continued a 15 month hold on the top spot in the SUV category. Toyota further cemented its market strength, holding 7 of the top 10 SUV retained value rankings.
HIGHLIGHTS FROM THE AIR FOR JANUARY 2025
- 171,007 used cars were sold in January, a decrease of 5.9 per cent from the previous month.
- Dealer contribution to both sales and listings is at its highest level in recent history.
- Sales declined across all states, with NT (-10.1 per cent) and VIC (-9.9 per cent) experiencing the largest drops.
- Average days to sell a used vehicle remained steady at 48.5 days.
- Passenger and SUV retained values declined across most model years, with LCV-Utes showing minor gains.
- Ford Ranger remains Australia’s best selling used car.
- Japanese manufacturers dominated the top sellers list, with 8 of the top 10 models originating from Japan, and Toyota alone accounting for 5 of the top 10.
- EV retained values continued to lag significantly behind other segments.
