The May edition of the Automotive Insights Report (AIR) 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 grew in recent months, increasing by 7.2% from the previous month, while used car sales 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 prices,” says Australian Automotive Dealers Association (AADA) chief executive 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.
“Over the past month, we have seen a marked reduction in used cars listed by Dealers as more Australians seek to sell their vehicles privately. With the prevalence of online scams, odometer fraud and the lack of statutory protections when buying privately, consumers must exercise due diligence when engaging in a private-to-private used car transaction.
“We are also seeing solid 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.
“The average time to sell a used car has increased slightly to 45.5 days, a likely product of the improving supply situation, which also reduces retained values across all segments.
“Vehicles with the most vital retained values are primarily sought after and reliable Japanese makes in both the passenger car and SUV segments and in the 2-4 year and 5-7 year categories.
“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 says
May 2024 AIR highlights
• 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 the highest increase at 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 most significant monthly increase in sales of 7.3%.
• Petrol and Diesel dominate the used car market, but there has been strong growth in lower-emissions vehicles, such as hybrids, EVs and PHEVs.
• The 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.
