The December edition of the Automotive Insights Report (AIR) has been released.
It shows that used car trading softened in December compared to the previous month, most likely due to seasonal factors. The average time it takes to sell a used car is increasing over time, while the retained values of used cars is edging down.
“In December used car sales and cars listed for sale contracted from the previous month as Australians fell into the Christmas and New Year holiday period,” AADA chief executive James Voortman says.
“Petrol and diesel cars dominate the used car market making up around 95% of cars sold and cars for sale. The market for used electric vehicles is immature but is expected to grow as new EV sales make their way onto the used market.
“Despite a reduction in days to sell from the previous month, we are still seeing a trend of used vehicles taking longer to sell with December being the second month in a row that average days to sell is over 50.
“The retained value of cars continues to reduce, indicating an improving supply situation which should bode well for consumers,” he said.
The Automotive Insights Report shows that in December:
• Across Australia 276,268 vehicles were listed for sale and in that period 169,312 were sold.
• The data shows that the overwhelming majority of used cars being bought and sold have petrol or diesel engines.
• The used market for electric vehicles remains very immature with battery electric vehicles making up 0.7% of total cars sold and plug-in hybrid vehicles making up less than 0.2%.
• The average time to sell a used car is 50.9 days which is a slight reduction from the previous month, but the trend shows days to sell increasing.
• Retained values continue to decline after the record highs of recent years.
• Some popular used cars are worth more on average today than when they were sold new – examples include the Suzuki Jimny, Toyota Yaris/Yaris Cross, Toyota Landcruiser, Toyota RAV4 and Honda Jazz for vehicles aged between two and four years.
• The list of top selling cars in the used market closely reflects preferences in the new car market, with the Ford Ranger taking out top spot ahead of the Toyota Hilux.
The 2023 Annual Report rounding up the full calendar year of used car sales will be released to the public in the coming weeks.
“The dip in used car trading during the holiday season is notable but unsurprising. While the average time to sell saw a slight reduction, the overarching trend of increasing days to sell is one that we’ll keep monitoring in 2024,” AutoGrab’s chief commercial officer Saxon Odgers says.
“For people looking to buy a used car, you’ll likely find your dollar going further and potentially be able to buy a newer model than you expect. The continued drop in used car prices is likely to extend into 2024.
“Another key sector seeing prices drop is the light commercial vehicles (LCV). While demand remains strong for utes, the price of used LCVs is easing. With great supply, there is room for buyers to be choosy when it comes to choosing a second hand ute.
“AutoGrab is proud to provide greater transparency and the most accurate valuations in the used car market with the leading insights into price trends for vehicles in Australia,” he says.
Dealers seeking more granular and local data can contact AutoGrab directly for a tailored solution.
If you are a Dealer of a contributing brand and would like access to the monthly report please email Communications Manager Ashleigh Sykes on asykes@aada.asn.au.
