The July edition of the Automotive Insight Report (AIR) indicates that the market for used cars is tightening, with rising sales and falling listings leading to a reduced gap between demand and supply.
The monthly used car market data compiled by AADA and Autograb shows a drop in used car listings by 5.8% to 285,133, while sales have jumped 11.6% to 214,588.
The average days to sell have stayed steady compared with last month at 43.6, yet this figure is still marginally lower than June and is the weakest in the past 12 months.
“With the commencement of the new financial year, buyers have flocked to the used car market, taking advantage of better supply and lower prices as they try to escape the rising cost-of-living pressures,” AADA chief executive James Voortman says.
“All states except Tasmania have experienced a drop in used car listings, while Northern Territory is the only state where sales remain sluggish, with a notable decline of 15.6%. However, this reduction in supply should be considered in the context of a significant increase in supply since the start of the year.
“Demand for used cars has strengthened across all categories, with passenger vehicles showing the largest growth, rising by 13.1% to 88,686. Meanwhile, the supply of EVs saw the most significant decline (16.1%), even as demand increased by 12.2%. This suggests that people are holding onto their EVs for longer, tightening the supply in the used EV market,” he says
“One of the trends that seems to emerge from the start of the year is an increase in the proportion of cars being listed privately with a subsequent reduction in Dealer listings. Vehicles sold by Dealers have remained around the 40% mark, suggesting they are pricing vehicles to sell,” AutoGrab chief commercial officer Saxon Odgers says.
“Retained values continue to decline with every vehicle segment across every age category experiencing a drop in value for the month,” he says.
Small vehicles in the passenger segment have once again proven to hold their value the best, with the Toyota Corolla and Toyota Yaris maintaining their top spots at 97.6% in the 2-4-year-old category and 96.7% in the 5-7-year-old category, respectively. While the Suzuki Jimny continues its retained value reign, holding the top spot in the 2-4 (115.6%) and 5-7 year-old (115.8%) SUV category.
AIR highlights from July 2024
The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux.
214,588 vehicles were sold, an increase of 11.6% compared to the previous month.
Tasmania was the only state to experience an increase in the supply of used cars, rising by 0.3%, while the Northern Territory was the only state to see a decline in demand, falling by 15.6%.
285,133 used cars were listed for sale in July, experiencing a drop of 5.8% from the previous month.
Sales in VIC rebounded to take the top position (14.1%), while ACT (+1.4%) and NT (-15.6%) were weakest in terms of sales.
The average time to sell a used car is 43.6 days, the lowest over the past 12 months.
Retained values continue their gradual decline, with passenger vehicles holding their value best in the 2-4 year age bracket (82.1%) and for the older 5-7 year category (68.1%).
