Market Update: What’s Driving the Used Car Market in January?

As we step into 2025, the Australian used car market continues to present challenges for sellers and opportunities for buyers. The latest report reveals how the market has been influenced by a change in supply, demand, and consumer trends. Here’s what’s happening now:

Supply Tightens but Remains Buyer-Friendly

After months of oversupply, December saw a 3.8% decline in used car listings, dropping to 322,532 vehicles. Despite this reduction, the market remains in favor of buyers, as total sales experienced a sharp decline of 8.1%, down to 181,724 units. This disconnect between supply and demand means buyers continue to find great deals, particularly during the festive season.

Slower Selling Times Persist

The average time to sell a used car increased slightly to 48.7 days, the highest since October. This indicates that sellers are grappling with slower-moving stock, a trend expected to continue as new vehicle oversupply impacts the used car market.

Sellers can adapt by pricing competitively and acting quickly. At Car Buyers Online, we help cut through the clutter, ensuring a streamlined sales process to avoid the frustration of drawn-out listings.

State-by-State Trends

Most states recorded a decline in used car listings during December, with notable exceptions:

• Northern Territory: Listings increased by 7.5%.
• Western Australia: Experienced modest growth of 0.5%.

Meanwhile, sales of used EVs rose in Western Australia (+19.8%) and South Australia (+10.7%), signaling localized shifts in demand for greener alternatives.

Retained Values Under Pressure

The oversupply of new vehicles is driving down retained values across nearly every segment and age category. However, some models still hold their value well:

• Passenger Vehicles: The Ford Mustang retained 97.0% of its value in the 2-4 year category, while the Toyota Yaris led the 5-7 year category at 97.5%.

• SUVs: The Suzuki Jimny held its top spot for 2-4 year-old SUVs with a retention rate of 110.7%, while the Toyota Landcruiser took the lead in the 5-7 year category at 87.9%.

• Light Commercial Utes (LCVs): One of the few bright spots, LCVs in the 2-5 year categories saw retained values hold steady.

EV Trends Show Mixed Results

Interest in electric vehicles (EVs) continues to grow, but challenges remain. The average time to sell a used EV has returned to August levels, reflecting slower movement in some states. However, Western Australia and South Australia saw a rise in EV sales, indicating pockets of growing demand.

The MG MG4 regained its position as the best-selling used EV, highlighting its increasing popularity among consumers seeking greener options.

Best-Selling Models

The Ford Ranger maintained its status as Australia’s best-selling used car, followed closely by the Toyota Hilux. These vehicles continue to dominate thanks to their versatility and reliability, appealing to a wide range of buyers.

What Does This Mean for Sellers?

While reduced supply might initially seem like good news for sellers, the drop in demand has created a competitive environment. Sellers should:

• Act quickly to avoid the growing impact of longer selling times.
• Price competitively, especially in segments experiencing declines in retained values.
• Leverage professional services, like Car Buyers Online, to bypass the challenges of private sales and achieve faster results.

Whether you’re selling a diesel ute, a reliable SUV, or a rising EV model, we make the process easy, efficient, and competitive. Contact us today to discover how we can help you navigate the market confidently.

Sources include AADA: Australian Automotive Dealer Association.