Drivers appear to be holding onto cars longer as the used car market contracts and sales outstrip supplies.
In figures that replicate the federal governments annual evaluation of the Australian car parc, the July Automotive Insight Report (AIR) showed used cars sales rose by 11.6 per cent but listings fell 5.8 per cent.
The monthly used car market data put out by the AADA and Autograb shows the average days to sell have stayed steady at 43.6 but it is the lowest in the past 12 months indicating a trend to hold onto cars for longer.
Last month the federal government’s annual evaluation of registered vehicles found the average age of vehicles across Australia increased from around 11.25 years in 2023 to around 11.40 years in 2024 while for passenger vehicles these ages increased from around 11.0 years in 2023 to 11.18 years in 2024.
In what is also largely a mirror image of new car sales, he Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux.
“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 make an effort to escape the rising cost-of-living pressures,” said AADA CEO James Voortman.
“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 per cent. However, this reduction in supply should be considered in the context of a significant increase in supply since the start of the year,” he said.
“Demand for used cars has strengthened across all categories, with passenger vehicles showing the largest growth, rising by 13.1 per cent to 88,686. Meanwhile, the supply of EVs saw the most significant decline (-16.1 per cent), even as demand increased by 12.2 per cent. This suggests that people are holding onto their EVs for longer, tightening the supply in the used EV market,” he said.
“One of the trends we have seem emerge from the start of the year in 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 per cent mark suggesting they are pricing vehicles to sell,” said AutoGrab Chief Commercial Officer Saxon Odgers.
“Retained values continue to decline with every vehicle segment across every age category experiencing a drop in value for the month,” he said.
Sales in Victoria rebounded to take the top position (14.1 per cent), while ACT (+1.4 per cent) and NT (-15.6 per cent) were weakest in terms of sales.
Retained values continue their gradual decline with passenger vehicles holding their value best in the 2-4 year age bracket (82.1 per cent) as well as for the older 5-7 year category (68.1 per cent).