AUSTRALIA’S used-car market has shown increased activity – including higher sales – in the first month of the new year in what the latest industry report said was indicative of the market being more balanced and yet with a more cautious buyer attitude than recent months.

The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, said in its January 2026 Automotive Insights Report (AIR) – a national snapshot of used car sales and listings each month – that sales are increasing month on month while listings continue to tighten.“At the same time, vehicles are still taking longer to sell compared with a spring low point, pointing to a more balanced market and more cautious buyer behaviour,” the report said.

The AIR said that in January there were 188,421 used cars sold, up 9.7 per cent from December. On the supply side, vehicle listings declined by 5.4 per cent month on month, to 291,666 units. At the same time, the turnover was slower with the average days to sell rising to 49.4 days. This continues the gradual increase in the sales times since the lows in September.c

AADA CEO James Voortman said: “A solid lift in sales to start the year suggests buyers have returned to the market after the typical December slowdown, but conditions remain more balanced than the highs we saw in previous years”.

James Voortman

“Even with stronger volumes, days to sell have continued trending higher since the lows recorded in September, which tells us consumers are taking their time and shopping carefully.”

Saxon Odgers, chief commercial officer at AutoGrab, said January’s results show clear momentum returning to the market, with sales lifting while inventory tightens. That combination creates stronger trading conditions for dealers who are pricing accurately and stocking the vehicles buyers want most.

“The fastest-moving stock continues to be SUVs, Utes and newer electrified vehicles. Dealers that align their inventory mix to those segments are seeing quicker turn and improved outcomes.”

“With listings down nationally, disciplined sourcing and data-led pricing are becoming even more important. Dealers who understand local supply and demand can protect margins while still staying competitive.

“Encouragingly, we’re seeing consistent growth across every state. That breadth of activity gives dealers confidence that demand is not isolated. It’s a nationwide trend supporting stable, sustainable trading conditions,” Mr Odgers said.

Saxon Odgers

The report said alternative powertrains again stood out and led the way with increases. 

Hybrid and electric vehicle sales both increased month on month, with hybrids up 15.3 per cent and EVs up 20.1 per cent, reflecting steady growth in demand for lower-emission options across the used market. 

EV listings were up 30.5 per cent at 6869 units in January, while actual sales were 2889 units, a rise of 20.1 per cent in December.The retained values for EVs have fallen. AIR shows the average retained value is now 86.1 per cent, down from the 102.6 per cent of December.

Also, the days to sell period is extended. In January it took an average now of 61.1 days to sell an EV, up from the 53.8 days of December and the 40.7 days of September 2025.

Retained values for the passenger car segment is topped by the Audi RS3 that has 102.7 per cent, followed by the Kia Picanto at 97.6 per cent and the Ford Mustang at 97.5 per cent.

For SUVs, the Suzuki Jimny is still at the top with 109.2 per cent in January. It was followed by the Porsche Macan at 108.8 per cent and the Toyota RAV4 at 105.5 per cent.

The Ford Ranger maintained its long-held position as Australia’s top-selling used vehicle, continuing its consistent run at the head of the models leader board.

It sold 5346 units in January, up 5.7 per cent on December. Second place went to the Hilux (4113 units sold), then Corolla, RAV4 and Hyundai i30.

AIR noted that it took an average of 58.4 days to sell a Ranger compared with 50.2 for the Hilux and 53.4 for the Triton.