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AUSTRALIA’S used car market has surged ahead, bringing with it a downward pressure on prices, ahead of the end of the financial year.

Data from the Australian Automotive Dealer Association (AADA) and AutoGrab Automotive Insights Report for May shows the number of used cars  for sale in Australia continues to grow with listings up 7.2 per cent from April and actual vehicle sales up 4.4 per cent in the same period.

AADA CEO James Voortman said the rise in used cars available for sale was good for the industry and the consumer.

James Voortman

James Voortman

“Ongoing  strength in the new car market means that we are seeing an increased supply of used vehicles coming to market, providing consumers with more options at more affordable price points,” he said.

“We expect this trend to continue, particularly in the next few months leading into the  end of the financial year, which traditionally sees increased activity in both the new  and used car market.”

Mr Voortman said the used car market had seen a “marked reduction” in the number of used vehicles being listed by dealers as more Australians sell their car privately.

“With the prevalence of online scams, odometer fraud and the lack of statutory protections when buying private, consumers need to exercise due diligence when engaging in a private-to private used car transaction,” he said. 

“We are also seeing strong sales results for lower emissions vehicles with hybrids – up 6.6 per cent; EVs up 8.0 per cent and PHEVs up 16.6 per cent – growing above average. 

“EVs were the  only fuel type to experience a reduction in supply, which is to be expected given the  significant mismatch between demand and supply of used EVs.”

The AADA and AutoGrab’s Automotive Insights Report (AIR) for May also showed that the average time to sell a used car has increased slightly to 45.5 days. This is up only one day compared with the previous month.

Mr Voortman said this was likely a product of the improving supply situation which is also driving a reduction in retained values across all segments.

“Vehicles with the strongest retained values are largely sought after and reliable Japanese makes in both the passenger car and SUV segments as well as in the 2-4  year and 5-7 year categories,” he said.

The report said that overall retained values continue on a gradual decline with passenger vehicles holding their value best in the 2-4 year age bracket (84.1 per cent) as well as for the older 5-7 year category (69.8 per cent). 

It also shows that the Ford Ranger has built on its impressive lead as Australia’s top selling used vehicle and is close to breaching the 6000 monthly sales mark. 

The Toyota Hilux is second, well ahead of the rest of the pack which includes four utes in the top 10.

The AIR report for May shows that  296,542 vehicles are listed for sale, an increase of 7.2 per cent compared to the previous  month. 

The listings grew in every state and territory with South Australia experiencing the highest increase (up 8.5 per cent) and Tasmania being the lowest at 2.0 per cent.

May saw 191,625 used cars sold, an increase of 4.4 per cent from the previous month, with sales up in every state and territory led by Queensland and the ACT with the biggest monthly increase in sales of 7.3 per cent.

The AIR report for May also showed that petrol and diesel vehicles dominate the used car market, but that there has been strong  growth in lower emissions vehicles such as hybrids, EVs and PHEVs.

By Neil Dowling

AdTorque Edge