Market Reports, News ,

AVERAGE dealer used-vehicle selling prices across Australia fell slightly again in April 2024, with inventory growing at a faster pace than sales, according to new data from Cox Automotive Australia.

The company said in a statement: “Cox Automotive Australia Dealer Delisted Price Index for used and demonstrator cars finished April on 135.2, down 1.0 per cent month-over-month (MoM) and 7.1 per cent year-over-year (YoY).

“This means an average 35.2 per cent price increase per vehicle between the baseline of December 2019 and today, including inflation, volume-weighted and adjusted by MSRP. The Index peaked at 148.1 in August 2022, and has fallen 8.7 per cent since then.

“More used cars entered the dealer market in April than exited it, with market-wide available inventory in the Cox Automotive Australia database up 3.1 per cent over March and a healthy 24.2 per cent YoY. At the same time dealer used and demonstrator sales for April 2024 declined 0.4 per cent MoM and grew at a more modest 9.7 per cent YoY.

“The discrepancy between inventory growth (24.2 per cent YoY) and sales growth (9.7 per cent YoY) saw Market Days’ Supply of used vehicles climb from 62 days in February 2024, to 63 days in March, to 65 days in April. This sits below Cox Automotive’s benchmark figure of 70 days.

“Of all sold dealer used and demonstrator cars for the month, 38.8 per cent of them received a price cut between listing and sale, by an average of 6.8 per cent. This figure was 6.7 per cent in the previous month.

“As of May 1, the most listed vehicles in Cox Automotive Australia’s dealer database were the Ford Ranger (up 7.5 per cent MoM), Toyota HiLux (up 2.6 per cent MoM), Toyota Corolla (up 6.3 per cent MoM), Toyota RAV4 (up 7.0 per cent MoM), and Mitsubishi Triton (up 5.4 per cent MoM).

“Breaking down current dealer used vehicle inventories by segment, 47.5 per cent of listed vehicles are an SUV, 30.2 per cent a traditional passenger car such as a sedan or hatchback, 19.5 per cent are a pickup or ute, 2.5 per cent are vans or buses, and 0.5 per cent are BEV or PHEV – not a surprise given most EVs remain with their first owners.

“During April, the top-selling vehicles in Cox Automotive Australia’s dealer database were the Ford Ranger (down 1.7 per cent MoM), Toyota Corolla (up 5.4 per cent MoM), Toyota HiLux (up 1.0 per cent MoM), Toyota RAV4 (up 6.2 per cent MoM), and Hyundai i30 (down 3.9 per cent).

“Breaking down dealer used vehicle sales in April by segment, 47.5 per cent were SUVs, 31.3 per cent traditional passenger cars, 18.7 per cent pickups/utes, 1.8 per cent vans or buses, and 0.4 per cent BEV or PHEV.

“As has become a pattern, prices are comparatively inflated on second-hand passenger-segment cars, as well as older stock. For example, the overall Price Index of passenger cars is 146.3, meaning an average 46.4 per cent price increase for passenger-type used vehicles between December 2019 and today.

“By contrast the overall SUV Price Index is currently 126.8, the overall Ute Price Index is 134.2, and the overall Van Price Index is 136.7.

“From an age perspective, we consistently see vehicles in the older age brackets such as 5-7 years and 8-10 years retain more inflated Price Indexes than newer equivalents. This does not mean older cars are more expensive than newer cars, but rather says they are more inflated relative to their pre-COVID prices.

“In other words, their inflated retail prices are stickier and buffeted less by what’s impacting the market.

“We know that supply of newer hatchbacks and sedans is limited on account of their rapid sales contraction in the new market over the past few years during the SUV boom, causing shortages in the used sector as a knock-on effect and subsequently causing more price inflation.

“In a similar vein, older vehicles are in higher demand than younger used vehicles in more households due to inflation and interest rate pressures on reducing budgets.

“As the table below illustrates, passenger vehicles sold used under 2 years of age are on average retailing for 15.8 per cent more today than December 2019, whereas those aged 2-4 are selling for 36 per cent more than December 2019, and those aged 8-10 are selling for 71.3 per cent more today than pre-pandemic,” the statement said.

Top 5 sold vehicles (MoM) – April:

  1. Ford Ranger: -1.7 per cent
  2. Toyota Corolla: +5.4 per cent 
  3. Toyota HiLux: +1.0 per cent 
  4. Toyota RAV4: +6.2 per cent
  5. Hyundai i30: -3.9 per cent

Top 5 listed vehicles (MoM) – April:

  1. Ford Ranger: +7.5 per cent 
  2. Toyota HiLux: +2.6 per cent 
  3. Toyota Corolla: +6.3 per cent 
  4. Toyota RAV4: +7.0 per cent 
  5. Mitsubishi Triton: +5.4 per cent

By John Mellor

AdTorque Edge