AUSTRALIA’S used-vehicle market rebounded strongly in July, with sales climbing 11.8 per cent month-on-month to 240,311 units as activity recovered from an end-of-financial-year demonstrator-led dip in June.

However, new data from the Australian Automotive Dealer Association (AADA) and AutoGrab shows private sellers are increasing their share of the market, with volumes growing at almost three times the rate recorded by dealers during July.

Dealer used-vehicle sales, excluding demonstrators, increased 9.1 per cent from 82,360 units in June to 89,857 in July, while private sales jumped 26.2 per cent from 110,209 to 139,036 units over the same period. Private sellers consequently accounted for almost 58 per cent of July used-vehicle sales, leaving dealers with a 42.1 per cent share.

The disparity was also evident among near-new vehicles, where dealers continue to dominate, but lost ground during the month.

Dealer share of the near-new used market slipped from 71.8 per cent in June to 70.1 per cent in July, with private sellers recording stronger growth across every vehicle age category.

The two channels nevertheless remain structurally different, with 42 per cent of dealer volume in July comprising vehicles aged up to four years compared with just 10 per cent for private sellers.

 Conversely, 61 per cent of private sales involved vehicles aged 11 years or older, compared with 24 per cent of dealer volume.

The AADA and AutoGrab data also indicates June’s 2.9 per cent month-on-month decline in total used-vehicle sales was largely attributable to the annual dealer demonstrator clearance ahead of the June 30 financial year end rather than a weakening in underlying demand.

Demonstrator sales increased from 17,547 units in May to 22,427 in June before falling 49 per cent to 11,418 units in July. 

Genuine dealer used-vehicle sales excluding demonstrators were comparatively stable during the period, easing marginally from 82,839 units in May to 82,360 in June before increasing to 89,857 units last month.

James Voortman

 AADA chief executive officer James Voortman said the July result supported the view that June’s decline was seasonal. 

“The July rebound shows the June decline was largely a seasonal effect driven by end-of-financial-year demonstrator clearances rather than any softening in underlying demand,” he said.

“It’s encouraging to see dealers increase used vehicle sales during July. However, private sellers grew at a much faster rate, highlighting the competitive conditions across the used vehicle market.

“The data also shows dealers are continuing to achieve similar retained values to private sellers while discounting less often. That suggests slower stock turnover is being influenced by broader market dynamics rather than pricing alone.”

Indeed, the July figures highlight an emerging challenge for dealerships, with dealer-held vehicles taking considerably longer to sell than comparable privately advertised stock. Dealers took approximately 22 days longer than private sellers to move equivalent one- to five-year-old vehicles, a gap that remained largely unchanged throughout May, June, and July.

The difference comes despite dealers and private sellers achieving almost identical retained values during July – 80.1 per cent and 80.2 per cent respectively – and dealers discounting both less frequently and less aggressively.

Some 49.0 per cent of dealer vehicles were discounted during July compared with 49.6 per cent of private listings. 

Average days to sell across the overall market increased to 52.1 days in July, the highest level recorded so far this year.

At the same time, supply expanded slightly faster than sales, with 437,855 vehicles advertised during July – a 13 per cent increase from June – against the 11.8 per cent rise in transactions.

AutoGrab chief commercial officer Saxon Odgers said the figures illustrated a market experiencing strong activity while simultaneously taking longer to clear available stock. 

“Supply grew a little faster than demand in July. There were 437,855 vehicles advertised for sale, up 13 per cent on June, against 240,311 sold, up 11.8 per cent,” he said. 

“The average vehicle took 52.1 days to sell, the longest of the year so far. A market can be busy and slow at the same time, and in July it was both.”

Saxon Odgers

 Mr Odgers said private sellers had now maintained the larger share of used-vehicle transactions for three consecutive months.

“The private channel is the larger half of this market. Dealers accounted for 42.1 per cent of July sales; private sellers moved 139,036 vehicles, close to 58 per cent of the total,” he added.

“Private sellers have held the larger share in each of the past three months, and that share widened again in July.” 

Of particular concern for dealers is the persistence of the difference in stock turnover between the two channels. 

“The days-to-sell gap barely moved across the quarter,” continued Mr Odgers. “Dealers took around 22 more days than private sellers to sell equivalent one- to five-year-old stock in May, again in June and again in July. 

“The consistency is the finding here, not the size of the gap. Three months at the same spread is a settled pattern rather than a one-month result.”

The figures suggest the Australian used-vehicle market remains active but increasingly competitive, with rising supply, longer selling periods, and stronger private participation placing additional pressure on dealers to improve stock turnover.

While dealerships retain a substantial advantage in the younger used-vehicle market, July’s results show private sellers are continuing to gain ground – and moving comparable stock considerably faster.