MORE used cars hit the market in January, reversing months of decline. However, despite more stock, the latest used-car report from the AADA and AutoGrab shows consumer demand is weak.

The January 2025 edition of the Automotive Insight Report (AIR) highlights a shift in the Australian used car market – with supply increasing by 3.4 per cent to 333,386 listings – but total sales for the month were down by 5.9 per cent.

AIR also shows weakening EV demand (sales down 7.9 per cent) and rising sales for PHEVs, with PHEVs being the only vehicle powertrain type to gain sales (up 3.6 per cent) in January.

Buyer interest in PHEVs comes at the expense of EVs (battery-electric vehicles). PHEVs also nibbled into the normally buoyant hybrid sector (sales of used hybrids down a modest 1.6 per cent in January).

This could relate to the slowing of hybrid supply given the previous months of high sales, and/or the availability of new hybrid models on the new-car market.

AADA CEO James Voortman said the EV segment experienced weakening demand with total EV sales down by 7.9 per cent (to 171,007 units).

James Voortman

“Listing-to-sale ratios also remain the highest among all vehicle categories,” he said. 

“This reflects the ongoing impact of new vehicle oversupply, which is putting downward pressure on used EV prices.”

Mr Voortman said that the increase in used-car listings, coupled with declining sales, suggests that the market continues to favour buyers.

“Sellers are facing longer wait times to move stock, with average days to sell holding at 48.5,” he said.

“This trend may persist as the growing availability of new vehicles continues to impact the used car sector.”
He also notes that dealer contribution to both sales and listings is at its highest level in recent history.

AIR shows retained values have remained under pressure with most vehicle segments showing declines. 

“However, retained values for light commercial vehicles saw slight increases in some age categories, continuing to buck the trend,” Mr Voortman said.
AIR showed that in the retained value rankings, the Ford Mustang held the highest value among passenger vehicles (in the 2-4 year category), while the Suzuki Jimny continued a 15-month hold on the top spot in the SUV category. 

The top five passenger cars with the highest retained values were: Ford Mustang – 100.8 per cent; Toyota Corolla – 96.6 per cent; Kia Picanto – 96.2 per cent; Toyota Yaris – 95.6 per cent; and Subaru Impreza – 94.3 per cent.

The top five SUVs for retained value were: Suzuki Jimny – 108.0 per cent; Toyota Corolla Cross – 106.6 per cent; Toyota Yaris Cross – 102.4 per cent; Toyota Land Cruiser – 101.8 per cent; and Porsche Macan – 101.2 per cent.

Japanese manufacturers dominated the top sellers list, with eight of the top 10 models originating from Japan, and Toyota alone accounting for five of the top 10.

Toyota further cemented its market strength, holding seven of the Top-10 SUV retained value rankings.

Around the country, sales declined across all states, with the Northern Territory (down 10.1 per cent compared with the previous month) and Victoria (down 9.9 per cent) experiencing the biggest drops.