AUSTRALIAN sales of used vehicles by volume have softened. But the number of cars on offer has jumped and the sales period is getting shorter.

Monthly data from the used car market published by the Australian Automotive Dealer Association (AADA) and AutoGrab shows used-car listings lifted 4.9 per cent to 299,147 while sales declined by 3.6 per cent to 206,804 vehicles.

The AADA-AutoGrab Automotive Insight Report (AIR) for August said that despite the increase in supply, the average days to sell have continued to decrease. It was now 42.7 days, the lowest it has been over the past 12 months.

The report said that this indicated sellers were motivated and buyers are ready to snap up a good deal.
AADA CEO James Voortman said that in line with the new-car sales trends, demand has decreased for used cars. All states, except South Australia and Tasmania, recorded a drop in sales.

“Western Australia saw the biggest increase in used car supply, with listings up by 15.1 per cent,” he said.

“In contrast, the Australian Capital Territory and Northern Territory were the only regions with a tightening market, recording significant supply drops of 15.4 per cent and 14.9 per cent respectively.”

Mr Voortman said the supply of used cars increased across all vehicle categories, with SUVs and LCVs showing the highest growth, rising by 6.8 per cent and 10.2 per cent respectively.

James Voortman

“This surge could partially explain the greater decline in retained values of SUVs and LCV utes relative to passenger counterparts, leading sellers to keep their vehicles for shorter periods,” he said.

Mr Voortman also noted some correlations to the new-car market in terms of popularity of hybrid vehicles. He said hybrids experienced an increase in sales, while petrol, diesel and electric all experienced a drop in sales.

When compared with July, the used EV market is now facing an oversupply and sales of EVs have experienced the largest drop among all fuel types; down 8.3 per cent to 1637 units.

“This may result in more competitive pricing, shaping buyer preferences as disposable incomes erode,” he said.
The AIR data also showed that retained values continued to decline with every vehicle segment across every age category experiencing a drop in value for the month.

Overall, small vehicles and performance vehicles in the passenger segment continued to hold their value the best, with the Toyota 86 replacing the Toyota Corolla for the top position at 98.4 per cent in the 2-4 year old category and the Toyota Yaris maintaining the lead at 94.8 per cent in the 5-7 year old category. 

In the SUV category, the Suzuki Jimny continues to dominate, holding the top spot in both the 2-4 (114.0 per cent) and 5-7 year old (116.4 per cent) SUV categories.The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux. 

In August, 206,804 used vehicles were sold, a fall of 3.6 per cent compared to the previous month.

The month also saw 299,147 used cars listed for sale, an increase of 4.9 per cent from the previous month.

Footnote: The data was released on the same day that Toyota Australia launched its latest Camry sedan, which is only available as a hybrid model.