THE 2024 year in review shows a used-car market that opened with optimism and strength but by the third quarter, fizzled to leave shrinking margins and a significant extension of selling times.

The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, has released the ‘2024 Year That Was’ Automotive Insights Report (AIR) that points to a weakened 2024 flowing into 2025.

In the review of 2024, the report describes a lead into a “more measured outlook” for 2025.

The AIR said total used car sales in 2024 reached 2,324,805 units, a 12.1 per cent increase compared to 2023.Sales peaked in July, with sustained demand throughout much of the year before easing towards the end. 

Listings, on the other hand, peaked in November, highlighting a softening in consumer demand relative to supply.

“This divergence suggests an over-supply trend, where vehicles are staying on the market longer as consumer demand slows,” AIR said.

“Compared with 2023, where supply and demand moved more in sync, 2024’s trend points to shifting market dynamics impacting buyer behaviour.”

AADA CEO James Voortman said the 2024 results “highlight a dynamic used car market that showed strong growth through much of the year before slowing in the final quarter.”

“While demand remains healthy, we are seeing signs of cooling, particularly in the latter months, as affordability pressures and economic factors come into play,” he said.

The AIR said profit margins shrank from mid-2024 and almost half (49.6 per cent) of one-year-old cars sold for under their initial listing price.

This trend was repeated across all age groups as sellers adjusted to the changing market conditions, it said.

James Voortman

“Additionally, the time taken to sell increased by about 15 per cent for both private and dealer listings from August to November, further highlighting a slowdown in demand,” the report said.

Used EVs also “plunged” in value with the report stating that it was driven by advancement in battery technology, aggressive OEM discounting and increased competition from Chinese manufacturers.

“As a result, one-year-old EVs lost 25 per cent of their original value with selling times ranging from 54.7 to 87.3 days in 2024,” it said.

“In contrast, used hybrids remained a consumer favourite with equivalent one-year-old hybrids retaining 98.3 per cent of their original value.

“However, hybrid resale values also trended downward, and days to sell rose, reflecting the growing supply of new hybrid vehicles.”

Toyota remained the top-selling brand, with 390,298 used vehicles sold, followed by Mazda and Ford. Among individual models, the Ford Ranger led with 82,448 sales, ahead of the Toyota Hilux and Toyota Corolla.

“Profit margins tightened, and days to sell increased by 15 per cent for listings between August and October, further indicating a slowdown in demand,” Mr Voortman said.

“As we head further into 2025, we anticipate a more subdued market, with sales likely to stabilise rather than grow at the rapid pace we saw earlier in 2024.

“This is good news for those in the market for a used car, with opportunities for a good deal.”