AUSTRALIA’S used-vehicle market recorded its weakest month of the first half of 2026 as buyers were rewarded with greater choice, increased negotiating power, and falling prices.

New data from the Australian Automotive Dealer Association (AADA) and AutoGrab shows 1,300,018 used vehicles were sold nationally during the first six months of the year, down 6.6 per cent compared with the same period in 2025.

Key Statistics: Australian Use Car Market, H1 2026 vs H1 2025

While overall sales declined, supply continued to build throughout the half, resulting in slower selling times and increased discounting as sellers competed more aggressively for buyers.

Although January still recorded year-on-year growth, the rate of decline widened progressively throughout the first half rather than stabilising.

By June, sales were down 16.2 per cent on the same month in 2025, representing the largest monthly decline of the year to date.

In their report covering the first six months of 2026, AADA and AutoGrab said the balance between supply and demand shifted noticeably as listed stock increased.

By June, more than half of all one-to-five-year-old used vehicles sold had their asking price reduced before sale, while the average discount widened to 3.7 per cent – the largest discount recorded this year.

Petrol and diesel vehicles experienced the greatest increase in discounting, while hybrids remained the most price-resilient powertrain throughout the first half.

The report noted that while the broader used vehicle market slowed, demand for electrified vehicles continued to strengthen, with EVs, PHEVs and hybrids accounting for 7.1 per cent of all used vehicle sales.

Used EV sales increased 54.6 per cent year-on-year during the first half, while PHEV sales rose 468.4 per cent from a relatively small base.

EVs also sold significantly faster as the year progressed, with average days to sell falling from more than 60 days in January to fewer than 40 days by June.

“The used vehicle market has become increasingly competitive during the first half of 2026,” said AADA chief executive James Voortman.

James Voortman

“Buyers have more choice than they’ve had for some time, and dealers are responding to that environment through more competitive pricing and discounting.

“While overall sales have softened compared with last year, it’s encouraging to see continued growth in used EVs and PHEVs as more Australians consider lower-emission vehicles in the second-hand market.”

Saxon Odgers

AutoGrab chief commercial officer Saxon Odgers said, “Year-on-year sales declines widened throughout the first half, with June recording the biggest decline of the year to date”.

“Every state and territory recorded fewer used vehicle sales during the first half of 2026 than in the corresponding period of 2025,” he added.

“The decline was concentrated in passenger cars, with SUVs and utes recording comparatively smaller falls.”

Mr Odgers said that by June, more than half of all one-to-five-year-old vehicles were selling below their asking price, with the average discount widening to 3.7 per cent.

“In that environment, accurate and current pricing is the difference between a car that sells and one that sits,” he continued.

“Petrol and diesel vehicles are carrying most of the pressure, while hybrids have held their value best.

“Electrified vehicles are the clear exception. Used EV sales rose 54.6 per cent and sold faster as the year progressed, with average days to sell falling from more than 60 days in January to fewer than 40 days by June.

“The volume growth is now well established in the Australian market.”