USED car supply continued to outpace demand, with October sales data showing sales fell in the month while listings have grown.

Data from the Australian Automotive Dealer Association (AADA) and AutoGrab – Automotive Insight Report (AIR) for October showed used-car sales dropped by 3.2 per cent to 202,355 compared to last month. 

Meanwhile, used car listings have grown by 1 percentage point to 317,861, indicating a buyers market as used-car supply continues to outpace demand.

AADA CEO James Voortman said: “The average days to sell has increased from 46.4 days last month to 49 days in October, the highest it has been since December last year.”

“When it comes to fuel types, petrol and diesel cars still account for almost 95 per cent of all sales. “However, consumers are gradually turning towards more fuel-efficient options with a greater variety and more affordable options now available.”

Mr Voortman said sales of conventional petrol and diesel vehicles have dropped by 4.5 per cent and 2.3 per cent respectively while hybrids are still the top pick for buyers, with EVs close behind – both seeing strong sales jumps of 27.1 per cent and 22.3 per cent.

“As is to be expected in an oversupplied market, retained values remain on a downward trajectory with every vehicle segment across every age category experiencing a drop in value for the month,” he said.

“Retained values of used EVs in the 1-3 year old category have declined while the older models appear to hold their value better.”

Around the nation, Victoria was the only state to see a jump in sales – by a mere 0.2 percentage points to 49,463 units – while the Northern Territory was the only state to report a significant decline in sales of used EVs.

Small vehicles in the passenger segment maintained their lead in strongest value retention, with the Kia Picanto – replacing the Audi RS3 from last month – at 95.6 per cent in the 2-4 category. 

The Toyota Yaris remains unbeatable in the 5-7 year old category at 95.4 per cent. In the SUV category, the Suzuki Jimny continues to lead in both the 2-4 year and 5-7 year old category at 113.4 per cent and 114.0 per cent respectively.

Given the interest in EVs, the October AIR has provided a snapshot of Australia’s used EV market which is reflected in retained values well below average.

James Voortman

Mr Voortman said that average days to sell used EVs has climbed to 67.3 days.

He said this was “no surpise given the significant oversupply of used EVs.”

“With Trump’s presidential win and further anticipated rise in tariffs on Chinese vehicles, we’re seeing more Chinese-made cars – especially EVs – heading for Australia,” he said.

“This is pushing car makers to offer steeper discounts on new cars, making it difficult for used-car sellers to move stock.

“The MG4 EV was by far and away the best selling used EV in October, recording sales growth of almost 85 per cent on the previous month and selling double the units of its next closest competitor.”

The best-selling vehicle in October was the Ford Ranger followed by the Toyota Hilux.