Cooling Trends Emerge in Australia's Used Car Market

According to the 2024 Year That Was Automotive Insights Report (AIR), total used car sales reached 2,324,805 units, marking a 12.1% increase compared to 2023. Sales peaked in July, with sustained demand throughout much of the year before easing towards the end. Notably, listings peaked in November, highlighting a softening in consumer demand relative to supply.

James Voortman, CEO of the Australian Automotive Dealer Association (AADA), commented on these findings, stating, "While demand remains healthy, we are seeing signs of cooling, particularly in the latter months, as affordability pressures and economic factors come into play." This observation underscores the impact of broader economic conditions on consumer purchasing decisions in the automotive sector.

Several factors may have contributed to this slowdown. Rising interest rates and inflationary pressures have affected consumers' disposable incomes, making large purchases like vehicles more challenging. Additionally, the increasing availability of new cars, as supply chain issues ease, has provided consumers with more options, potentially diverting attention away from the used car market.

Despite the slowdown, certain segments within the used car market have continued to perform well. Hybrid vehicle sales, for instance, have seen a notable increase. In October 2025, used hybrid sales more than doubled compared to the same month in 2023, rising from 6,868 to 14,784 vehicles. This trend reflects a growing consumer preference for fuel-efficient and environmentally friendly vehicles.

Looking ahead, industry experts anticipate a more subdued market in 2025, with sales likely to stabilize rather than grow at the rapid pace observed earlier in 2024. This stabilization presents opportunities for consumers, as increased supply and moderated demand may lead to more favorable pricing and negotiation conditions in the used car market.

For prospective buyers, this evolving market landscape suggests the importance of thorough research and timing in making purchasing decisions. Engaging with reputable dealers, understanding the value of desired vehicles, and staying informed about market trends can enhance the car buying experience and ensure better outcomes.