Dealer demo stock builds as near-new EV holdings jump 69%

Dealers are holding a growing pile of demonstrator and near-new vehicles, with near-new EV stock up 68.8% since July, according to the latest used vehicle data from the Australian Automotive Dealer Association (AADA) and AutoGrab.

Dealer stock of demonstrator and near-new vehicles up to two years old rose in every month of the quarter, from about 65,730 in July to 73,708 in October. Dealers held 9,656 near-new EVs in October.

Demo vehicles up to a year old made up 7.1% of used sales in October but 13.9% of listings. Demo listings rose to 57,262 from 53,160 in July, equal to 3.1 months of supply at October’s sales rate, against 1.6 months across the wider used market.

Retained values continued to fall. AutoGrab says values dropped in 16 of the 18 segment and model-year groups it tracks, with 2025 model-year vehicles recording the largest falls.

AADA deputy chief executive Brian Savage says the figures show headline new vehicle sales do not tell the full story.

“Dealers are operating in an increasingly competitive market, with more brands, ambitious sales targets and growing pressure to manage stock levels. These figures highlight why headline new vehicle sales numbers don’t necessarily tell the full story,” Savage says.

“Dealers are carrying significant amounts of stock, and when vehicles take longer to sell and lose value, it puts further pressure on already stretched businesses. With more brands entering the Australian market and operating costs continuing to rise, it’s increasingly important that stock levels and sales expectations reflect actual customer demand.”

Price to market

AutoGrab chief commercial officer Saxon Odgers says demo sales have risen 27% since July, but supply is still running well ahead.

“The average 2025 SUV went from 89.9 to 87.8% of its original RRP in a single month, which is about $1,050 on a $50,000 vehicle,” Odgers says.

“With demos sitting at almost double the supply of the wider used market and retained values falling month on month, dealers need to price every demo and used car to the market from the day it’s listed, because holding out for an inflated retail price only slows stock turn and turns today’s demo into tomorrow’s aged-stock problem.”

Used EV sales rose 14% to 6,175 in October, led by dealers, whose EV sales were up 19.4%. Dealers accounted for 78.9% of used EV sales.

“Dealer EV sales are growing, but used EV listings grew faster than sales, so EV sales per 100 listings fell from 50 to 45,” Odgers says.

Used market grows

Across the used market, sales rose 1.2% on September to 261,166, the fourth consecutive monthly increase, driven mostly by private sellers and older vehicles. Listings rose 5.5% to 411,479.

Dealers accounted for 42.4% of used sales, unchanged on September, and average days to sell fell to 42.6 from September’s high for the year.

The AADA reported last week that the industry recorded its first negative quarterly profitability result since the global financial crisis in the September quarter.