Used car inventory surging according to mid-year industry report

The Australian Automotive Dealer Association (AADA) and AutoGrab have released the Mid-2025 Automotive Insights Report (AIR), providing insightful data about the  Australian used car market in the first half of the year.

Used car inventory is surging, with 1,589,491 vehicles listed for sale in the first six months of 2025 which represents a more than 30% increase compared to the same period in 2024.

This uplift in supply is matched by stable demand, with 1,133,990 used cars sold so far this year, a slight increase on 2024. Notably, the market is experiencing a continued shift back toward dealership sales, with dealer transactions now representing 46.7% of total sales, up from 36.5% last year.

“After a year of constrained supply and strong retained values, we’re seeing greater balance return to the used car market,” AADA chief executive James Voortman says.

“The mix of rising stock levels, stable demand and more stable pricing is creating better conditions for consumers and dealers alike,” he says.

Low emission vehicle adoption continues to gain momentum. Battery electric vehicle (BEV) sales nearly doubled year-on-year, rising 92%, while plug-in hybrid sales grew by 96%. Hybrids also performed strongly, up 42% on the same period last year.

“The growing inventory surplus is likely to place downward pressure on prices and could result in extended selling times during the second half of 2025. The surge in supply is primarily driven by passenger vehicles and SUVs. While SUVs continue to underpin sales growth and Utes are stable, demand for passenger vehicles has shown a noticeable decline,” AutoGrab chief commercial officer  Saxon Odgers says.

“The other standout trend in 2025 is the acceleration of electrified vehicle sales in the used market. While we are coming off a low base, used EV stock is growing, and are becoming far more visible and accessible to buyers,” he says.

Among brands, Toyota remains the market leader for used car sales, though its market share slipped slightly to 15.6% as other brands gained ground. A number of manufacturers have seen significant growth in their sales figures, with GWM, Kia, and MG the headliners.

The Ford Ranger maintained its position as the top-selling used model, with 43,030 units sold, followed by the Toyota Hilux and Toyota Corolla.

Other highlights from the 2025 mid-year AIR include:

• BEVs now account for 1.1% of all used car sales, up from 0.8% last year.
• Private sales dropped significantly, now making up 53.3% of all transactions (down from 63.5%).
• Retained values are lower in 2025 compared to last year, but the rate of decline month-to-month is more gradual, indicating a more stable market.
• The average number of days to sell a used vehicle remained steady for dealers, though private sellers are taking longer to sell compared to the same period in 2024.