Sunday 8 November 2026 Industry news by email, Tuesday and Thursday: sign up
Advertisement
News / Industry News Industry News

Used car sales dip as residual values continue decline

Robert Barry · 0 comments

The Australian Automotive Dealer Association (AADA), in partnership with AutoGrab, have released the July 2025 Automotive Insights Report (AIR), offering national reporting of used car sales covering both dealer and private transactions. 

This all-channel view helps industry and policy-makers understand real demand, track emerging trends, and make better-informed decisions.

The results from the July AIR shows a slight slowdown in used vehicle sales activity following June’s end-of-financial-year peak, alongside continued softening in residual values across most segments.

Advertisement

Key insights from July include:

• Sales ease after EOFY surge: National used car sales fell to 206,216 in July, down 2.8% month-on-month. WA, TAS, ACT and NT recorded modest increases, while all other states saw declines.

• Dealer inventory remains strong: Dealers accounted for 47.5% of sales and 55.5% of listings. Total active listings rose 2.9% to 339,742 nationally, the highest level so far in 2025.

• Hybrid and EV sales slow: Hybrid sales fell 8.5% month-on-month, while EVs dropped 20.3%. However, hybrid listings increased 13.6% and EV listings rose 4.9%, indicating ongoing supply growth in these segments.

• Days to sell dropped: Average days to sell across all used vehicles fell to 44.6 days in July, down from 47.0 in June, indicating a quicker turnover for vehicles that matched buyer demand.

“July often sees a cooling in sales activity after EOFY, so these results are in line with seasonal patterns,” AADA chief executive James Voortman says.

“Stock levels are building, which is positive for consumer choice, but the ongoing softening in retained values is something dealers will be factoring into pricing and margins,” he said.

“For consumers, the easing in residual values means there’s more opportunity to secure a better deal on a used vehicle than we’ve seen in recent years. With more stock on the market and prices softening across most segments, buyers have greater bargaining power and more choice to find the right car at the right price.” Voortman says.

View the full July 2025 AIR here.

Robert Barry

Robert Barry has been reporting on the Australasian automotive and transport sector since June 2003. A member of the New Zealand Motoring Writers Guild since 2005, Robert has also previously held the positions of secretary, vice-president and president. His work has appeared in newspapers, magazines, and on the web. He holds a Class 2 and a Class 4 heavy transport licence and knows his way around a manual transmission.

All articles

Join the conversation