Used car sales rebound in January as listings tighten

Australia’s used car market has started 2026 on a stronger footing, with sales lifting sharply in January while vehicle listings continued to tighten, according to the latest Automotive Insights Report.

The January 2026 report, released by the Australian Automotive Dealer Association in partnership with AutoGrab, shows 188,421 used vehicles were sold during the month, up 9.7% from December.

On the supply side, active used car listings fell 5.4% month on month to 291,666 vehicles, pointing to tightening stock levels across the market.

Despite the lift in sales, vehicles are taking longer to sell than at the spring low point, suggesting buyers remain cautious and conditions are more balanced than in recent peak years.

AADA chief executive James Voortman says the January results reflect a return to normal post-Christmas activity rather than a surge in demand.

“A solid lift in sales to start the year suggests buyers have returned to the market after the typical December slowdown, but conditions remain more balanced than the highs we saw in previous years,” Voortman says.

“Even with stronger volumes, days to sell have continued trending higher since the lows recorded in September, which tells us consumers are taking their time and shopping carefully.”

Average days to sell rose to 49.4 days in January, continuing a gradual upward trend since September.

Sales rose across every state and territory in January, led by strong gains in Western Australia, South Australia and Queensland. The Northern Territory recorded the largest percentage increase, albeit from a low base.

SUVs continued to dominate demand, accounting for 85,491 sales, up 14.5% month on month, while passenger cars lifted 3.2%. Sales of used utes rose 11.4%, reflecting ongoing demand from trades and regional buyers.

Alternative powertrains again stood out. Hybrid vehicle sales rose 15.3% in January, while used EV sales climbed 20.1% to 2889 units. At the same time, EV listings jumped 30.5%, suggesting improved availability is helping to unlock demand in the used market.

Tesla remained the dominant brand in the used EV segment, with the Model 3 and Model Y the two top-selling electric vehicles nationally, although several newer models recorded rapid growth from a low base, including the MG4, BMW iX2 and Polestar 2.

The Ford Ranger retained its position as Australia’s top-selling used vehicle overall, ahead of the Toyota HiLux and Toyota Corolla. Strong growth was also recorded by the Toyota RAV4 and LandCruiser Prado.

The report shows retained values remained resilient for newer vehicles, particularly SUVs and light commercial vehicles, although EV retained values softened in January after strong gains late last year.

The Automotive Insights Report provides a monthly snapshot of national used car sales, listings and market trends, drawing on dealership and wholesale data from across Australia.