Used car supply grew in January 2025, but sales declined

The January 2025 edition of the Automotive Insight Report (AIR) highlights a shift in the Australian used car market. Supply increased 3.4% to 333,386 listings, reversing the decline of the previous month. 

However, consumer demand remains subdued, with total sales dropping 5.9%.

“The increase in listings, coupled with declining sales, suggests that the market continues to favour buyers,” Australian Automotive Dealer Association chief executive James Voortman says. 

“Sellers are facing longer wait times to move stock, with average days to sell holding at 48.5. This trend may persist as the growing availability of new vehicles continues to impact the used car sector.

“Retained values remained under pressure, with most vehicle segments showing declines. However, retained values for light commercial vehicles saw slight increases in some age categories, continuing to buck the trend.

“The EV segment also experienced weakening demand, with total EV sales down by 7.9% and listing-to-sale ratios remaining the highest among all vehicle categories. This reflects the ongoing impact of new vehicle oversupply, which puts downward pressure on used EV prices,” Voortman says.

In retained value rankings, the Ford Mustang held the highest value among passenger vehicles (in the 2-4-year category). At the same time, the Suzuki Jimny continued its 15-month hold on the top spot in the SUV category. Toyota further cemented its market strength, holding seven of the top ten SUV retained value rankings.

Automotive Insight Report (AIR) January 2025 highlights:

• 171,007 used cars sold in January, a 5.9% decrease from the previous month.
• Dealer contribution to sales and listings is at its highest in recent history.
• Sales declined across all states, with NT (-10.1%) and VIC (-9.9%) experiencing the most significant drops.
• The average days to sell a used vehicle remained steady at 48.5 days.
• Passenger and SUV retained values declined across most model years, with LCV-Utes showing minor gains.
• The Ford Ranger remains Australia’s best-selling used car.
• Japanese manufacturers dominated the top sellers list, with 8 of the top 10 models originating from Japan, and Toyota alone accounting for 5 of the top 10.
• EV retained values continued to lag significantly behind other segments.

The full report can be viewed here