The Australian used car market concluded 2025 with its weakest monthly performance since January, as December sales fell to 171,837 vehicles amid declining inventory and longer selling times.
The December result represented an 11.1% decline from November’s 193,260 sales, according to the latest Automotive Insights Report from the Australian Automotive Dealer Association (AADA) and AutoGrab.
Total active listings also contracted, falling 1.7% to 308,315 vehicles – the lowest inventory level recorded throughout 2025 and down from August 2024 levels.
“December capped off a year where momentum in the used car market steadily eased, with listings falling to their lowest point of 2025,” AADA chief executive James Voortman says.
“Longer days to sell are now a clear trend, reflecting more price sensitivity among buyers and a more balanced market environment compared to the heightened conditions of recent years.”
State-by-state decline
The market softening was evident across all states, with Queensland recording the steepest sales decline at 14.8% to 38,170 vehicles, followed by the Northern Territory down 14.6% to 470 vehicles.
New South Wales, the largest market, saw sales fall 12.7% to 49,630 vehicles, while Victoria dropped 7.8% to 43,300 vehicles. Western Australia declined 8.5% to 23,500 vehicles.
Segment performance mixed
SUVs remained the dominant segment with 74,640 sales, though this represented a 10.9% monthly decline. Passenger cars fell 10.8% to 62,180 sales, while light commercial vehicles including utes dropped 11.7% to 30,410 units.
The ute segment continued to lead individual model sales, with the Ford Ranger topping the charts at 5,050 sales despite an 10.8% decline. The Toyota Hilux followed with 3,160 sales, down 23.6% from November.
Alternative powertrains advance
Despite the broader market decline, alternative fuel vehicles showed resilience in market share terms. Hybrid vehicle listings increased 4.4% to 28,340 units, while plug-in hybrid listings grew despite representing a smaller volume.
Electric vehicle sales totalled 2,400 units in December, down 13.6% from November, but EVs continued to expand their presence in the used market. Tesla Model 3 led EV sales with 420 units, followed by Tesla Model Y with 220 units.
Selling times extend
Average days to sell increased to 47.0 days in December, marking the third consecutive monthly rise and up from 42.0 days recorded in November. The trend reflects growing price sensitivity among buyers as market conditions normalise.
Retained values continued their gradual decline across most segments, with passenger cars aged 2-4 years showing average retained values of 77.8% compared to 78.8% in November.
The dealer share of total sales remained steady at 50.5%, with private sales accounting for 49.5% of transactions.
The AADA and AutoGrab will release their comprehensive ‘2025 Year That Was’ Automotive Insights Report in coming weeks, providing a full-year analysis of used car market trends.
Source: Australian Automotive Dealer Association (AADA) December 2025 Automotive Insights Report, developed in collaboration with AutoGrab.
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