The Australian used car market has stabilised after years of disruption, with dealers capturing a significantly larger share of transactions as consumer confidence in the channel grows.
National used car sales totalled 2.32 million vehicles in 2025, down just 0.37% compared to 2024, according to the Annual 2025 Automotive Insights Report released by the Australian Automotive Dealer Association (AADA) in partnership with AutoGrab.
The most notable shift was the growing dominance of dealer-led transactions, which accounted for 48.6% of the used car market in 2025, up sharply from 39.1% in 2024. This represents a significant rebalancing away from private sales, which fell to 51.4% of total transactions.
“The increase in dealer market share reflects growing consumer confidence in what purchasing through a dealer provides,” AADA chief executive James Voortman says.
“Dealers are playing a more prominent role as consumers seek greater certainty around pricing, vehicle quality and after-sales support in a more balanced market environment.”
Market conditions improved for both buyers and sellers throughout 2025, with less extreme movement in prices and stock availability compared to previous years of disruption.
Vehicle preferences continued to evolve, with SUVs further strengthening their dominance of the used car market while passenger vehicles continued to lose share. Electrified vehicles including hybrids, electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) also continued to grow their market presence.
AutoGrab chief operating officer Saxon Odgers says the market has moved beyond recent distortions into a more sustainable phase.
“The Annual 2025 Automotive Insights Report confirms the used car market has moved beyond the distortions of recent years and into a more stable, sustainable phase,” Odgers says.
“What we’re seeing now is a structurally healthier market, where disciplined pricing, better stock availability and data-led decision-making are once again central to dealer performance.”
He says supply chains have normalised and transparency has improved, providing dealers and original equipment manufacturers with clearer visibility on pricing, risk and inventory planning than at any point in the last five years.
The report shows hybrid vehicle sales increased 40.9% year-on-year, while battery electric vehicle sales grew 64.3% and plug-in hybrid sales rose 21.0%. However, these electrified segments still represent relatively small portions of the overall market.
Toyota maintained its position as the leading brand in the used car market with 15.6% market share, despite sales declining 7.7% to 360,300 vehicles. The Ford Ranger remained the top-selling used model with 92,197 sales, up 11.8% from the previous year.
The full Annual 2025 Automotive Insights Report is available at https://www.aada.asn.au/wp-content/uploads/2026/01/2025_Annual_AIR.pdf.
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