Understanding the Australian Used Car Market: December 2024 Insights

Top Performers in Residual Value

The Suzuki Jimny stands out as the used car with the best residual value in Australia. In the SUV category, it retains an impressive 110.7% of its value for vehicles aged 2–4 years. However, for SUVs aged 5–7 years, the Toyota Landcruiser takes the lead with a retained value of 87.9%.

In the passenger car segment, the Ford Mustang leads in the 2–4-year-old category, maintaining 97.0% of its value. For vehicles in the 5–7-year-old range, the Toyota Yaris shines with a retained value of 97.5%.

Australia’s Best-Selling Used Vehicles

The Ford Ranger continues its reign as the most popular used vehicle in Australia, followed by the Toyota Hilux. These workhorses remain sought-after thanks to their versatility and durability.

Electric Vehicle Trends

The MG4 has reclaimed its position as Australia’s most popular used electric vehicle (EV). Despite this, the used EV market faces challenges. Oversupply of new EVs has led to a decline in retained values, encouraging shorter ownership cycles for sellers.

Interestingly, demand for EVs has risen in Western Australia and South Australia, with sales up by 19.8% and 10.7%, respectively. However, the average days to sell a used EV have increased, returning to levels seen in August.

Market Dynamics: Supply and Demand

December saw a 3.8% drop in the supply of used cars, with listings falling to 322,532. Despite this reduction, the market remains buyer-friendly, as sales dipped by 8.1% to 181,724. This environment offers buyers an excellent opportunity to negotiate favorable deals during the festive season.

Western Australia and the Northern Territory were the only regions where the number of cars listed for sale increased. However, retained values across almost every vehicle segment and age category continued their downward trend, with exceptions for light commercial vehicles (LCVs) in the 2–5-year range.

A Glimpse into 2025

The average time to sell a used vehicle has climbed to 48.7 days, the highest since October. This indicates slower-moving stock and a challenging environment for sellers. The growing oversupply of new cars is likely to exert further pressure on the used car market, prolonging this trend into 2025.

What Does This Mean for Buyers and Sellers?

For buyers, the current market conditions represent an ideal time to find deals, particularly on EVs and other segments experiencing value drops. Sellers, on the other hand, may face longer wait times and need to adjust pricing expectations to move inventory.

The Australian used car market is evolving rapidly, influenced by the interplay of new car oversupply, regional demand shifts, and changing consumer preferences. As 2025 approaches, staying informed will be key to navigating these trends effectively.

Credit: AutoTalk.com.au