The used-car market is tightening, with July figures showing demand is high but the number of vehicles being put up for sale is dropping off.
More people are holding onto their cars instead of selling them, or shifting them privately when they do, as the used vehicle market tightens – the latest monthly data shows.
According to the Australian Automotive Dealers Association’s (AADA) monthly report, the number of used cars sold in July was 214,588 – up almost 12 per cent – but the number of vehicles being listed for sale dropped by nearly six per cent to 285,133.
Buyers are now turning to the used car market to find a good deal on their next vehicle, but at the same time fewer people are listing their current ones for sale – as values finally start to even out after years of higher prices and unprecedented demand as a result of the COVID-19 pandemic and it’s impact on new vehicle supply chains.
“With the commencement of the new financial year, buyers have flocked to the used car market taking advantage of better supply and lower prices as they make an effort to escape the rising cost-of-living pressures,” said AADA CEO James Voortman.
All of Australia’s states and territories experienced a drop in the number of used car listings in July except for Tasmania – which itself was only 0.3 per cent up.
Conversely, the Northern Territory experienced a fall in demand, down almost 16 per cent.
Good deals were quick to be snapped up too, with the average number of days it took for a car to sell being 43.6 – the lowest it has been in the last 12 months – thanks to retained values continuing to decline.
In fact, every category saw values drop last month, according to the report.
According to automotive insights firm AutoGrab, which helps compile the report, there has been a trend growing throughout 2024 towards more vehicles being sold privately rather than through second-hand car dealerships.
“One of the trends we have seem emerge from the start of the year is an increase in the proportion of cars being listed privately with a subsequent reduction in dealer listings,” said AutoGrab Chief Commercial Officer Saxon Odgers.
“Vehicles sold by dealers have remained around the 40 per cent mark suggesting they are pricing vehicles to sell.”
Overall, small vehicles are holding their value the best, with a 2-4 year-old Toyota Corolla or Toyota Yaris selling for 97.6 per cent of its original price compared to 96.7 per cent if between 5-7 years-old.
Meanwhile, the Suzuki Jimny continues its retain its value well, holding the top spot in both age groups of 115.6 per cent and 115.8 per cent respectively.
Australia’s top-selling used car remains the Ford Ranger ute, which came second in July’s new-car sales figures behind the Toyota RAV4 SUV, followed by another ute – the Toyota HiLux.
Electric vehicles experienced the most significant decline in July, with the number of listings down 16 per cent even though demand was up 12 per cent – suggesting people are holding onto them longer to try and get more money out of them.
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