The latest edition of the Automotive Insight Report (AIR) reveals significant shifts in the used car market. December listings fell by 3.8% year-on-year to 322,532 units, following months of oversupply. At the same time, used car sales experienced a notable 8.1% decline, with just 181,724 units sold.
The average days to sell have risen to 48.7, the highest since October, indicating slower-moving stock. This trend is expected to persist into 2025, as the oversupply of new vehicles continues to impact the used car market.
Rod Camm, CEO of MTA Queensland, noted the strategic opportunities arising from the market slowdown. “Although the decline in used car sales signals a market adjustment, it also presents automotive businesses with the chance to offer competitive deals in a buyer-focused environment,” Camm explained. “With a larger inventory available, dealerships can add value for customers, especially as they look to move stock in a slower sales climate.”
The report also highlights a continued decline in retained vehicle values, with most segments and age categories showing decreases. The one exception is the light commercial vehicle (LCV) ute category, where vehicles aged between 2 and 5 years have seen a slight increase in value. Meanwhile, the oversupply of new vehicles is exerting downward pressure on used electric vehicle (EV) values, with many sellers opting to hold onto their EVs for shorter periods to minimize depreciation.
In the passenger car segment, the Ford Mustang remains a top performer, retaining 97.0% of its value in the 2-4 year age category. The Toyota Yaris leads the 5-7 year segment, holding 97.5% of its value. Among SUVs, the Suzuki Jimny stands out with an impressive 110.7% value retention in the 2-4 year range, while the Toyota Landcruiser leads the 5-7 year category with 87.9% value retention.
Looking ahead, the report suggests that while the used car market will continue to be affected by the oversupply of new vehicles, opportunities will remain for both consumers and dealers as the market evolves.
Source: Automotive Insight Report | AADA
15 January 2025