Australian Used Car Market Ends 2025 on a Softer Note

National used car sales fell to 171,837 vehicles in December, marking an 11.1% decrease from November. This represents the lowest monthly sales figure since January 2025, indicating a substantial cooling in the market.

In addition to declining sales, total active listings dropped by 1.7% to 308,315, the lowest level recorded in 2025. This reduction in listings suggests a decrease in supply, potentially due to sellers holding back in response to softened demand.

Vehicles are also taking longer to sell, with average days on the market increasing. This trend reflects more cautious consumer behavior and a shift towards deliberate purchasing decisions.

AADA CEO James Voortman commented on the findings, noting that December capped off a year where momentum in the used car market steadily eased. He highlighted that longer days to sell are now a clear trend, reflecting more price sensitivity among buyers and a more deliberate approach to purchasing decisions.

Several factors may have contributed to this market softening. Economic uncertainties, changes in consumer confidence, and seasonal variations often influence purchasing behavior. Additionally, the increasing availability and appeal of new vehicles, particularly electric and hybrid models, may have diverted some demand away from the used car market.

For consumers, this downturn could present opportunities. A softer market may lead to more competitive pricing and better deals on used vehicles. However, buyers should remain diligent, ensuring that any purchase aligns with their financial capacity and needs.

Dealers and sellers may need to adjust strategies to navigate this cooling market. This could involve reevaluating pricing structures, enhancing marketing efforts, and offering incentives to attract buyers.

As the market continues to evolve, staying informed about trends and adapting to changing consumer behaviors will be crucial for all stakeholders in the automotive industry.