Australia’s used car market has largely steadied after years of upheaval, with fresh data showing dealer transactions surged in 2025 as buyer confidence shifted back toward established retail channels.
Data from the Australian Automotive Dealer Association (AADA) and AutoGrab reveal that 2.32 million used vehicles were sold nationwide last year, representing a modest 0.37 per cent dip from 2024, a result that points to stability rather than a slowdown.
A quick snapshot of the used car market in 2025
- Total sales: 2.32 million vehicles
- Annual change: -0.37% year on year
- Dealer share: 48.6% (up from 39.1%)
Resurgence of the used car market
After supply shortages, inflated pricing, and erratic stock levels defined much of the early 2020s, 2025 marked a return to more predictable trading conditions.
Inventory levels normalised, price volatility eased, and the gap between buyer expectations and seller pricing narrowed, creating a more balanced marketplace across most vehicle segments.
Dealers reclaim ground from private sellers
The biggest shift came in who consumers chose to buy from.
Dealer-led transactions climbed to 48.6% of total used car sales in 2025, a sharp increase from 39.1% the year prior, signalling a decisive move away from private listings.
Used car sales by channel
| Year | Dealer Sales Share |
| 2024 | 39.1% |
| 2025 | 48.6% |
According to AADA, buyers are increasingly prioritising warranty cover, clearer pricing and post-sale support as the market matures.
AADA chief executive James Voortman said the trend reflects a recalibration in consumer behaviour rather than a short-term anomaly.
“The increase in dealer market share reflects growing consumer confidence in what purchasing through a dealer provides,” Voortman said. “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.”
SUVs hold firm as EV options expand
SUVs continued to dominate used car demand throughout 2025, further eroding the share of traditional passenger vehicles.
At the same time, electrified vehicles, spanning hybrids, EVs and plug-in hybrids, recorded steady growth, supported by improving supply and a broader range of models entering the secondary market.
Clearer outlook for 2026
AutoGrab chief operating officer Saxon Odgers said the 2025 data points to a healthier market structure heading into the year ahead.
“The used car market has moved beyond the distortions of recent years and into a more stable, sustainable phase. 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,” Odgers iterated. “With supply chains normalising and transparency improving, the 2025 results provide a constructive foundation for 2026. Dealers and OEMs now have a clearer line of sight to pricing, risk and inventory planning than at any point in the last five years.”
With volatility fading and buyer confidence consolidating around dealer channels, the used car market appears to be entering a more predictable phase, one that could shape pricing and stock strategies well into 2026.
Comments
New Comment