Used cars selling faster for less!

Increased stock availability in the Australian new car market appears to be impacting used car demand and values, with new data from used car ‘B2B intelligence platform’ AutoGrab and the Australian Automotive Dealers Association (AADA) showing the average time it takes to sell a used car slightly decreased in December 2023, with average retained value edging lower.

The jointly commissioned Automotive Insights Report (AIR) is a monthly snapshot recording the state of Australia’s used car market, confirming a little more than 270,000 used cars were listed for sale across the country last month, with more than 169,000 vehicles (61 per cent of listings) going on to change hands.

Not surprisingly, given the seasonal nature of the market, the number of cars offered for sale in December was down nine per cent on the prior month while the number of sales was 18 per cent lower.

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But after an upward trend for much of the second half of 2023, average retained value for passenger cars two to four years old took a dip of 1.1 per cent, with SUVs dropping 2.3 per cent and light commercials (predominantly utes) falling 1.5 per cent. Vehicles five to seven years old followed a broadly similar trend.

At the same time, with buying decisions possibly influenced by upcoming holiday road trips, the average time it took to sell a car fell from 52 to 50.9 days.

Commenting on the most recent AIR numbers, AutoGrab’s Chief Commercial Officer, Saxon Odgers said, “The dip in used car trading during the holiday season is notable but unsurprising. While the average time to sell saw a slight reduction, the overarching trend of increasing days to sell is one that we’ll keep monitoring in 2024.

“For people looking to buy a used car, you’ll likely find your dollar going further and potentially be able to buy a newer model than you expect. The continued drop in used car prices is likely to extend into 2024.

“Another key sector seeing prices drop is the light commercial vehicles (LCV). While demand remains strong for utes, the price of used LCVs is easing. With great supply, there is room for buyers to be choosy when it comes to choosing a second hand ute,” he said.

The most popular used car choices more or less mirrored the top of the new car sales leader board with the Ford Ranger edging out the Toyota HiLux, with the Corolla, Camry and RAV4 playing support roles in the Top 10 list.

The top three used car retained value performers were recent examples of the Toyota Yaris (107.7 per cent), Honda Jazz (103.7 per cent) and Toyota Camry (97.6 per cent).

Across the market, private sales accounted for just over 55 per cent of vehicles listed and close to 62 per cent of cars sold, with commercial dealers in the minority on both counts.