Mid-Year Insights Show Used Car Supply Surging

Despite this influx of inventory, consumer demand has remained steady. The report notes that 1,133,990 used cars were sold in the first six months of 2025, marking a slight increase from the previous year. This equilibrium between supply and demand has led to more stable pricing, benefiting both consumers and dealers.

One of the key trends highlighted in the report is the shift back toward dealership sales. Dealer transactions now account for 46.7% of total used car sales, up from 36.5% in the previous year. This resurgence suggests a growing consumer preference for the reliability and services offered by dealerships, such as warranties and certified pre-owned programs.

James Voortman, CEO of AADA, commented on these developments, stating that after a year of constrained supply and strong retained values, we're seeing greater balance return to the used car market. The mix of rising stock levels, stable demand, and more stable pricing is creating better conditions for consumers and dealers alike.

Several manufacturers have experienced significant growth in their sales figures during this period. Brands such as GWM, Kia, and MG have emerged as notable performers, reflecting a diversifying market where consumers are exploring a broader range of options.

The report also sheds light on the performance of specific vehicle models. The Ford Ranger maintained its position as the top-selling used model, with 43,030 units sold. It was closely followed by the Toyota Hilux and Toyota Corolla, indicating sustained demand for these popular models.

Additional insights from the 2025 mid-year AIR include:

• Battery Electric Vehicles (BEVs) now account for 1.1% of all used car sales, up from 0.8% in the previous year, signaling a gradual shift towards more sustainable vehicle options.
• Private sales have decreased significantly, now making up 53.3% of all transactions, down from 63.5%. This decline suggests a growing trust in dealership offerings.
• Retained values are lower in 2025 compared to the previous year; however, the rate of decline month-to-month is more gradual, indicating a more stable market environment.
• The average number of days to sell a used vehicle has remained steady for dealers, though private sellers are experiencing longer selling periods compared to the same period in 2024.

For consumers, this surge in supply and the resulting market stabilisation present an opportune time to explore used car options. The increased inventory offers a wider selection, potentially leading to better deals and more favorable financing terms. Prospective buyers are encouraged to conduct thorough research, compare different models, and consider purchasing from reputable dealerships to ensure quality and reliability.

In conclusion, the Australian used car market's current trajectory towards balance and stability is a positive development for all stakeholders. As the market continues to evolve, staying informed about trends and leveraging available resources will be key for consumers looking to make well-informed purchasing decisions.