According to the report, the used car market experienced robust growth throughout most of 2024, with total sales reaching 2,324,805 units-a 12.1% increase compared to 2023. Sales peaked in July, reflecting sustained consumer demand driven by factors such as supply chain improvements and economic recovery post-pandemic.
However, the latter months of 2024 saw a deceleration in this growth trajectory. Listings peaked in November, indicating a softening in consumer demand relative to the increasing supply. This shift suggests that the market is moving towards a more balanced state, with supply catching up to demand.
AADA CEO James Voortman commented on these trends, noting that while demand remains healthy, signs of cooling are evident, particularly in the final quarter of 2024. Factors such as affordability pressures and broader economic conditions are contributing to this moderation.
For consumers, this evolving market landscape presents both challenges and opportunities. The slowdown in growth may lead to more competitive pricing and better deals for buyers. However, it's essential for consumers to remain vigilant, especially in light of recent findings by ASIC regarding lending practices in the car finance sector. Prospective buyers should ensure they are securing fair financing terms and are fully aware of all associated costs.
As the used car market transitions from rapid growth to a more measured pace, stakeholders-including dealers, lenders, and consumers-must adapt to these changes to navigate the market effectively in 2025.
