Sales peaked in July 2024, with sustained demand observed throughout much of the year. However, the final quarter saw a noticeable slowdown, with listings peaking in November, indicating a softening in consumer demand relative to supply. This trend suggests that while the market remains robust, factors such as affordability pressures and broader economic conditions are beginning to influence consumer behavior.
James Voortman, CEO of AADA, commented on the findings, stating that the 2024 results highlight a dynamic used car market that showed strong growth through much of the year before slowing in the final quarter. He noted that while demand remains healthy, signs of cooling are evident, particularly in the latter months, as affordability pressures and economic factors come into play.
Toyota maintained its position as the top-selling brand in the used car market, with 390,298 vehicles sold, followed by Mazda and Ford. Among individual models, the Ford Ranger led with 82,448 sales, ahead of the Toyota Hilux and Toyota Corolla. These figures underscore the continued popularity of certain brands and models among Australian consumers.
Profit margins tightened, and the average days to sell increased by 15% for listings between August and October, further indicating a slowdown in demand. As the industry moves into 2025, a more subdued market is anticipated, with sales likely to stabilize rather than grow at the rapid pace observed earlier in 2024.
For consumers considering purchasing a used vehicle, this market shift presents potential opportunities. The increase in listings and the softening of demand may lead to more competitive pricing and better deals. Prospective buyers are encouraged to conduct thorough research, compare prices across different platforms, and consider factors such as vehicle history and condition to make informed purchasing decisions.
As the used car market adjusts to these changing dynamics, both consumers and industry stakeholders will need to navigate the evolving landscape with caution and adaptability. Staying informed about market trends and economic indicators will be crucial in making strategic decisions in the coming year.
