Unlike the booming housing market, the used car market is turning in favour of buyers with higher stock volumes pushing asking prices lower, which in turn is driving an increase in sales.

That’s among the findings in the Australian Automotive Dealer Association’s (AADA) latest Automotive Insights Report which looked at used car sales across the nation during May.

The report shows there were 296,542 vehicles listed for sale in May, an increase of 7.2% compared with April, while sales of used cars increased by 4.4%. Queensland and the ACT experienced the biggest monthly increase in sales of 7.3%.

The average time taken to sell a used car increased slightly to 45.5 days, which the AADA said was likely product of the improving supply situation which is also driving a reduction in retained values across all segments.

The Ford Ranger is Australia’s most popular used car, with sales approaching 6,000 vehicles per month, closely followed by the Toyota HiLux, with two other utes also making it into the top 10.

Sales of lower-emissions vehicles remained strong, with hybrids up 6.6% on April, EVs up 8.0%, and PHEVs up 16.6%.

EVs were the only fuel type to experience a reduction in supply, which the AADA said was due to the significant mismatch between demand and supply of used EVs.

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“Ongoing strength in the new car market means that we are seeing an increased supply of used vehicles coming to market, providing consumers with more options at more affordable price points,” said AADA CEO James Voortman.

“Vehicles with the strongest retained values are largely sought after and reliable Japanese makes in both the passenger car and SUV segments as well as in the two to four-year and five to seven-year categories,” he said.

Chief Commercial Officer of AutoGrab Saxon Odgers, which partners with the AADA to create the report, said May's increase in private inventory for sale represented great buying opportunities for consumers.

“With the end of the financial year nearly here, Australians are making major selling or purchasing decisions, which has led to the used car inventory approaching an oversupply,” Mr Odgers said.

“This is not an unexpected shift and has been met with increased demand and sales for used cars across every state in the country.

“The retained value of vehicles has continued to fall while the days to sell has increased, reflecting the oversupply of used vehicles.”

Highlights From the Automotive Insights Report May 2024

• 296,542 vehicles were listed for sale, an increase of 7.2% compared with the previous month.
• Listings grew in every state and territory with South Australia experiencing the highest increase with 8.5% and Tasmania being the lowest at 2%.
• 191,625 used cars were sold in May, an increase of 4.4% from the previous month.
• Sales grew in every state and territory with Queensland and the ACT experiencing the biggest monthly increase in sales of 7.3%.
• Petrol and diesel vehicles dominate the used car market, but there has been strong growth in lower-emissions vehicles, such as hybrids, EVs and PHEVs.Average time to sell a used car is 45.5 days, an increase of over a day from the previous month.
• Retained values continue their gradual decline with passenger vehicles holding their value best in the two to four-year age bracket (84.1%) as well as for the older five to seven-year category (69.8%).
• The Ford Ranger remains Australia’s best-selling used car, followed by the Toyota Hilux.