Australia Used Car Market

Australia Used Car Market Size and Share: 

The Australia used car market size was valued at USD 77.2 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 197 Billion by 2033, exhibiting a CAGR of 10.80% from 2025-2033. The market is witnessing robust growth, fueled by affordability, increasing demand for reliable pre-owned vehicles, and the rise of digital platforms simplifying transactions. Economic factors and a shift toward cost-effective options are further propelling the market, making it a significant contributor to the automotive industry's overall expansion.

The growing concerns about affordability and the rising cost of new cars represent one of the key factors positively influencing the Australia used car market. For instance, in 2024, Land Rover Defender models between two and four years old retained 102 percent of their value when sold on the used market of Australia. Due to economic instability and financial strains, more buyers are viewing used automobiles as dependable and affordable alternatives. The availability of certified pre-owned programs, which provide cars with comprehensive inspections and warranties, has increased user confidence and drawn in a larger clientele. Furthermore, a wider range of people may purchase pre-owned cars owing to the flexibility of financing alternatives designed specifically for used car buyers, which has enhanced market activity.

The growing role of digital platforms in transforming the automotive industry has also been instrumental in driving the used car market. These online platforms simplify transactions by offering transparent pricing, detailed vehicle histories, and convenient access to a broader range of options. This technological advancement caters to tech-savvy buyers seeking efficient and hassle-free purchase experiences. Furthermore, the rising awareness of sustainable practices has encouraged consumers to choose pre-owned cars as an environmentally conscious alternative, reducing waste and extending vehicle lifespans. For instance, the production and sales of electric vehicles surged between April and June 2024, with sales rising 91% from the first quarter and 246% year-on-year. This growth highlights the increasing acceptance and demand for sustainable vehicles in Australia, reflecting a shift in consumer preferences toward environmentally friendly transportation options in the rapidly evolving automotive market.

Australia Used Car Market Trends: 

Rising Demand for Fuel-Efficient and Eco-Friendly Vehicles

The Australia used car market is witnessing a significant rise in demand for fuel-efficient and eco-friendly vehicles, including hybrids and electric models. For instance, sales of plug-in hybrids, equipped with externally rechargeable batteries to reduce petrol use, rose by 1.49% market share by 30 June 2024, highlighting rising demand for eco-friendly vehicle options in Australia’s evolving automotive market. As fuel prices remain high and environmental awareness grows, consumers are prioritizing cars with lower emissions and better fuel economy. This shift is reshaping the inventory preferences of dealerships, with an increasing focus on sustainable options.

Expansion of Online Marketplaces

Online platforms are transforming the Australia used car market statistics by providing convenient and transparent purchasing experiences. These digital marketplaces offer comprehensive tools such as price comparisons, vehicle history reports, and financing options, which empower buyers with better decision-making capabilities. For instance, in March 2024, FinTech startup AutoSettle launched a platform to transform the vehicle-buying process in Australia. This innovative platform streamlines transactions, offering instant settlements, enhanced security, and digital identity verification. By addressing inefficiencies and reducing fraud risks, it benefits customers by providing a seamless, secure experience integrated with dealerships, financiers, and registrars, supporting digital transformation in Australia’s automotive market. This digital shift is particularly appealing to younger, tech-savvy buyers, driving substantial growth in online sales.

Growing Interest in SUVs and Crossovers

Australia's used car market is experiencing a surge in demand for SUVs and crossovers, reflecting changing consumer lifestyles and preferences. For instance, in November 2024, SUV sales reached 82,494 units, reflecting a notable shift in the used car market. This shift highlights the increasing preference of Australian consumers for versatile and practical vehicles, reinforcing SUVs' position as a favored choice in the evolving automotive landscape. These vehicles are favored for their spacious interiors, practicality, and suitability for both urban and rural settings. As families and adventure-seekers seek versatile transportation options, the availability of pre-owned SUVs at competitive prices is driving this trend.

Australia Used Car Industry Segmentation: 

IMARC Group provides an analysis of the key trends in each segment of the Australia used car market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on vehicle type, vendor type, fuel type, and sales channel.

Analysis by Vehicle Type: 

• Hatchbacks
• Sedan
• Sports Utility Vehicle
• Others

Sports utility vehicles hold 23.1% of the market share. They offer a combination of space, comfort, and versatility, making them popular among families and adventure seekers. Their ability to handle various terrains and provide ample seating capacity appeals to buyers looking for reliable and practical vehicles. SUVs are also preferred for their higher ground clearance, which improves visibility and adds a sense of security while driving. Additionally, the growing trend of outdoor activities and road trips in Australia is driving the demand for SUVs that can support these lifestyles. Many used SUV models are equipped with advanced features, such as all-wheel drive, enhanced safety systems, and spacious interiors, further attracting buyers. The increasing availability of affordable second-hand SUVs, coupled with their reputation for durability, makes them a popular choice in the used car market in Australia.

Analysis by Vendor Type: 

• Organized
• Unorganized

Unorganized accounts for 58.8% of the market share. It offers a wider variety of vehicles at competitive prices, attracting budget-conscious buyers. Many individuals prefer purchasing directly from private sellers or small dealerships to avoid the overhead costs typically associated with organized vendors. The unorganized sector also provides greater flexibility in price negotiation, allowing buyers to secure better deals. Additionally, the presence of online platforms and social media marketplaces has made it easier for individual sellers to connect with potential buyers, boosting sales in this segment. Since unorganized vendors often have lower operating costs, they can offer vehicles at more affordable prices, appealing to people seeking cost-effective options. The availability of diverse vehicle models, including older or rare cars, further strengthens the dominance of the unorganized sector in the market in Australia. Buyers seeking quick transactions with minimal paperwork also find the unorganized sector more convenient.

Analysis by Fuel Type: 

• Gasoline
• Diesel
• Others

Gasoline holds 63.3% of the market share. Gasoline-based vehicles are widely available and have been a popular choice among Australian users for years. Many older car models, which make up a large portion of the used car market, are gasoline-powered, increasing their presence in this segment. Gasoline vehicles are also known for their lower upfront costs compared to diesel or electric options, making them more accessible to budget-conscious buyers. Additionally, gasoline cars generally have simpler engine designs, which often result in lower maintenance costs, appealing to individuals seeking affordable long-term ownership. The widespread availability of gasoline refueling stations across Australia further supports the market growth, ensuring convenience for drivers. People in rural and suburban areas especially prefer gasoline cars for their reliability and ease of use. With gasoline vehicles remaining a common and trusted option in both private sales and dealership offerings, their continued dominance in the market remains strong.

Analysis by Sales Channel: 

• Online
• Offline

Offline accounts for 72.2% of the market share. Offline sales channels, including traditional dealerships, independent sellers, and local car yards, remain trusted and preferred options for buyers seeking used vehicles. Many people prefer visiting physical locations to inspect cars in person, assess their condition, and negotiate prices directly with sellers. This approach allows buyers to test drive vehicles, review service histories, and ensure transparency in the purchase process, which builds trust. Additionally, offline channels often provide personalized guidance from sales representatives, helping individuals to make informed decisions. Local dealerships frequently offer financing options, trade-in services, and warranty coverage, making offline sales convenient for many people. The presence of well-established car yards and dealership networks in both urban and regional areas further supports offline sales. With Australians often valuing face-to-face interactions and hands-on evaluation when purchasing high-value assets like cars, offline sales continue to dominate the market.

Regional Analysis: 

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

Australia Capital Territory & New South Wales, accounting for 34.5%, enjoys the leading position in the market. These regions have high populations, strong economic activity, and well-developed urban centers. According to the data published on the official website of the Australia Capital Territory government, by September 2024, the estimated resident population of the Australia Capital Territory stood at 475,644 individuals, equating to a rise of 0.4% during the third quarter. The presence of major cities like Sydney and Canberra drives higher demand for personal vehicles, especially for daily commuting and lifestyle needs. Additionally, the areas have a significant number of businesses, government offices, and educational institutions, contributing to increased car ownership and vehicle turnover. The strong network of dealerships, car yards, and authorized vendors in these areas also makes it easier for people to access a wide range of used car options. Moreover, the higher purchasing power in these regions is encouraging frequent vehicle upgrades, resulting in a steady supply of well-maintained used cars. With efficient transportation networks and busy urban lifestyles, individuals in Australia Capital Territory & New South Wales often seek reliable and affordable mobility solutions, further catalyzing the demand for used cars in these regions.

Competitive Landscape:

The competitive landscape of Australia used car market is defined by the interplay between traditional dealerships, digital platforms, and certified pre-owned programs. Businesses are leveraging technology to offer streamlined processes, including virtual inspections, financing options, and enhanced transparency. The shift towards online transactions has intensified competition, pushing traditional dealers to adopt hybrid models combining physical and digital offerings. Increasing consumer demand for fuel-efficient and eco-friendly vehicles further drives competition, compelling market players to diversify inventory and cater to evolving preferences. For instance, in 2024, Australia’s second-hand market showed a 52% average increase in used car loans across three vehicle age categories, reflecting growing demand for pre-owned sustainable vehicles and highlighting changing consumer preferences in the country’s automotive sector. Furthermore, as buyers prioritize affordability, reliability, and convenience, market participants continuously enhance services to differentiate themselves in a highly dynamic environment.

The report provides a comprehensive analysis of the competitive landscape in the Australia used car market with detailed profiles of all major companies.

• BMW Group Australia (BMW Premium Certified)
• Carma (ClickCar Australia Pty Ltd)
• CARS24
• Carsales.com Limited (CAR Group Limited)
• Cartopia Pty Ltd (Only Cars)
• Drive.com.au (Nine Entertainment Co. Pty Limited) 
• Gumtree Australia Markets Limited Corporate
• HelloCars Subscription Pty Ltd
• Pickles Auctions Pty Limited
• Toyota Australia (Toyota Certified Pre-Owned Vehicle)

Latest News and Developments: 

• In August 2024, Uber and Car Empire launched an Australian-first pilot to boost the second-hand EV market. Starting in Brisbane and the Gold Coast, Uber drivers can access affordable pre-owned EVs, including used Nissan Leafs, through Uber’s vehicle marketplace. The initiative supports Uber’s goal of achieving zero vehicle emissions by 2040, offering financing and incentives to accelerate EV adoption.

Australia Used Car Market Report Scope: 

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, Australia used car market forecasts, and dynamics of the market from 2019-2033. 
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Australia used car market. 
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia used car industry and its attractiveness. 
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.