Australia Used Car Market

Australia Used Car Market Size and Share: 

The Australia used car market size was valued at USD 51.3 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 99.0 Billion by 2033, exhibiting a CAGR of 7.2% 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 Australia used car market is witnessing significant growth, primarily driven by affordability concerns and the rising prices of new vehicles. For instance, in 2024, Land Rover Defender models between two and four years old retain 102 percent of their value when sold on the used market of Australia. With financial pressures and economic uncertainty, consumers are increasingly considering pre-owned cars as cost-effective and reliable options. The availability of certified pre-owned programs, offering vehicles with warranties and thorough inspections, has further enhanced buyer confidence, attracting a wider customer base. Additionally, the flexibility of financing options tailored for used car buyers has made purchasing pre-owned vehicles more accessible to a diverse demographic, boosting 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 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 from2025-2033. 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
   

Hatchbacks are a popular segment in Australia used car market, especially among urban buyers seeking compact and fuel-efficient vehicles. Their small size offers great value and are the socially most acceptable vehicles when it comes to city driving and small-family driving. With better maneuverability and lower maintenance costs, hatchbacks cater to budget-conscious consumers. The availability of modern features in newer pre-owned models has further boosted their appeal. Hatchbacks also benefit from a steady resale value, making them a reliable choice for first-time buyers or those looking for economical commuting options.

Sedans hold a significant share in Australia used car market, valued for their comfort, spacious interiors, and refined driving experience. They are favored by professionals and families for their balance of style and practicality. Sedans often feature advanced safety and technological enhancements, even in older models, which increases their appeal in the pre-owned market. Furthermore, sedans remain an attractive proposition as newer vehicles with lower fuel economy enter the market for their reliability and comfort for urban and countryside driving convenience.

SUVs are a prominent segment in Australia used car market, driven by their versatility and adaptability to diverse terrains. They are particularly popular among families and adventure-seekers for their spacious interiors, durability, and towing capabilities. With rising demand for pre-owned fuel-efficient and hybrid SUVs, this segment is gaining traction in both urban and rural areas. SUVs also command strong resale value, making them an attractive investment for buyers seeking practicality and long-term reliability. Their ability to balance performance and comfort makes SUVs a standout choice in the used car market.

Analysis by Vendor Type: 

• Organized
• Unorganized
   

The organized segment in Australia used car market includes dealerships, certified pre-owned programs, and established online platforms. This segment offers structured processes, including vehicle inspections, warranties, and financing options, providing buyers with confidence and reliability. Organized vendors prioritize transparency by offering detailed vehicle histories and pricing comparisons. They also leverage digital tools to enhance customer experience, such as online marketplaces and virtual inspections. As consumer preferences shift toward secure and professional transactions, the organized segment continues to grow, becoming a key driver of trust and efficiency in the market.

The unorganized segment comprises private sellers and informal networks, offering direct, often less-structured transactions. This segment attracts budget-conscious buyers seeking lower prices and direct negotiations. However, it may involve greater risks, such as limited access to vehicle histories and warranties. Despite these challenges, the unorganized market remains significant in rural and regional areas, where formal channels may be limited. With fewer overheads, this segment appeals to buyers looking for cost-effective solutions, but it faces increasing competition from organized vendors offering more secure and transparent processes.

Analysis by Fuel Type: 

• Gasoline
• Diesel
• Others
   

Gasoline-powered vehicles are a key segment of Australia used car market, appealing to urban and suburban buyers. These vehicles are known for their wide availability and lower upfront costs compared to other fuel types, making them preferred choice for their smoother performance and reduced noise level, suitable for daily commuting and city driving. Improved fuel efficiencies have helped push their appeal in the used market. While demand for gasoline vehicles remains strong, increasing environmental awareness is gradually influencing a shift toward more sustainable alternatives, such as hybrids and electric vehicles.

Diesel vehicles hold a significant share in Australia used car market, especially among consumers requiring high-torque engines for towing or long-distance driving. They are particularly popular in rural and regional areas, where robust vehicles like SUVs and utility trucks are essential for agricultural and industrial use. Moreover, SUVs and utility trucks become a matter of getting along in agricultural and industrial endeavors. The diesel vehicle cuts a more economical role for the buyer with prolonged distance travel. Furthermore, rising concerns toward emissions and the growing availability of green alternatives yearn to displace them slowly.

Analysis by Sales Channel: 

• Online
• Offline
   

The online sales channel is transforming how Australians buy used cars, offering convenience and a wider selection. Buyers can easily compare prices, check vehicle histories, and secure financing, all from the comfort of their homes. Features like virtual inspections and home delivery make the process seamless, especially for tech-savvy consumers. Moreover, online platforms also help connect rural buyers with a broader range of options, ensuring accessibility across the country. As more people embrace technology, the online channel is becoming an increasingly popular and efficient way to purchase used vehicles.

The offline sales channel remains essential in Australia used car market, offering a personal, hands-on experience for buyers. Traditional dealerships and private sales provide opportunities for in-person inspections, test drives, and face-to-face negotiations, which many buyers value for trust and confidence. Dealerships often enhance this experience with certified pre-owned programs and flexible financing. In regional and rural areas, offline sales are particularly significant, as access to digital platforms may be more limited. Furthermore, for those who prefer a more tangible approach, the offline channel continues to be a trusted and reliable option. 

Regional Analysis: 

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

Australia Capital Territory & New South Wales region is a significant contributor to the Australia used car market due to its dense population and robust economic activities. High urbanization and diverse transportation need drive demand for reliable used vehicles. The market benefits from the growing adoption of certified pre-owned programs and online platforms, offering consumers access to a wide range of vehicles. Additionally, the region's proximity to major urban centers like Sydney boosts transaction volumes. Fuel-efficient and hybrid models are gaining traction, reflecting consumer preferences for sustainable and cost-effective options.

Victoria, with Melbourne plays a crucial role in the used car market in this region, supported by high population density and economic activities. Certified pre-owned vehicles are particularly popular, reflecting a focus on quality and reliability. Tasmania's market is smaller but steadily growing, driven by demand for versatile vehicles suited to its diverse terrain. Both regions benefit from digital platforms simplifying transactions and broadening consumer access to used cars. Increasing interest in fuel-efficient and eco-friendly models highlights changing preferences among cost-conscious and environmentally aware buyers.

Queensland’s used car market is driven by its vast geographic area and reliance on personal vehicles in both urban and rural settings. Demand for SUVs and utility vehicles is particularly strong, reflecting lifestyle and terrain needs. Brisbane leads in transaction volumes, supported by a growing population and rising adoption of online marketplaces. Fuel-efficient and pre-owned electric vehicles are gaining attention, aligning with broader sustainability trends. Flexible financing options and certified pre-owned programs further enhance market appeal, attracting a diverse consumer base across the state.

The used car market in Northern Territory and South Australia is shaped by the regions' distinct geographic and economic characteristics. Northern Territory’s demand centers on durable vehicles suited for rugged terrains, such as SUVs and four-wheel drives. South Australia’s market, led by Adelaide, sees a mix of urban and regional demand, with growing interest in fuel-efficient and hybrid models. Both regions benefit from digital platforms and tailored financing options, addressing the needs of a smaller but diverse consumer base. Certified pre-owned programs further enhance buyer confidence in these areas.

Western Australia used car market is characterized by high demand for vehicles capable of handling long distances and diverse terrains. SUVs and utility vehicles dominate sales, driven by the region's mining industry and rural lifestyle. Perth leads in transaction volumes, supported by a strong population base and growing adoption of online platforms. Consumer interest in fuel-efficient and eco-friendly vehicles is on the rise, reflecting broader market trends. Flexible financing options and access to certified pre-owned programs further contribute to the region's market growth and appeal. 

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.

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, market forecasts, and dynamics of the Australia used car 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.