Car Loans Australia :: News
SHARE

Share this news item!

December Sees Decline in Used Car Sales and Values, Reports AADA

Automotive Insight Report Highlights Market Slowdown Amid Increased Supply

December Sees Decline in Used Car Sales and Values, Reports AADA?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Australian Automotive Dealer Association (AADA) has released its December 2025 Automotive Insight Report (AIR), revealing a notable downturn in the used car market.
After a period of oversupply, the market experienced a 3.8% reduction in listings, bringing the total to 322,532 vehicles.
Despite this decrease in supply, sales figures declined more sharply by 8.1%, totaling 181,724 units for the month.

This trend indicates a shift towards a buyer's market, offering consumers increased opportunities to negotiate favorable deals during the festive season. The average time to sell a used vehicle has risen to 48.7 days, the highest since October, suggesting that sellers are facing challenges in moving inventory. This pattern is anticipated to persist into 2026, influenced by the growing availability of new vehicles, which is creating a spillover effect into the used car sector.

Geographically, all states except the Northern Territory and Western Australia reported a decline in used car listings. This widespread decrease underscores a national trend of softening demand in the used car market.

In terms of vehicle values, the report indicates a continued downward trajectory across almost all segments and age categories. The only exception was light commercial vehicles (LCV-Utes) in the 2-5 year age bracket, which maintained their value. This depreciation trend reflects the broader market dynamics of increased supply and shifting consumer preferences.

For consumers, this environment presents an opportune time to consider purchasing a used vehicle, as the combination of increased supply and declining values enhances bargaining power. However, buyers are advised to conduct thorough research and inspections to ensure the quality and reliability of their chosen vehicles.

Sellers, on the other hand, may need to adjust pricing strategies and expectations to align with the current market conditions. Offering competitive pricing and ensuring vehicles are well-presented and maintained can help attract potential buyers in a more competitive landscape.

Overall, the December AIR highlights a cooling trend in the used car market, signaling a shift from the robust growth observed in previous periods. Stakeholders are encouraged to stay informed about market developments and adapt strategies accordingly to navigate the evolving automotive landscape.

Published:Friday, 19th Dec 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Finance News

Hotter Inflation Puts Car Loan Budgets Back in Focus
Hotter Inflation Puts Car Loan Budgets Back in Focus
29 Oct 2026: Paige Estritori
Australia’s latest inflation data has put car loan budgeting back under pressure, with the Australian Bureau of Statistics reporting on 28 October 2026 that annual CPI rose to 4.3% in September and trimmed mean inflation lifted to 3.6%. Coming after the Reserve Bank of Australia raised the cash rate target to 4.60% on 29 September, the figures give vehicle buyers another reason to plan around uncertain borrowing costs rather than assume cheaper finance is just around the corner. - read more
Green Car Loan Deals Are Growing, But the Fine Print Still Matters
Green Car Loan Deals Are Growing, But the Fine Print Still Matters
17 Sep 2026: Paige Estritori
Green car finance is becoming a more visible part of Australia’s car loan market, with lenders continuing to promote discounted rates for eligible electric, hybrid and other lower-emission vehicles. For buyers weighing up a new EV, plug-in hybrid or fuel-efficient model, the headline appeal is obvious: a lower rate can reduce the cost of borrowing and may make a higher purchase price feel more manageable. - read more
Why Sharper New-Car Offers Still Need a Loan Check
Why Sharper New-Car Offers Still Need a Loan Check
03 Sep 2026: Paige Estritori
Australia’s new-car market is showing more signs of competition, with recent industry updates pointing to sharper drive-away offers, run-out campaigns and finance-led promotions across selected brands. For buyers, that can make the showroom feel more attractive than it did during the tight-supply years, when wait times and limited stock gave sellers more pricing power. - read more
Softer Used-Car Prices Could Shift Finance Decisions
Softer Used-Car Prices Could Shift Finance Decisions
27 Aug 2026: Paige Estritori
Australia's used-car market appears to be moving into a more balanced phase, with recent industry updates pointing to improved vehicle availability and less pressure on prices across some mainstream segments. That is welcome news for buyers who spent the past few years dealing with limited stock, long new-car wait times and unusually firm second-hand values. - read more
What the Latest RBA Rate Hold Means for Car Buyers
What the Latest RBA Rate Hold Means for Car Buyers
13 Aug 2026: Paige Estritori
The Reserve Bank of Australia's latest decision to leave the cash rate unchanged keeps car buyers in a familiar holding pattern: borrowing costs are not rising sharply, but they are not easing quickly either. For households planning a new or used vehicle purchase, that means the focus should remain on preparation, comparison and affordability rather than waiting for a dramatic rate shift. - read more


Car Loans Articles

Navigating Car Finance: How to Choose a Loan That Works for You
Navigating Car Finance: How to Choose a Loan That Works for You
Buying a car is a significant financial decision, and for many, it means exploring the world of car finance. In Australia, the options are plentiful, and understanding them is key to making an informed choice. Car finance can seem daunting, with various loan types, interest rates, and repayment plans to consider. But fear not – a clear understanding of these options can steer you towards a deal that complements your financial circumstances. - read more
Do You Need a Deposit for a Car Loan in Australia?
Do You Need a Deposit for a Car Loan in Australia?
A deposit is not always required for a car loan in Australia, but contributing money upfront or using a trade-in can affect the amount you borrow, your repayments, lender risk and the total cost of finance. - read more
Car Loan Refinancing in Australia: When It May Be Worth Considering
Car Loan Refinancing in Australia: When It May Be Worth Considering
Car loan refinancing means replacing your existing car loan with a new loan, usually to change the interest rate, repayment amount, lender or loan term. For Australian borrowers, it can be useful when market rates, credit history, income, expenses or loan needs have changed, but the potential benefits should always be weighed against fees, break costs and the total cost over the life of the loan. - read more
Dealer Finance, Direct Lender Finance and Broker-Arranged Car Finance Explained
Dealer Finance, Direct Lender Finance and Broker-Arranged Car Finance Explained
Car finance in Australia can be arranged through a dealer, directly with a lender or with help from a broker. Each channel can lead to a car loan, but the process, comparison work, documentation flow, fees and level of assistance can differ. This guide explains how each option works and what to check before deciding how to apply. - read more
From Fuel to Finance: A Comprehensive Breakdown of Car Costs
From Fuel to Finance: A Comprehensive Breakdown of Car Costs
When it comes to owning a car in Australia, many of us view it as a symbol of freedom, an essential convenience, or even a reflection of our personal style. Yet, for all the road trips planned and errands run, the cost of owning a car extends well beyond the sticker price. - read more



Knowledgebase
Loan Origination Fee:
A fee charged by a lender for processing a new loan application, typically expressed as a percentage of the loan amount.