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

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.