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AADA Reports Stabilisation in Australian Used Car Market for 2025

Increased Dealer Participation and Alternative Powertrains Mark Key Trends

AADA Reports Stabilisation in Australian Used Car Market for 2025?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), in collaboration with AutoGrab, has released the Annual 2025 Automotive Insights Report, providing a comprehensive overview of the nation's used car market over the past year.
The report indicates a stabilisation in the market, with total used car sales reaching 2.32 million vehicles in 2025, a slight decrease of 0.37% compared to 2024.

A notable trend highlighted in the report is the growing share of dealer-led transactions. In 2025, dealer sales accounted for 48.6% of the used car market, up from 39.1% in 2024. This shift suggests increased consumer confidence in dealership purchases and improved availability of dealer stock.

Additionally, the report points to a rising interest in alternative powertrains. Hybrid vehicles, electric vehicles (EVs), and plug-in hybrid electric vehicles (PHEVs) have all increased their share of the used car market compared to the previous year. This trend reflects a growing consumer preference for lower-emission vehicles, even as total sales volumes have slightly declined.

James Voortman, CEO of AADA, commented on the market's performance, noting that after several years of disruption, the used car market has settled into a more sustainable operating environment. He emphasized that the increase in dealer market share reflects growing consumer confidence in purchasing from dealerships.

For consumers navigating the used car market, these insights suggest a more balanced environment with diverse options, including a broader selection of alternative powertrain vehicles. Engaging with reputable dealers and staying informed about market trends can aid in making well-informed purchasing decisions.

Published:Friday, 13th Feb 2026
Author: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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