TheAutoExec

Australia’s used car market continues its downward spiral with November sales plunging 6.4%. Every state, segment and top-selling model declined as dealer margins face mounting pressure heading into December.

Used car sales have dipped, according to AADA stats. November sales fell 6.4% to 193,266 vehicles as every state and segment contracted, according to the latest Automotive Insights Report (AIR) from the Australian Automotive Dealer Association and AutoGrab.

The figure caps five consecutive months of deterioration. Sales have now fallen 9.3% since July, when the market moved 206,216 units.

“November saw a clear softening across the board, with fewer buyers active in the market and a gradual reduction in stock levels,” said AADA CEO James Voortman.

“This softer activity is something many dealers will recognise on the ground – fewer leads, longer days to sell, and a shift towards more deliberate consumer purchasing behaviour.”

While the association’s summary strikes a measured tone, the underlying data reveal accelerating stress across multiple indicators.

Regional Performance Deteriorates

Victoria recorded the sharpest decline among major markets, with sales down 9.2% to 46,982 units. Western Australia fell 10.1% to 25,693 units – a dramatic reversal from July, when the state posted 2.3% growth and was the nation’s strongest performer.

New South Wales declined by 4.6%, Queensland by 3.8%, and South Australia by 3.8%. The Northern Territory collapsed 20% to just 560 units, though small absolute volumes suggest local factors at play.

Total active listings fell 3.5% to 313,781 vehicles, the lowest level since July. Combined with the sharper sales decline, this suggests demand is falling faster than supply can adjust.

Velocity Reverses Course

Average days to sell jumped to 46.7 days in November, up from 42.4 days in September – a 10.1% increase that reverses three months of improvement.

The Ford Ranger, Australia’s best-selling used vehicle, now averages 55.9 days to sell, up from 43.8 days in September. The Toyota Hilux extended to 46.9 days from 38.3, while the Toyota LandCruiser Prado stretched to 52.1 days from 39.8.

When days to sell rise despite falling prices, it typically indicates weakening demand rather than consumer caution.

All Top Sellers Decline

Every vehicle in the top-10 rankings posted month-on-month declines. The Toyota RAV4 fell 16.1% to 1870 sales, the steepest drop among major models. The Toyota Hilux declined 12.7% to 4143 units, while the Mitsubishi Triton fell 10.8% to 2187 sales.

The Ford Ranger held the top position with 5671 sales, down 6.5% from October.

Commercial Segment Weakness

Light commercial vans and buses recorded the sharpest segment decline, down 14.3% to 5395 sales. Business vehicle purchases often signal broader economic conditions, as commercial buyers tend to pull back before private consumers.

Utes declined 8.8% to 34,445 sales, SUVs fell 6.2% to 83,746 units, and passenger cars dropped 4.7% to 69,680 sales.

Fuel Type Divergence

Contrary to the association’s assertion that fuel types declined evenly, electric vehicle listings crashed 22.7% to 5289 units while sales fell 13.9% to 2783 vehicles. Victoria’s EV listings alone dropped 21.9%.

Hybrid sales plunged 11.1% to 13,138 units, reversing the 8% growth recorded between July and September. The reversal suggests the earlier increase reflected a manufacturer’s inventory push rather than a sustained demand shift.

Diesel sales declined 7.6% to 60,831 units, while petrol fell 5% to 116,038 sales.

Value Retention Pressures

Retained values declined across all segments. Three-year-old passenger cars fell 1.9 percentage points to 81.4% in a single month, while 2024-model SUVs dropped to 92.6% from 94.3% in October.

The combination of falling sales, rising inventory age and accelerating depreciation creates margin pressure for dealers heading into the typically critical December trading period.

Private sellers now represent 49.7% of total volume, up from 46.9% in September, suggesting either increased distressed selling or reduced dealer pricing competitiveness.

AADA’s November AIR can be downloaded here

“The ACCC has got a list of compliance and enforcement priorities, and its list for 2025–26 includes concerns related to environmental claims and sustainability – with a particular focus on greenwashing,” explains Eric Louca, Commercial-Automotive Partner at Baybridge Lawyers. “Once they’ve put that on the list, it means that they’re looking for wrongdoing in the area.”

The Sunscreen Warning Shot

Louca says recent ACCC proceedings in Federal Court against Edgewell over ‘reef-friendly’ claims for Hawaiian Tropic and Banana Boat sunscreens sends a clear message to all industries, including automotive.

The ACCC alleges the representations were “false, misleading or deceptive because the products contained ingredients which harm, or risk causing harm, to reefs” and that Edgewell “had no reasonable basis for making those reef-friendly representations and/or the representations were not appropriately supported by scientific evidence or testing at the time they were made”.

For automotive brands eager to tout environmental benefits, this case serves as a timely warning about the risks of aspirational marketing without substantiation.

The Australian Consumer Law has changed the way the automotive industry and consumers interact. In the first of a series of articles examining some of the legal challenges modern OEMs and their networks face, we explore the intersection of ACL and new car brands.

In 2017, the Australian Competition and Consumer Commission (ACCC) released a comprehensive market study into Australia’s new car retailing industry. It sent shockwaves through automotive boardrooms across the country. The report didn’t just highlight problems – it identified a fundamental misunderstanding of how consumer rights work in the automotive sector.

“There was a concern that consumers were being denied rights under the Australian Consumer Law (ACL) because their warranty had expired,” explains Eric Louca, Commercial Automotive Partner at Baybridge Lawyers, who has spent nearly two decades navigating the intersection of automotive business and consumer law.

“With the advent of ACL, the warranty can’t be the reference point in the way you’re dealing with consumers. The reference point has to be what consumers’ rights are under the ACL.”

Eight years later, that wake-up call has fundamentally reshaped how established automotive brands operate in Australia. But for the wave of new entrants flooding the market, the lessons are still being learnt – sometimes the hard way.

The potential scrapping of Australia’s luxury car tax could reshape both new and used vehicle markets. Here’s how this tax reform might affect your next car purchase.

Much of the automotive industry has been lobbying respective federal governments to axe the Luxury Car Tax (LCT) for many years, especially with no big local manufacturing sector to protect.

In light of his crushing win in last week’s election, second-term Labor Prime Minister Anthony Albanese has reportedly signalled an openness to doing precisely this, as part of a broader free-trade discussion.

What could this theoretical move mean for the price of new cars? And of more relevance to this column, what are some potential downstream impacts we may need to look for – namely the implications for resale values and used car volumes?

If a new ‘luxury’ car that costs $120,000 with the LCT comes down to $111,500 sans-LCT, this would clearly open the door to reduced value of three-year old versions in the second-hand market. Whether this is a problem for you clearly depends on your individual circumstance, but it’s worth thinking about the downstream issues.

But, as TheAutoExec discovered, many local tuning claims lack substance, and it’s the customers who’ll get caught in the crossfire.

When a car manufacturer announces its vehicles have been “locally tuned for Australian conditions,” it’s a statement that carries significant marketing weight. Increasingly, brands entering the Australian market are touting their commitment to local tuning. But what actually qualifies as genuine local tuning, and how many of these claims stand up to scrutiny?

Bernie Quinn is ideally placed to answer this question. A veteran of the Australian automotive engineering scene with deep roots into Australia’s local manufacturing and engineering past, Quinn is the CEO and Engineering Director at Premcar – the current benchmark for local tuning, thanks to its Aussie-focussed Navara Warrior and Patrol Warrior enhancement programs with Nissan.

Quinn offers a perspective that cuts through the marketing speak. With decades of experience in vehicle development and a current role overseeing projects that include comprehensive chassis reengineering as well as confidential ground-up third-party development programs, Quinn’s insights offer a benchmark for what true local tuning should entail — and why many manufacturers’ claims might amount to little more than a “box-ticking exercise.”

In a quiet corner of the BMW Australia headquarters cafe, Fabio Brunatti is discussing the future of the automotive industry. It’s not about horsepower or torque figures but something potentially more lucrative — digital services.

“Connected Package Professional, which is your three-year basic service with real-time traffic information, weather, and online functions, has been our most popular product. It still is,” explains Brunatti, BMW Australia’s ConnectedDrive Manager.

“Six out of the top 10 products [we sell] are [versions] of Connected Package Professional,” he adds.

Brunatti’s statement is on point — connected services are no longer a nice-to-have — they’re becoming a ticket to ride in vehicles as electrification expands. Now, they are shaping up as a cornerstone of BMW’s business strategy and a significant revenue stream that’s only set to grow as consumers demand more connectivity and onboard functionality and vehicles themselves evolve to platforms that require less traditional maintenance.