Plug-in hybrids and electric vehicles leading the way in used car sales growth – but values are dropping
11/19/2024 04:00 PM
Used-car sales fell in October, despite the number of listings being up, as sellers also struggled to shift electric vehicles due to heavy new-car discounting.
Plug-in hybrids and electric cars were the most popular used vehicles sold last month in terms of growth, although their retained values were "well below average" due to oversupply issues.
According to the latest Automotive Insight Report (AIR) from the Australian Automotive Dealer Association (AADA), 2349 used electric vehicles were sold in Australia in October, up 22 per cent on September, while the number listed for sale was 5512 – up 16 per cent.
Plug-in hybrids were the most popular powertrain choice with second-hand buyers in percentage terms, with a rise of 27 per cent in sales.
However, there are concerns that aggressive price discounting on new electric vehicles is creating a knock-on effect for the used-car market, with sellers finding it difficult to move stock.
"The average number of days to sell a used EV has climbed to 67.3, which is no surprise given the significant oversupply of used EVs," said AADA CEO, James Voortman.
"With Trump's presidential win and a further anticipated rise in tariffs on Chinese vehicles [in the US], we're seeing more Chinese-made cars – especially EVs – heading for Australia.
"This is pushing car makers to offer steeper discounts on new cars, making it difficult for used-car sellers to move stock."
Last month the best-selling used EV was the MG 4, up 85 per cent on the previous month – and proving twice as popular as its next-best competitor, the Tesla Model 3.
The next most popular was the Nissan Leaf, followed by the Tesla Model Y and Kia EV6.
However, according to the AADA, retained values are below average compared to previous years, with the most recent data from October 2023 showing sellers achieving rough average of 76 per cent of new values, based on a weighted average calculation method.
Meanwhile, there were 126,622 petrol vehicles sold (down 4.5 per cent) compared to 191,204 listed (up 0.8 per cent) and 63,866 diesels shifted (down 2 per cent) versus 105,620 up for sale (down 0.3 per cent).
Of those, the best-selling models were the Ford Ranger and Toyota HiLux utes, with the Toyota Corolla and Toyota RAV4 closely behind.
Overall used-car sales in Australia dropped by 3 per cent to 202,355, while the number of listings grew by 1 per cent to 317,861 – and the average days to sell increased from 46.4 days to 49 days – showing it's still a buyer's market as supply continues to outstrip demand.
"When it comes to fuel types, petrol and diesel cars still account for almost 95 per cent of all sales. However, consumers are gradually turning towards more fuel-efficient options with a greater variety and more affordable options now available," said Mr Voortman.
"As is to be expected in an oversupplied market, retained values remain on a downward trajectory with every vehicle segment across every age category experiencing a drop in value for the month.
"Retained values of used EVs in the one- to three-year-old category have declined, while the older models appear to hold their value better."
Holding their money the best in the internal combustion-engined passenger car space were the Kia Picanto city car at 95.6 per cent in those aged two- to four-years-old, while the Toyota Yaris remains unbeatable in the five to seven-year-old category at 95.4 per cent.
In the SUV category, the Suzuki Jimny continued to lead in both categories at 113.4 per cent and 114.0 per cent respectively.
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