Australia Used Car Market Projected to Reach USD 217.42 Billion by 2034

Australia Used Car Market Overview:
Australia's used car market is undergoing a fundamental transformation, driven by the rapid digitization of vehicle sales, a decisive shift toward dealer-led transactions, surging secondhand EV demand, and evolving consumer expectations for transparency and certification. The Australia used car market size reached USD 85.54 Billion in 2025. Looking forward, the market is expected to reach USD 217.42 Billion by 2034, exhibiting a growth rate (CAGR) of 10.37% during 2026-2034. The market encompasses all pre-registered passenger vehicles, light commercial units, SUVs, and specialty automobiles transacted through organised dealers, certified platforms, and private seller channels, covering gasoline, diesel, and other fuel types (hybrid, PHEV, EV, LPG) sold through organised and unorganised vendor types across online and offline sales channels. Vehicle types include hatchbacks, sedans, sports utility vehicles, and others spanning the regions of Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia. Rising affordability concerns, digital marketplace innovation, growing certified pre-owned programs, expanding used EV availability, and consumer protection reforms are some of the key factors driving market growth throughout the forecast period.

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Australia Used Car Market Summary:
• Dealer-led transactions surged from 39.1% of the market in 2024 to 48.6% by end of 2025, reaching over 50.5% by March 2026. This structural shift is being driven by a surge in sophisticated PayID and 'remote buyer' sc@ms across private sale platforms, with Sc@mwatch receiving 346 reports of vehicle sc@ms totaling $288,459 in losses in the first quarter alone, pushing buyers toward the security of licensed dealers.

• The ACCC received over 1,000 reports about second-hand cars between July 2024 and June 2025, with over 80% related to consumer guarantee issues. This regulatory spotlight is driving industry-wide improvements in transparency, inspection standards, and after-sale support, benefiting organised dealers and certified platforms.

• Used EV sales more than doubled in March 2026, jumping from 3,176 units in February to 7,557 units as fuel prices spiked. Auction house Pickles reported its best month ever for EVs with a 20% uptick in secondhand sales, while available used EV stock fell 38%, leaving just 28.6 days of supply - signaling a rapidly tightening market.

• Australian Automotive Dealer Association data show 1.59 million used-car listings in H1 2025, with 1.13 million completed sales. National used-car sales in December 2025 totaled 171,837 vehicles, while total active listings slipped 1.7% to 308,315 vehicles with average days to sell increasing to 47 days.

• Carma, the digital used vehicle platform, partnered with the NRMA as its exclusive recommended used car dealership in May 2025, following its AUD 75 million Series A fundraise led by General Catalyst Partners and Tiger Global. The NRMA partnership gives Carma access to 2.8 million NRMA members across New South Wales and the ACT.

• Market segmentation covering gasoline (61.4% share), diesel (28.3%), and other fuel types across organised (57.2%) and unorganised (42.8%) vendor types, sold through online and offline channels spanning hatchbacks, sedans, SUVs, and other vehicle types.

• Carsales launched 'carsales Approved' certification powered by RedBook Inspect, requiring vehicles to be less than 10 years old, under 160,000 km, and rated four stars or higher on inspection - setting a new benchmark for used car quality assurance that is professionalizing the digital marketplace.

• Eagers Automotive, through its easyauto123 brand, commands a significant national share and leverages centralized reconditioning hubs. Its October 2025 capital tie-up with Mitsubishi Corporation provides expansion capital and upstream procurement leverage, signaling further consolidation in the organised dealer segment.

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Key Trends Shaping the Australia Used Car Market:
• Decisive shift from private sales to dealer-led transactions: The used car market is experiencing a structural transformation, with dealer-led transactions growing from 39.1% in 2024 to over 50.5% by March 2026. This shift is fundamentally driven by rising sc@m activity on platforms like Gumtree and Facebook Marketplace, with PayID fraud and 'remote buyer' schemes eroding consumer confidence in private sales. Buyers are increasingly willing to pay a premium for dealer guarantees, inspections, and consumer protection coverage.

• Digital marketplace innovation and certification programs: Online channels are booking the strongest growth at 13.1% CAGR, with Carsales dominating the digital funnel through powerful listing tools and the new 'carsales Approved' certification program. Digital platforms are leveraging machine-learning valuations, integrated finance offers, and video walk-throughs. Meanwhile, CARS24 is establishing physical handover hubs, and Carma's NRMA partnership gives it access to 2.8 million members.

• Surging secondhand EV demand: Used EV sales more than doubled in March 2026, with Pickles auction house reporting its best EV month ever. Available used EV stock fell 38% to just 28.6 days of supply, creating a supply-demand imbalance that is stabilizing residual values after a period of softening. The 'others' fuel segment (hybrid, PHEV, EV) is the fastest-growing at approximately 14.5% CAGR.

• Price normalization after pandemic-era highs: The market ended 2025 with easing sales momentum, tighter listings, and average days to sell increasing to 47 days in December. Retained values softened slightly across most age brackets as pricing normalizes from the elevated post-pandemic conditions. However, in-demand SUV nameplates continue to demonstrate strong value retention and quick selling times.

• Consolidation and institutional investment in organised segment: Eagers Automotive's capital tie-up with Mitsubishi Corporation, Carma's AUD 75 million Series A, and CAR Group's (carsales) continued platform dominance signal growing institutional investment in the organised used car segment. The organised vendor segment holds 57.2% market share and is gaining as consumer trust in private sales declines.

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Market Growth Drivers:
Digital Transformation, Certification Standards, and Consumer Trust
Australia's used car market is being fundamentally reshaped by the digitization of vehicle transactions and the parallel rise in consumer demand for trust, transparency, and certification. Online sales channels are growing at 13.1% CAGR - the fastest among all segments - as platforms like Carsales, Carma, and CARS24 leverage machine-learning valuations, integrated finance offers, and video walk-throughs to streamline the buying journey. Carsales' launch of 'carsales Approved' certification - requiring vehicles under 10 years old, under 160,000 km, and rated four stars or higher on RedBook Inspect assessment - is setting new industry benchmarks for used car quality assurance. The shift toward organised dealers (57.2% market share, up from 39.1% in 2024 to 50.5% by March 2026) is being accelerated by rising PayID sc@ms and consumer guarantee concerns, with the ACCC receiving over 1,000 used car complaints in FY2024-25. Carma's strategic partnership with the NRMA as its exclusive recommended used car dealership, backed by its AUD 75 million Series A from General Catalyst and Tiger Global, exemplifies how digital-first players are building institutional trust through mainstream brand partnerships. These forces are professionalizing the market and creating competitive advantages for platforms and dealers that invest in inspection, certification, and transparent pricing.

Affordability Dynamics, Used EV Surge, and Market Diversification
Affordability remains the fundamental driver of used car demand in Australia, with rising new car prices, cost-of-living pressures, and housing affordability challenges pushing more consumers toward the pre-owned market. The market recorded 1.59 million listings and 1.13 million completed sales in H1 2025, demonstrating the scale and velocity of used car transactions. Pricing is normalizing after the elevated conditions of recent years, with retained values softening across most segments and average days to sell reaching 47 days - creating a more buyer-friendly environment that is expanding the addressable market. The most dramatic growth story is the secondhand EV segment, where sales more than doubled in March 2026 (from 3,176 to 7,557 units) as fuel prices spiked. Pickles reported its best EV month ever, while available used EV stock dropped 38% to just 28.6 days of supply. The 'others' fuel segment (hybrid, PHEV, EV, LPG) is growing at approximately 14.5% CAGR - the fastest among fuel types. Regionally, Australia Capital Territory & New South Wales leads with 35.7% market share, while Western Australia is the fastest-growing region. Eagers Automotive's capital tie-up with Mitsubishi Corporation and the continued expansion of certified pre-owned programs from major manufacturers like BMW and Toyota are further professionalizing the market and driving growth across both value and premium used car segments.

Market Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the Australia used car market, along with forecasts at the country and regional levels from 2026-2034. The market has been categorized based on fuel type, vendor type, vehicle type, sales channel, and region.

By Fuel Type:
• Gasoline
• Diesel
• Others

By Vendor Type:
• Organised
• Unorganised

By Vehicle Type:
• Hatchbacks
• Sedan
• Sports Utility Vehicle
• Others

By Sales Channel:
• Online
• Offline

By Region:
• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Western Australia
• Northern Territory & Southern Australia

Key Players:
The Australia used car market features competition among digital marketplace platforms, organised dealer groups, online-only retailers, classified advertising networks, and certified pre-owned programs from major OEMs. CAR Group Limited (carsales.com) dominates the digital funnel with its 'carsales Approved' certification program. Carma has emerged as a disruptive digital-first player with AUD 75 million in Series A funding and an exclusive NRMA partnership. CARS24 is expanding its online-to-physical model with handover hubs. BMW Group and Toyota operate certified pre-owned programs. Eagers Automotive (easyauto123) commands significant national share with centralized reconditioning hubs and a Mitsubishi Corporation capital tie-up. Other key players include Nine Entertainment Company (Drive.com.au), Only Sales Limited, and Gumtree. The market research report provides a comprehensive analysis of the competitive landscape including key player positioning, market structure, top winning strategies, competitive dashboards, and detailed company profiles.

Key Aspects Required for the Australia Used Car Market:
• Demand spans individual consumers seeking affordable personal transport, families upgrading or downsizing vehicles, first-time buyers, small business fleet operators, and ride-share drivers. With 1.59 million listings and 1.13 million completed sales in H1 2025, the market processes a massive transaction volume driven by affordability pressures and housing market dynamics.

• Growth is balanced between the dominant gasoline segment (61.4% share) and the rapidly expanding 'others' segment (hybrid, PHEV, EV) growing at approximately 14.5% CAGR. Used EV sales more than doubled in March 2026 with just 28.6 days of supply remaining, signaling a tightening market that will sustain price stabilization.

• The organised dealer segment (57.2% share) is gaining strongly at the expense of unorganised/private sales, driven by rising sc@m activity and consumer demand for inspections, warranties, and consumer guarantee protections. Dealer transactions reached 50.5% by March 2026, up from 39.1% in 2024.

• Buyers prioritize vehicle condition transparency, inspection certification, competitive pricing, finance availability, warranty coverage, and after-sale support. The launch of 'carsales Approved' (RedBook Inspect, under 10 years, under 160,000 km, 4-star rating) is setting new consumer expectations for quality assurance.

• Online sales channels are the fastest-growing at 13.1% CAGR, with digital platforms investing in machine-learning valuations, video walk-throughs, integrated finance, and seamless handover experiences. However, offline transactions still account for 75.21% of trades, confirming that test drives and physical inspection remain critical.

• The competitive landscape features CAR Group/carsales (digital dominance), Carma (NRMA partnership, $75M Series A), CARS24 (online-to-physical), Eagers Automotive/easyauto123 (Mitsubishi tie-up), BMW and Toyota CPO programs, and classified platforms like Gumtree and Drive.com.au.

• Distribution channels include digital marketplaces (carsales, Carma, CARS24), franchise dealer pre-owned programs, independent used car dealers, auction houses (Pickles, Manheim), private sales (Facebook Marketplace, Gumtree), and emerging sell-only services simplifying vehicle disposal.

• Consumer protection frameworks including state dealer licensing requirements, ACCC consumer guarantee enforcement, and industry certification programs are building market trust while creating compliance costs that favor organised, well-capitalized players over informal sellers.

Recent News and Developments:
April 2026: Used EV prices surged in Australia amid a fuel crisis, with secondhand EV demand more than doubling and available stock falling 38% to just 28.6 days of supply, as consumers rapidly shifted toward electric alternatives in the pre-owned market.

March 2026: Used EV sales jumped from 3,176 in February to 7,557 in March 2026, with auction house Pickles reporting its best month ever for secondhand EVs, marking a 20% uptick over February and signaling a potential structural shift in secondhand vehicle preferences.

March 2026: Dealer-led used car transactions reached over 50.5% of total market volume, continuing the structural shift from private sales driven by sophisticated PayID sc@ms and 'remote buyer' fraud schemes that have eroded consumer confidence in peer-to-peer platforms.

October 2025: Eagers Automotive secured a capital tie-up with Mitsubishi Corporation for its easyauto123 used car brand, providing expansion capital and upstream procurement leverage to strengthen its national market position.
May 2025: Carma partnered with the NRMA as its exclusive recommended used car dealership, gaining access to 2.8 million NRMA members across New South Wales and the ACT, following its AUD 75 million Series A fundraise from General Catalyst Partners and Tiger Global.

2025: Carsales launched the 'carsales Approved' certification program powered by RedBook Inspect, requiring vehicles under 10 years old, under 160,000 km, and four-star inspection ratings, establishing a new quality benchmark for Australia's digital used car marketplace.

2025: The ACCC received over 1,000 reports about second-hand cars between July 2024 and June 2025, with over 80% related to consumer guarantee issues, intensifying regulatory focus on used car dealer practices and consumer protection standards.

2025: National used car sales in December 2025 totaled 171,837 vehicles with average days to sell reaching 47 days, as the market ended the year with easing momentum, tighter listings, and normalizing prices after the elevated post-pandemic period.

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