Australia Used Car Market to Grow with a CAGR of 10.21% through 2030

Rising demand for affordable mobility, increasing online vehicle sales platforms, and a growing preference for used luxury cars are the factors driving the market in the forecast period 2026–2030.

According to TechSci Research report, “Australia Used Car Market – By Region, Competition, Opportunities and Forecast, 2020-2030F”, The Australia Used Car Market was valued at USD 71.64 Billion in 2024 and is expected to reach USD 128.37 Billion by 2030 with a CAGR of 10.21% during the forecast period.

The Australian used car market is poised for significant growth, driven by several evolving factors such as changing consumer preferences, economic pressures, and technological advancements. The increasing shift toward vehicle affordability, especially with rising new car prices, is encouraging consumers to explore the used car segment. This market is further bolstered by a heightened demand for reliable, cost-effective vehicles, as Australian consumers seek economical alternatives to brand-new cars, particularly amid economic uncertainty. Buyers are becoming more discerning, favoring used cars that offer low depreciation rates and higher durability, particularly in the mid-to-high-end segments. As fuel efficiency and eco-friendly vehicle options become a priority, there is rising interest in hybrid and electric used vehicles.

The market is also seeing a transformation in how vehicles are bought and sold. Traditional brick-and-mortar dealerships are adapting to digital platforms, which enable consumers to compare vehicles online, access detailed service histories, and make transactions with ease. With the rise of e-commerce in the automotive space, online marketplaces, augmented by AI-driven tools, allow buyers to explore a wider inventory without geographic limitations. These platforms also offer convenience, enabling consumers to check the condition, history, and pricing of vehicles before committing to a purchase, thus driving market growth.

A notable driver of market expansion is the increasing importance of certified pre-owned (CPO) vehicles, offering consumers peace of mind with warranties, vehicle inspections, and quality assurances. These programs are bridging the gap between the desire for affordability and the demand for quality. Furthermore, the rise of vehicle subscription models and leasing options is reshaping ownership structures, providing consumers with more flexible and short-term alternatives to traditional ownership. The growth of these flexible ownership models is attracting younger, urban buyers who prioritize convenience and lower financial commitments.

However, the market is not without its challenges. One key issue is the variability in vehicle condition and lack of standardization in certification and inspection processes across the industry. This often leads to consumer hesitation, as buyers are wary of potential hidden defects or subpar vehicle conditions. Additionally, supply chain constraints and longer wait times for new vehicle production have resulted in a supply-demand imbalance, which, while stimulating used car sales, has also inflated prices, making it difficult for some buyers to afford their preferred models. The challenge of managing vehicle pricing transparency and ensuring consistent quality across different platforms remains critical to sustaining buyer trust and market growth. Despite these obstacles, the Australian used car market is adapting with enhanced digital solutions and shifting consumer attitudes, positioning it for continued growth in the coming years.

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Australia Used Car Market Is Segmented by Vendor, Vehicle Type, Sales Channel, and By Region.

​In 2024, the online sales channel is expected to be the fastest-growing segment in the Australian used car market. As digital platforms continue to gain popularity, buyers are increasingly opting for online transactions due to the convenience, transparency, and variety these platforms offer. The ease of browsing a wide selection of vehicles, accessing detailed information, and conducting price comparisons from the comfort of home is driving more consumers to shift their purchasing behavior toward online platforms. With enhanced digital tools such as AI-based pricing algorithms, vehicle history reports, and virtual tours, online platforms are delivering a seamless and trusted shopping experience. This trend is particularly appealing to tech-savvy, younger buyers, who are more comfortable navigating online spaces and value the time-saving aspect of digital transactions. As a result, the online sales channel is gaining market share and is set to outpace the traditional offline model in terms of growth in 2024.

Among the various regions in Australia, Queensland is anticipated to be the fastest-growing in the used car market in 2024. The state's robust population growth, coupled with its strong economic performance, is fueling the demand for vehicles, particularly in the used car sector. Queensland's vast landscapes and long driving distances make cars, especially those in the affordable segment, a necessity for many residents. Furthermore, the state's increasing interest in environmentally friendly vehicles, such as hybrids and electric vehicles, is contributing to the market's expansion. Queensland's favorable climate for road trips and outdoor activities also boosts the demand for SUVs and other versatile vehicles. The growing number of online car dealerships in Queensland, along with increasing consumer comfort with digital transactions, has further accelerated the adoption of online sales, further driving the region’s rapid growth. With these factors in play, Queensland is set to lead the charge in the used car market's expansion across Australia in 2024.

Major Market Players Operating in Australia Used Car Market Are:

• Global Cars Aus Pty
• HELLOCARS SUBSCRIPTION PTY LTD
• Carsguide Autotrader Media Solutions Pty Ltd
• Drive (Nine Entertainment Co. Pty Limited)
• Gumtree AU Pty Limited
• Carsales.com Limited
• Cartopia Pty Ltd
• Toyota Motor Corporation Australia Limited
• Pickles Auctions Pty Limited
• BMW Premium Certified

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Leasing returns are a key driver for supplying high-quality used cars into the market. As businesses, fleets, and individual consumers increasingly choose to lease vehicles rather than buy them, a growing number of cars will enter the used car market after their lease periods end. These cars are often in great condition with low mileage, making them highly desirable to buyers. Leasing return programs, such as those run by major manufacturers, allow dealerships to access well-maintained vehicles that typically come with factory warranties and a complete service history. This trend ensures a continuous influx of desirable pre-owned vehicles that meet the needs of a wide range of buyers, providing a solid foundation for used car dealerships", said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“Australia Used Car Market By Vendor (Organized, Unorganized), By Vehicle Type (Hatchback, Sedan, Sports Utility Vehicle (SUV), Multi-Purpose Vehicles (MPVs)), By Sales Channel (Online, Offline), By Region, Competition, Opportunities and Forecast, 2020-2030F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the Australia Used Car Market.

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