Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 76.97 Billion |
Market Size (2030) | USD 124.64 Billion |
CAGR (2025 - 2030) | 10.12 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Australia Used Car Market Analysis
The Australia Used Car Market size is estimated at USD 76.97 billion in 2025, and is expected to reach USD 124.64 billion by 2030, at a CAGR of 10.12% during the forecast period (2025-2030).
The Australian used car market is experiencing significant transformation driven by digital innovation and changing consumer behaviors. With internet penetration reaching 91% of the population in 2022, online used car platforms have revolutionized how consumers search for and purchase used vehicles. This digital shift has led to more transparent pricing mechanisms and enhanced customer experiences through virtual tours and remote inspections. The integration of advanced technologies has enabled buyers to access detailed vehicle histories, comprehensive inspection reports, and comparative pricing data, making the purchase process more informed and efficient.
The market has witnessed substantial price dynamics and supply chain developments, particularly in the fuel sector. In 2022, Australia's gasoline and diesel imports reached historical highs of approximately 166,000 barrels per day and 480,000 barrels per day, respectively, significantly influencing used car preferences and valuations. Wholesale used vehicle prices demonstrated remarkable growth, increasing by 37% above pre-pandemic levels, reflecting the strong demand and limited supply conditions in the market. These price movements have reshaped consumer purchasing patterns and dealer inventory management strategies.
The certified used car (CPO) vehicle segment has emerged as a crucial market component, with major manufacturers expanding their CPO programs to meet growing consumer demand for quality-assured used automobiles. For instance, Audi Australia has enhanced its Approved Plus pre-owned program by offering minimum two-year servicing, warranty, and roadside assistance packages, while implementing rigorous 115-point inspection protocols. Similarly, Toyota's Certified Pre-Owned program has gained significant traction by maintaining strict eligibility criteria and comprehensive 90-point inspections for vehicles under 10 years old with fewer than 160,000 kilometers.
The market landscape continues to evolve with the expansion of online marketplaces and innovative business models. As of 2023, platforms like Cartopia have listed over 7,000 used cars, demonstrating the growing significance of digital marketplaces in the industry. The emergence of subscription-based services and flexible ownership models has introduced new dynamics to the market, catering to changing consumer preferences for more adaptable and convenient vehicle access options. These developments have been accompanied by enhanced financing solutions and value-added services, making used car ownership more accessible to a broader consumer base.
Australia Used Car Market Trends
Quality Assurance is Driving Market Growth in the Country
The increasing focus on quality assurance and certification processes has become a major driver for Australia's used car market. Leading used car dealerships are implementing comprehensive quality check systems and offering extensive warranty coverage to build consumer confidence. For instance, in May 2023, Byrne Ford, a prominent dealership in Northern Brisbane, reported that their used car sales had doubled over 2021 and 2022, primarily attributed to their rigorous used car inspection processes and warranty programs. The provision of various warranties and protection plans for already rigorously quality-checked and tested cars has become a standard practice among reputable dealers, significantly influencing consumer purchase decisions.
The certification and quality assurance processes have evolved to become more sophisticated and comprehensive, addressing various aspects of vehicle condition and performance. Dealers are now conducting detailed mechanical inspections, providing transparent vehicle history reports, and offering extended warranty coverage to ensure customer satisfaction. This trend is particularly evident in the certified used car segment, where vehicles undergo extensive pre-purchase inspections and are reconditioned to meet stringent quality standards. These certified vehicles typically come with comprehensive warranties that protect owners against unexpected repairs and cover routine maintenance costs, making them an increasingly attractive option for consumers seeking reliability and peace of mind.
Consumer Favorable Government Regulations for Used Cars
The Australian government has implemented a robust regulatory framework that provides significant consumer protection in the used motor vehicle market. The Australian Consumer Law (ACL) forms the cornerstone of these regulations, outlining comprehensive consumer rights and obligations that apply to used car sales. Under the ACL, consumers are entitled to expect that a used car will be of acceptable quality, suitable for its intended use, and consistent with any descriptions or advertisements. Additionally, changes to the ACL in 2018 have made it easier for consumers to pursue legal action against car dealers and manufacturers in cases of defects or other issues, increasing accountability in the market.
The government has also established state-specific regulations and infrastructure to enhance consumer protection and market transparency. For instance, New South Wales requires all used cars offered for sale to have a current roadworthy certificate, ensuring minimum safety standards are met. The implementation of the Personal Property Securities Register (PPSR) enables consumers to verify whether a used vehicle has any financial encumbrances or security interests before purchase. Furthermore, the government has established clear guidelines regarding the import of secondhand cars, ensuring that imported vehicles comply with local safety and environmental standards. These regulations specify requirements for minimum vehicle age, acceptable emission levels, and mandatory safety features, creating a more structured and reliable market environment for consumers.
Segment Analysis: Vendor Type
Unorganized Segment in Australia Used Car Market
The unorganized segment continues to dominate the Australian used car market, commanding approximately 59% of the total market revenue in 2024. This segment comprises individual sellers, small dealerships, and car markets operating outside the formal regulatory framework. The segment's dominance can be attributed to several factors, including lower prices, greater flexibility in negotiations, and a wider variety of vehicle options. However, the segment faces challenges related to transparency in pricing, vehicle condition verification, and history documentation. The cash-based nature of transactions in this segment makes it difficult to track and regulate, though this very aspect attracts price-sensitive buyers looking for better deals. Despite these challenges, the unorganized segment maintains its market leadership position due to its extensive network of sellers and the ability to offer competitive pricing across various vehicle categories.
Organized Segment in Australia Used Car Market
The organized segment is experiencing rapid growth in the Australian used car market, projected to expand at approximately 12% CAGR from 2024 to 2029. This growth is primarily driven by increasing consumer preference for certified and pre-inspected used vehicles that undergo thorough inspection and certification processes. The segment is witnessing significant transformation through the adoption of digital technologies and online platforms, making the car buying process more transparent and convenient for customers. Major players in this segment are investing in advanced inspection technologies, warranty programs, and after-sales services to build customer trust. The organized segment's growth is further supported by the rising demand for reliable used automobiles with verifiable history and condition reports, particularly among urban consumers who prioritize quality and reliability over price considerations.
Segment Analysis: Fuel Type
Gasoline Segment in Australia Used Car Market
The gasoline segment continues to dominate the Australian used car market, commanding approximately 61% of the total market revenue in 2024. This significant market share can be attributed to several factors, including the widespread availability of gasoline-powered vehicles and the well-established refueling infrastructure across the country. Gasoline cars remain popular among Australian consumers due to their higher performance in terms of acceleration and handling compared to other fuel types. The extensive network of gasoline stations throughout Australia makes these vehicles a practical choice for both urban and rural drivers. Additionally, the relatively lower maintenance costs and familiar technology associated with gasoline engines continue to drive consumer preference for these vehicles in the used car market.
Electric Segment in Australia Used Car Market
The electric vehicle segment in the used car market is experiencing remarkable growth, projected to expand at approximately 27% annually from 2024 to 2029. This substantial growth is being driven by increasing environmental awareness, government incentives, and improving charging infrastructure across Australia. The Australian Government's National Electric Vehicle Strategy, announced in 2023, has been instrumental in paving the way for greater EV affordability and accessibility. The strategy focuses on expanding charging station networks and providing various incentives to encourage EV adoption. Additionally, the growing availability of used electric vehicles from early adopters trading up to newer models is helping to make EVs more accessible to a broader range of consumers in the secondary market.
Remaining Segments in Fuel Type
The diesel and other fuel type segments continue to play important roles in the Australian used car market. Diesel vehicles remain particularly popular in the commercial and heavy-duty vehicle sectors, offering superior fuel efficiency and torque for long-distance travel and heavy loads. The other fuel types segment, which includes hybrid, compressed natural gas (CNG), and liquefied petroleum gas (LPG) vehicles, represents a smaller but significant portion of the market. These alternative fuel vehicles offer unique advantages in terms of environmental impact and operating costs, particularly in specific use cases such as fleet operations and urban transportation.
Segment Analysis: By Body Type
SUV Segment in Australia Used Car Market
The Sports Utility Vehicle (SUV) segment dominates the Australian used car market, commanding approximately 66% of the total market revenue in 2024. The segment's dominance can be attributed to several factors, including improved road infrastructure, which has led to increased consumer preference for SUVs when traveling to different places. The emergence of sub-compact SUVs has offered many possibilities to dealers as these models come with both performance and budget considerations. Popular models in this segment include the Hyundai Tucson, Honda CR-V, Kia Sorento GT Line, Mazda CX-5 Akera, and Toyota C-HR Hybrid. In the luxury and premium classes, the BMW X-series, Audi Q-series, Mercedes G-series, and Volvo XC-series remain highly sought after. The segment's growth is further supported by OEM authorized dealers who have established their own used car dealerships, providing greater car quality, price assurance, and purchase guarantees, making it particularly attractive for SUV enthusiasts.
Sedan Segment in Australia Used Car Market
The sedan segment represents a significant portion of the Australian used car market, with strong growth potential driven by evolving consumer preferences and market dynamics. The purchasing power of middle-class consumers has enabled greater access to sedan ownership, making it an attractive option in the used car market. Sedans offer improved comfort features such as rear AC vents and rear armrests due to additional interior space, along with better seat support for enhanced passenger comfort. The segment's appeal is particularly strong among youth and businesses who prefer vehicles that balance luxury with reasonable comfort levels. Despite facing competition from other segments, sedans maintain their appeal due to their lower ownership costs compared to SUVs and trucks. The segment's growth is further supported by certified pre-owned programs from major manufacturers, offering warranties and quality assurance that boost buyer confidence.
Remaining Segments in Body Type
The hatchback and Multi-Purpose Vehicle (MPV) segments complete the Australian used car market's body type categorization, each serving distinct consumer needs. Hatchbacks are particularly popular in urban areas due to their compact size, making them ideal for city driving and parking in tight spaces. They also appeal to first-time car buyers and those prioritizing fuel efficiency and affordability. The MPV segment, while smaller, maintains its relevance by catering to larger families and businesses requiring additional passenger capacity and cargo space. These vehicles are valued for their versatility and practical design, offering flexible seating arrangements and substantial storage options. Both segments continue to evolve with technological advancements and changing consumer preferences, maintaining their importance in the overall market structure.
Segment Analysis: Sales Channel
Offline Segment in Australia Used Car Market
The offline sales channel continues to dominate the Australian used car market, commanding approximately 74% of the total market revenue in 2024. This substantial market share can be attributed to consumers' persistent preference for traditional brick-and-mortar dealerships, where they can physically inspect and test drive vehicles before making a purchase. The offline segment benefits significantly from established dealership networks, certified pre-owned programs, and the ability to provide immediate customer service and support. Many consumers still value the personal interaction and negotiation opportunities that offline channels provide, particularly when making significant investments in used vehicles. Additionally, offline dealerships have strengthened their position by offering value-added services such as extended warranties, insurance, after-sales services, and comprehensive paperwork assistance, making them a one-stop destination for used car buyers across Australia.
Online Segment in Australia Used Car Market
The online used car segment is experiencing remarkable growth in the Australian used car market, projected to expand at approximately 12% annually through 2024-2029. This accelerated growth is driven by increasing digital adoption among consumers and the convenience of virtual car shopping platforms. Online used car platforms are revolutionizing the used car buying experience by implementing advanced technologies for virtual tours, remote inspections, and comprehensive digital documentation processes. The segment's growth is further supported by the integration of artificial intelligence for better price predictions, enhanced search capabilities, and personalized recommendations. Many traditional dealers are also establishing strong online presences, creating omnichannel experiences that combine the convenience of digital platforms with the reliability of established dealerships. The trend towards online used car buying is particularly strong among younger consumers who prefer digital-first experiences and appreciate the transparency and comparison capabilities offered by online platforms.
Australia Used Car Industry Overview
Top Companies in Australia Used Car Market
The Australian used car market features a mix of established players, including Carsales.com Limited, Cars24, Carsguide Autotrader, Gumtree, and certified pre-owned programs from major automotive manufacturers like Toyota and BMW. Companies are increasingly focusing on digital transformation through enhanced online platforms and virtual showroom experiences to improve customer engagement. Market leaders are investing in quality assurance programs and comprehensive vehicle inspection processes to build trust with consumers. Strategic partnerships between online platforms and traditional used car dealerships are becoming more common to create seamless omnichannel experiences. Companies are also expanding their service offerings to include financing options, extended warranties, and after-sales support to provide end-to-end solutions for customers. The integration of advanced technologies like AI-powered pricing tools and virtual reality experiences is emerging as a key differentiator in the market.
Dynamic Market Structure with Growing Consolidation
The Australian used car market exhibits a fragmented structure with a significant presence of both organized and unorganized players, though the unorganized sector currently holds a larger market share. Traditional brick-and-mortar dealerships are increasingly facing competition from digital-first platforms that are disrupting the conventional sales model. The market is witnessing a gradual shift towards consolidation as larger players acquire smaller competitors to expand their geographical presence and enhance their technological capabilities. The emergence of manufacturer-backed certified pre-owned programs has introduced a new dimension of competition, particularly in the premium segment where brand trust plays a crucial role in consumer decision-making.
Recent market developments indicate an increasing trend of mergers and acquisitions, particularly in the digital space, as companies seek to strengthen their online presence and expand their service portfolios. The acquisition of Gumtree, Carsguide, and Autotrader Group by The Market Herald represents a significant consolidation move in the digital classifieds segment. Global players are also showing interest in the Australian market, as evidenced by the entry of international platforms like Cars24, bringing new competition and innovative business models to the market. The market is seeing a gradual professionalization of the unorganized sector as smaller players adopt digital tools and standardized processes to remain competitive.
Innovation and Trust Drive Future Growth
Success in the Australian used car market increasingly depends on building consumer trust through transparency and reliable vehicle certification processes. Market incumbents are focusing on developing comprehensive digital platforms that provide detailed vehicle histories, independent inspections, and guaranteed buyback options to differentiate themselves. The integration of emerging technologies like blockchain for vehicle history verification and artificial intelligence for pricing optimization is becoming crucial for maintaining a competitive advantage. Companies that can effectively combine digital capabilities with physical infrastructure while maintaining operational efficiency are likely to gain market share.
For new entrants and smaller players, success lies in identifying and serving niche market segments or specific geographical areas with targeted value propositions. The ability to offer innovative financing solutions, flexible ownership models, and superior customer service will be critical differentiating factors. The market is likely to see increased regulatory oversight regarding vehicle quality standards and consumer protection, particularly in online transactions. Companies that can proactively adapt to evolving regulatory requirements while maintaining operational efficiency will have a competitive advantage. The growing focus on environmental sustainability and the transition to electric vehicles will also influence market dynamics, requiring players to adapt their business models and inventory management strategies accordingly. The used car dealership sector is poised to benefit from these trends by aligning their offerings with consumer expectations.
Australia Used Car Market Leaders
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Car24
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Carsguide Autotrader Media Solutions Pty Ltd.
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Gumtree AU Pty Limited
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Cartopia Pty Ltd
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Carsales.com Limited
- *Disclaimer: Major Players sorted in no particular order
Australia Used Car Market News
- March 2023: Hyundai Australia announced that it has begun selling used Ioniq 5 models on its company’s website, beginning with 23 vehicles initially.
- May 2023: Sojitz Corporation acquired full ownership of Albert Automotive Holdings Pty Ltd, which operates a wholesale and retail used car business as part of Dutton Group.
Australia Used Car Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Drivers
- 4.1.1 Quality Assurance is Driving Market Growth in the Country
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4.2 Market Restraints
- 4.2.1 Trust and Transparency in Used Car Remained a Key Challenge for Consumers
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4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Vendor Type
- 5.1.1 Organized
- 5.1.2 Unorganized
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5.2 Fuel Type
- 5.2.1 Petrol
- 5.2.2 Diesel
- 5.2.3 Electric
- 5.2.4 Others
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5.3 Body Type
- 5.3.1 Hatchback
- 5.3.2 Sedan
- 5.3.3 Sport Utility Vehicle and Multi-Purpose Vehicle
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5.4 Sales Channel
- 5.4.1 Online
- 5.4.2 Offline
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 Cars24
- 6.2.2 HELLOCARS SUBSCRIPTION PTY LTD
- 6.2.3 Carsguide Autotrader Media Solutions Pty Ltd
- 6.2.4 Drive (Nine Entertainment Co. Pty Limited)
- 6.2.5 Gumtree AU Pty Limited
- 6.2.6 Cartopia Pty Ltd
- 6.2.7 Carsales.com Limited
- 6.2.8 Toyota Certified Pre-Owned Vehicle
- 6.2.9 Brighton Suzuki Brighton
- 6.2.10 BMW Premium Certified
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Australia Used Car Industry Segmentation
A pre-owned vehicle or a secondhand car is a vehicle that has previously had one or more retail owners. A certified pre-owned (CPO) vehicle is a pre-owned vehicle that has been extensively inspected (pre-purchase inspection) and expertly reconditioned.
The Australian used car market has been segmented by vendor type, fuel type, body type, and sales channel. By vendor type, the market is segmented into organized and unorganized. By fuel type, the market is segmented into gasoline/petrol, diesel, electric, and others. By body type, the market is segmented into hatchback, sedan, and sport utility vehicle and multi-purpose vehicle. By sales channel, the market is segmented into online and offline.
The report covers the market size and forecasts the value (USD) for all the above segments.
Vendor Type | Organized |
Unorganized | |
Fuel Type | Petrol |
Diesel | |
Electric | |
Others | |
Body Type | Hatchback |
Sedan | |
Sport Utility Vehicle and Multi-Purpose Vehicle | |
Sales Channel | Online |
Offline |
Australia Used Car Market Research FAQs
How big is the Australia Used Car Market?
The Australia Used Car Market size is expected to reach USD 76.97 billion in 2025 and grow at a CAGR of 10.12% to reach USD 124.64 billion by 2030.
What is the current Australia Used Car Market size?
In 2025, the Australia Used Car Market size is expected to reach USD 76.97 billion.
Who are the key players in Australia Used Car Market?
Car24, Carsguide Autotrader Media Solutions Pty Ltd., Gumtree AU Pty Limited, Cartopia Pty Ltd and Carsales.com Limited are the major companies operating in the Australia Used Car Market.
What years does this Australia Used Car Market cover, and what was the market size in 2024?
In 2024, the Australia Used Car Market size was estimated at USD 69.18 billion. The report covers the Australia Used Car Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Australia Used Car Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Our Best Selling Reports
Australia Used Car Market Research
Mordor Intelligence provides a comprehensive analysis of the used car and used vehicle industry, drawing on decades of expertise in automotive market research. Our detailed report explores the evolving landscape of used car dealership networks, online used car platforms, and traditional automotive resale channels. The analysis covers various segments, including luxury used car offerings, certified used car programs, and the used commercial vehicle market. From used automobile trends to imported used car dynamics, our research offers granular insights. These insights are available in an easy-to-read report PDF format for download.
Stakeholders across the secondhand car industry benefit from our actionable intelligence on used car financing options, used car auction platforms, and used car inspection protocols. The report examines used car trading patterns, used car retail strategies, and used auto market dynamics, offering valuable insights for decision-makers. Our analysis of used motor vehicle segments provides comprehensive coverage of market dynamics, growth drivers, and emerging opportunities. This is supported by robust data and expert analysis that assists industry participants in making informed strategic decisions.