The Australia Used Car Market size is estimated at USD 69.90 billion in 2024, and is expected to reach USD 113.19 billion by 2029, growing at a CAGR of 10.12% during the forecast period (2024-2029).
The used car market in Australia has been growing steadily over the years and has become a key part of the automotive industry. According to industry reports, sales of used cars in Australia surpassed sales of new cars in recent years. Factors driving the growth of the used car market include affordability, availability, and consumer preferences.
The used car market in Australia is expected to continue to grow, driven by factors such as affordability, availability, and changing consumer preferences. However, the exact scope of future growth will depend on a variety of factors, including the health of the economy, consumer preferences, and government policies affecting the automotive industry.
Due to the increasing digitization and the ability of companies to provide immersive purchase experiences remotely, the Australian used car market is expected to witness significant growth. Furthermore, the rise in the value-added service offering and the variety of finance providers offering credit for used cars will also contribute to the growth of the used car market in the region. However, the higher interest rates might turn around some potential customers, restricting the market’s growth.
Internet penetration in Australia is relatively high, with the country having one of the highest rates of internet use in the world, primarily attributed to the availability of high-speed internet at affordable prices. These characteristics are gradually being used by used car owners to advertise their vehicles and share information about their vehicles online. This has improved the sales process and allows more parties to sell and buy autos.
Many multi-brand and independent dealerships are expected to develop their online presence to participate in the online used vehicle market. Some dealerships are investing in their websites and Instagram pages in addition to advertising used car inventory on internet marketplaces. Used vehicle platforms are likely to focus on establishing a transactional marketplace to enable 100% online end-to-end transactions without having to visit showrooms from the comfort of their homes.
Online platforms have been increasingly growing because they are connecting various vehicle sellers and groups like independent dealers and private owners with customers. These platforms are expanding their presence in the region to increase their market share and revenues. For instance,
Demand for gasoline-powered vehicles is seen showcasing positive impacts in Australia, yet the segment is experiencing the biggest challenges for its longer-term growth potential. Australia is on the verge of adopting electric vehicles to restore its dependency on cleaner and greener fuels. This shift shall reduce the demand for petrol-based vehicles between 2024 and 2029. However, in the short term, demand for gasoline-powered vehicles remains on the positive side, showcasing strong demand in sedan and SUV segments.
Further, the cost difference between a liter of diesel and a liter of gasoline is significantly less, eliminating the financial benefit diesel automobiles were thought to provide. Diesel automobiles are no longer as attractive as they once were due to rising upfront costs and high fuel prices. This is despite the fact that diesel engines are more fuel-efficient than gasoline ones.
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The Australian used car market is fragmented, with a few key players in the market being Cars24, Carsguide Autotrader Media Solutions Pty Ltd, Gumtree AU Pty Limited, Cartopia Pty Ltd, Carsales.com Limited, and Toyota Certified Pre-Owned Vehicle. The majority of players in the Australian used car market engage in fierce competition by employing a variety of developments and strategies to capture market share and attract customers. For instance,
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