Australia Used Car Market: Driving Toward a USD 197 Billion Future by 2033
The Australia used car market size was valued at USD 77.2 Billion in 2024. Looking forward, the market is expected to reach USD 197 Billion by 2033, exhibiting a CAGR of 10.80% from 2025-2033.
Market Overview
According to IMARC Group’s latest research, the Australia used car market was valued at USD 77.2 billion in 2024 and is projected to soar to USD 197 billion by 2033, reflecting a strong CAGR of 10.80% during 2025–2033.
This remarkable expansion is driven by rising vehicle costs, economic pressures, affordability concerns, and a surge in demand for quality pre-owned vehicles. Online platforms and flexible financing solutions have digitized and simplified the purchasing process, making used cars more accessible and trustworthy.
How Digital Transformation Is Reshaping the Market
• Online Marketplaces: The online segment is booming, with digital platforms providing transparent pricing, vehicle histories, and virtual inspections—all enabling buyers to make informed decisions conveniently.
• Certified Pre-Owned (CPO) Programs: Programs by automakers offering warranties and quality assurance are boosting consumer confidence and helping standardize expectations.
• Digitized Financing: Expanding loan availability and flexible finance terms are empowering more consumers to consider used vehicles as affordable mobility solutions.
• Trust via Transparency: Enhanced vehicle condition reports, inspection systems, and resale data are reducing uncertainty in transactions, aligning buyer-seller expectations.
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Key Trends Driving Market Growth
1. Affordability vs. New Car Costs
Economic constraints and escalating new car prices are steering buyers toward value-driven used options.
2. SUV Dominance & Fuel Type Evolution
SUVs account for a major share of the market, while petrol vehicles lead in 2024. However, electric vehicles (EVs) are the fastest-growing segment—highlighting a gradual shift toward alternative fuel options.
3. Vendor Structure
Organized dealers hold a majority market share, but independent semi-organized vendors are catching up, expanding at a projected 9.6% CAGR through 2030.
4. Offline Still Leads, Online Rising
Offline sales dominate at around 74% in 2024, though online channels are rapidly growing at a CAGR of 17.2%.
5. Regional Shifts
New South Wales represents the largest share (~30.5%), while Queensland is the fastest-growing region, expected to expand at nearly 5.9% CAGR.
Growth Factors Fueling Expansion
• High Demand Driven by Economic Pressure
With new vehicle affordability constrained, consumers see used cars as practical alternatives. Rising fees for ownership and fuel-efficient choices further reinforce this trend.
• Digital and Hybrid Retail Models
Traditional dealers are adapting by integrating online tools, offering virtual services and hybrid retail models to stay competitive.
• Eco-Conscious Choices & Financing Options
Increasing environmental awareness and diverse financing mechanisms are broadening the appeal of used cars across demographics.
• EV Resale Challenges & Market Diversification
Oversupply and depreciation challenges have impacted EV resale values, particularly for Teslas and other battery-electric vehicles, with older models suffering steep value drops compared to petrol cars.
Leading Players and Market Activity
IMARC Group identifies key players across the full spectrum:
• BMW Group Australia (Premium Certified)
• Carma (ClickCar Australia)
• CARS24
• Carsales.com Limited
• Cartopia (Only Cars)
• Drive.com.au
• Gumtree Australia
• HelloCars Subscription
• Pickles Auctions
• Toyota Australia (Certified Pre-Owned).
A notable development: In August 2024, Uber and Car Empire launched a pilot initiative in Brisbane and Gold Coast to increase access to pre-owned EVs for Uber driver partners, including financing incentives—supporting Uber’s goal toward zero emissions by 2040.
Market Segmentation
By Vehicle Type
• Hatchbacks
• Sedans
• SUVs
• Others.
By Vendor Type
• Organized
• Unorganized (independent sellers).
By Fuel Type
• Petrol
• Diesel
• Others (including EVs, hybrids).
By Sales Channel
• Offline (dealerships)
• Online (marketplaces, apps).
By Region
• NSW & ACT
• Victoria & Tasmania
• Queensland
• NT & SA
• Western Australia.
Read Australia used car market report
Regional Insights
New South Wales leads in revenue share, whereas Queensland is the fastest-growing market. Western Australia, Victoria, and Tasmania continue steady performance, reflecting demand consistency across urban and suburban regions.
Recent Developments
• 2024: The used car market experienced a strong year with 2.32 million units sold—a 12.1% increase over 2023—though momentum eased late in the year, signaling a stabilized market outlook in 2025.
• EV Resale Pressures: Certain used EVs, especially Teslas, face weakened resale values due to rapid new-car discounting and battery depreciation concerns.
• Supply-side Disruptions and Price Volatility: Shipping delays and geopolitical events temporarily elevated used-car prices, though increased new-car supply may lead to price normalization ahead.
Conclusion
Australia used car market is accelerating toward a USD 197 billion valuation by 2033, backed by affordability, digital transformation, and changing consumer behavior. While challenges such as EV depreciation and pricing volatility emerge, the sector’s adaptability through hybrid sales models, financing innovation, and rising eco-awareness ensures sustainable growth. By blending trust-enhancing technologies with strategic regional and segment expansion, the used car market continues to drive forward as one of Australia’s most dynamic automotive sectors.
About the Creator
Rashi Sharma
I am a market researcher.
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