Valuation & Pricing 4 min read

Used Car Market Australia 2025: What's Happening to Prices?

Used car prices surged in 2021–2022 and have been correcting since. Here's the state of the market in 2025 and what it means if you're selling.

Where the market stands in 2025

The extreme seller's market of 2021–2022 has largely normalised. By 2024–2025, used car prices in Australia have corrected 10–20% from their peaks, though they remain above pre-2020 levels in most segments.

Key dynamics shaping the 2025 market:

  • **Interest rates.** Elevated rates reduce purchasing power, putting downward pressure on prices.
  • **Increased supply.** New car delivery times have returned to normal, reducing demand for second-hand alternatives.
  • **EV transition.** Electric vehicles are creating value uncertainty in petrol and hybrid segments.
  • **Ute strength.** HiLux, Ranger, and BT-50 remain in strong demand and are resisting the broader correction.

What this means if you're selling now

If you bought in 2019 or earlier, you're likely still ahead — values remain above pre-2020 levels for most mainstream segments. If you bought in 2021–2022 at peak pricing, you may be selling at a small loss relative to purchase price.

The key question for sellers: what is the car worth now relative to current market comparables — not what you paid. Use Redbook, CarsGuide, and Carsales current listings to calibrate your expectations.

Frequently asked questions

Are used car prices still going up in 2025?

No — prices have been gradually correcting since late 2022. Some segments (utes, popular SUVs) are holding value better than others (European sedans, high-end luxury).

Is 2025 a good time to sell my car?

It's still a reasonable time to sell. Values remain above 2019 levels in most segments. Waiting for the market to recover to 2022 peaks is likely a long wait that may not materialise.

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