If you are shopping for a used car this November, the numbers are finally swinging your way – unless that car happens to run on a battery. Across Australia, more stock is sitting on dealer lots than buyers are snapping up, and that shift in supply and demand is translating into real discounts for petrol and diesel buyers. Electric and hybrid vehicles, though, are telling a very different story.
Australia’s used vehicle market recorded 1,300,018 sales in the first half of 2026, down 6.6% on the same period last year. The slide was not gentle or steady either – January was still running ahead of 2025, but by June sales had fallen 16.2% year-on-year, the steepest monthly drop of the half. Every state and territory sold fewer used cars than it did twelve months earlier.
More room to haggle, especially on petrol and diesel
For buyers, that softening has shown up directly in the price tag. By June 2026, more than half of all used vehicles aged one to five years had their asking price cut before sale, and the average discount had widened to 3.7% – the deepest discounting recorded during the half. Petrol and diesel cars copped the steepest rise in markdowns, while hybrids held their value better than any other fuel type.
Australian Automotive Dealer Association (AADA) chief executive James Voortman said the shift has handed buyers the upper hand. “The used vehicle market has become increasingly competitive during the first half of 2026. Buyers have more choice than they’ve had for some time, and dealers are responding to that environment through more competitive pricing and discounting,” he said.
Electric and hybrid models bucking the trend
While petrol and diesel used-car prices soften, electrified vehicles are moving in the opposite direction. Used electric vehicle (EV) sales climbed 54.6% year-on-year in the first half of 2026, and used plug-in hybrid (PHEV) sales jumped 468.4%, albeit from a small starting base. Together with conventional hybrids, electrified vehicles now make up 7.1% of all used sales nationally.
They are selling faster too. The average time a used electric vehicle spent on a dealer’s lot fell from more than 60 days in January 2026 to under 40 days by June. Voortman said the trend reflects a genuine change in buyer appetite. “While overall sales have softened compared with last year, it’s encouraging to see continued growth in used electric vehicles and plug-in hybrids as more Australians consider lower-emission vehicles in the second-hand market,” he said.
Utes holding strong, passenger cars doing the heavy lifting
Not every category has felt the downturn equally. SUVs and utes recorded smaller sales falls than passenger cars, which absorbed the bulk of the market-wide decline – good news if you are selling an SUV, less so if you are trying to move a sedan or hatch. For buyers eyeing a dual-cab ute, strong supply has created genuine room to negotiate.
AutoGrab’s Saxon Odgers, describing the same dynamic from a previous downturn, said the logic still applies. “While demand remains strong for utes, the price of used LCVs is easing. With great supply, there is room for buyers to be choosy when it comes to choosing a second-hand ute,” Odgers said.
There is a lesson in the other direction too. Back in 2023, when new-car wait times for some models stretched beyond 12 months, the Suzuki Jimny topped the used-value rankings at 135.2% retention for cars aged two to four years – meaning some owners could sell their Jimny for more than they originally paid. It is a reminder that a squeeze on new-car supply can still prop up used prices for specific models, even while the broader market softens.
What to check before you sign
A dealer’s trade-in offer and an insurer’s market value are two different numbers answering two different questions, so get both confirmed separately rather than assuming one tells you the other. Make, model, age, kilometres, condition and local demand will move the real price a seller gets more than any national trend reported here.
Before handing over a deposit, confirm the car’s service history, check for outstanding recalls, and clarify what statutory guarantee or dealer warranty applies to your specific purchase. With more listings on the market than a year ago, there is also more variation between near-identical cars, so it pays to compare like for like rather than take the first offer.
Odgers summed up what all this means for anyone with cash in hand this November: “For people looking to buy a used car, you’ll likely find your dollar going further and potentially be able to buy a newer model than you expect.” For older Australians weighing up a trade-in or a first look at a hybrid, that is about as good a moment to be shopping as the market has offered in years.
