Over the past few years, used car prices in Australia have experienced noticeable shifts. What was once a relatively stable market has become more dynamic, influenced by global supply issues, changing consumer behaviour, and broader economic conditions. Understanding these trends can help car owners, buyers, and sellers make more informed decisions.
Below is a closer look at what’s driving used car prices in Australia and where the market appears to be heading.
How the Used Car Market Changed After 2020
The Australian used car market saw a sharp rise in prices following 2020. Supply chain disruptions, factory shutdowns, and semiconductor shortages significantly reduced the availability of new vehicles. As a result, many buyers turned to the used car market, pushing demand well beyond supply.
This imbalance caused used car prices to surge, with some vehicles selling for prices close to — or even higher than — their original retail value. While this level of inflation has eased, prices have remained higher than pre-2020 norms.
Current Market Conditions
In recent months, used car prices have started to stabilise, though they haven’t returned to historical averages. Several factors continue to shape the market:
Gradual recovery in new car supply, improving availability
Higher interest rates, reducing borrowing capacity for some buyers
Cost-of-living pressures, influencing how much consumers are willing to spend
While demand has softened slightly, well-maintained vehicles, utes, and fuel-efficient cars continue to hold strong value.
Which Vehicles Are Holding Their Value?
Not all used cars are affected equally. Certain categories continue to perform better in the resale market:
Dual-cab utes and light commercial vehicles, especially those suited to trade and regional use
Fuel-efficient cars, including small hatchbacks and hybrids
Reliable Japanese brands, known for longevity and lower maintenance costs
Vehicles with full service histories, low kilometres, and minimal cosmetic damage consistently attract higher resale prices.
Brisbane and Queensland Market Insights
Queensland’s used car market, particularly in Brisbane and surrounding regions, remains active. Population growth, infrastructure projects, and demand from tradies and commuters continue to support strong resale values.
Many owners looking to sell older, damaged, or unwanted vehicles are choosing faster alternatives to private sales. For those exploring current vehicle values or disposal options in Brisbane, https://www.cashforcarbrisbane.com.au/ provides insight into how market conditions translate into real-world offers.
The Impact of Electric Vehicles on Used Car Prices
The growing adoption of electric vehicles is beginning to influence the used car market. While EV resale values vary widely depending on battery condition and model, some petrol and diesel vehicles are starting to depreciate faster as buyers consider future fuel costs and emissions regulations.
That said, EVs currently make up a small portion of the overall used car market, meaning traditional vehicles still dominate pricing trends.
What This Means for Car Owners
For current car owners, today’s market still presents relatively strong resale opportunities compared to historical averages. However, prices are becoming more sensitive to vehicle condition, age, and running costs.
If a car is nearing the end of its usable life or requires expensive repairs, holding onto it may no longer make financial sense as the market continues to rebalance.
Looking Ahead
While extreme price spikes appear to be behind us, used car prices in Australia are unlikely to drop dramatically in the near future. Instead, a slow return to more balanced pricing is expected, shaped by economic conditions, fuel trends, and consumer preferences.
Staying informed about market movements can help buyers avoid overpaying and sellers maximise value at the right time.
