Australia’s used car market is undergoing a notable transition, with a growing number of buyers opting for dealership purchases rather than private sales. New industry data indicates the gap between the two channels is closing rapidly, signaling a shift in consumer behavior.
Figures from the Australian Automotive Dealer Association (AADA) show that dealer sales accounted for 48.6% of used car transactions in 2025, up significantly from 39.1% a year earlier. In contrast, private sales declined to 51.4%, down from 60.9% the previous year.
While private transactions still represent a slight majority, the latest data highlights a clear move toward dealerships. The AADA, which began tracking this segment in 2023, said the change marks a meaningful departure from recent trends.
AADA Chief Executive James Voortman attributed the shift to a normalization of market conditions following the disruptions caused by the COVID-19 pandemic. During periods of supply shortages, private sales surged as buyers and sellers increasingly relied on direct transactions.
He noted that the current decline in private sales reflects a market correction rather than an abrupt change.
Consumer confidence is also playing a central role. Voortman said concerns over scams and misleading online listings have made buyers more cautious, prompting many to seek the added security offered by dealerships.
Dealers typically provide statutory warranties and backed guarantees, offering greater protection and reassurance for buyers making high-value purchases.
At the same time, strong new vehicle sales are supporting the trend. Australia recorded 1,245,690 new vehicle sales in 2025, according to data from the Federal Chamber of Automotive Industries and the Electric Vehicle Council. This has increased the availability of higher-quality trade-ins, strengthening dealership inventory in the used car segment.
Voortman said dealerships are benefiting from a combination of convenience, trust, and improved stock quality, adding that buyers are placing increasing importance on transparency and after-sales support.
As the used car market continues to rebalance, industry observers expect the momentum toward dealership sales to persist, particularly if supply remains stable and consumer demand for reliability and protection continues to grow.
