The used vehicle market is on fire in 2025 and will not cool down soon. From tighter new car supply to savvy buyer preferences, a perfect storm of trends drives record-breaking growth in the pre-owned car space. If you are wondering whether now is the right time to buy or sell a used car, the data says – absolutely. Let’s explore why the used vehicle market is booming, what this means for you as a car owner or buyer and how you can make smart decisions in today’s fast-evolving auto landscape.
The Surge in Used Vehicle Demand: What’s Fueling It?
Listed below are several factors driving the used car industry growth in 2025.
- Rise in new car prices: High inflation and supply chain costs have pushed new car prices beyond reach for many.
- Delay in new car production: Global chip shortages and factory slowdowns have made new cars harder to find.
- Change in consumer mindset: Today’s buyers are more open to buying used cars, prioritising reliability and value over having the latest model.
- Sustainability concerns: A pre-owned car creates fewer carbon emissions than manufacturing a new one.
As a result, Australians are flocking to dealerships and online platforms to grab quality pre-owned vehicles before prices go even higher.
Used Car Industry Trends to Watch in 2025
Here are the second-hand car trends shaping the market:
1. Certified Pre-Owned (CPO) Vehicles Are More Popular
CPO vehicles, backed by warranties and dealer inspections, are becoming the go-to option for peace of mind. More buyers want the security of a manufacturer-backed used vehicle without the premium price of new.
2. SUVs and Utes Dominate
Used SUVs and Utes are seeing strong resale demand, especially models known for longevity.
3. EVs Enter the Used Scene
As electric vehicles (EVs) age from their first ownership cycle, more are entering the used market. Buyers are snapping up EVs at more accessible prices, helping grow this segment significantly.
4. Online Buying Is the Norm
From research to delivery, more of the used car journey now happens online. Dealerships that offer end-to-end digital support are outpacing those that don’t.
Used Car Industry Growth: The Stats Speak
According to market reports, Australia’s used car industry growth has reached double digits for the third consecutive year. Compared to 2023, 2025 has seen:
- A 12% increase in used car sales nationwide.
- Higher vehicle resale value across all segments.
- Reduced inventory turnaround time, cars are selling faster than ever.
This trend isn’t just a reaction to global economic pressures; it’s a sign of lasting change in how Australians buy and value their vehicles.
Why Buyers Are Valuing Resale More Than Ever
Your car is no longer just a tool for getting from one location to another; it’s an asset with solid vehicle resale value.
Buyers think long-term and make choices based on which models hold better value. Key factors affecting resale value include:
- Brand reputation
- Service history
- Fuel efficiency
- Safety ratings
- Tech features
Benefits for Sellers in 2025
If you consider upgrading, now is a prime time to sell your used vehicle.
- You can get more than expected for well-maintained cars.
- Trade-in deals are stronger as dealers try to keep inventory flowing.
- Private listings are moving quickly, especially for popular models and clean service histories.
If you own a 3 to 6-year-old vehicle with moderate mileage, it could be worth significantly more today than a year ago.
Why This Boom Isn’t Slowing Down
The combination of high demand, low supply, and shifting consumer preferences means that the used car industry’s growth will continue well into the future. As more Australians embrace sustainability and financial benefits, the used vehicle market will remain a strong player in the economy. That’s good news for buyers, sellers, and businesses alike.
Ride the Used Vehicle Wave with Acacia Automatics
If you are buying your first used vehicle or preparing to sell your current car, 2025 is the year to act. The market is hot, values are high, and opportunities are everywhere for smart decision-makers like you. At Acacia Automatics, we help you make clear, confident moves in this booming landscape. With over 25 years of expertise, we have earned a reputation for providing reliable, honest, and specialised automatic transmission services in Sydney. From expert servicing to advice on what car to buy next, our team is passionate about keeping you moving forward, reliably and affordably. Join thousands of satisfied drivers who rely on Acacia Automatics to learn how we can support your journey in the thriving world of used vehicles.