2025 has rolled around before we could blink and with it comes the question: is it a good time to search the second-hand car market? We’ll start with the TL:DR: it’s likely to be a buyer’s market this year – so good news if you’re looking to buy a pre-loved vehicle!

Of course there are a few factors that to consider, including:

• The movement of the used car market
• An influx of brands and models in the new car market, which could free up second-hand stock, plus
• The cost of living and what might happen with interest rates this year.

We asked Carma’s Director of Buying, Peter Willis, what he sees for the year ahead. “Over my career, high-quality used cars have always been in demand – whether it’s as a second car, or for a savvy buyer who is dollar conscious. That being said, most of 2024 was a correcting market. 2025 should certainly represent more value for buyers.” We’re seeing some price-cooling effects already, with the used car market showing slower moving stock and lower retained values late last year.

The busy new car market will probably have an impact, as Peter mentions: “With more offerings from manufacturers, this may bring people back to the second-hand market to trade their car which they may have held off through the years of shortage. With visibility to the volumes of new cars, there is an expectation the market will shift heavily, which in some near-new cases will be true.” In other words – look out for better availability of second-hand cars that are almost new.

Does that mean you can expect bargain-basement prices across the board? Probably not, but there won’t be as many of those eye-watering prices of recent years. That being said, there is still a shortage of a particular vehicle type in the second-hand car market:

Quality 3-5 year-old used cars are still hot property

As Peter explains, the market is still feeling the effects of all that pandemic disruption when it comes to cars manufactured from around 2020 to 2022: “The traditional 3-5 year old high-quality used car is going to be increasingly hard to find. This is due to the shortages across the supply chains in those years. This will mean the competition for that car in the market should be high and maintain a fairly good value.” Some good news for any owners planning to sell their well-maintained cars of this age.

So what’s popular in used cars?

The Ford Ranger and Toyota Hilux were still taking out Australia’s top used car spots as of December 2024, according to AADA and AutoGrab’s Automotive Insights Report, with the Toyota Corolla and RAV4 following in popularity. In fact, Toyota models took out four of the top 10 spots when it came to sales late last year, indicating a healthy demand for the Toyota brand – and perhaps its reputation for reliability!

Of course if you’re looking for the best used cars on the market this will depend on what you’re looking for, but as in 2024 we’re expecting to see plenty of interest in dependable and economical vehicles in the wake of cost-of-living pressures. If interest rates start to ease, perhaps this might start to change what’s hot in used cars.

What about EVs? Are there electric deals to be found?

The EV market has seen a bit of a shake-up in 2024: not just here in Australia, but also around the world. A growing supply of new electric vehicles in recent months has meant that some EV owners are offloading their current models, which could mean better availability and used car prices for those wanting a second-hand EV in 2025. As Peter explains:

“Interest in EVs has been very steady over the last couple of years; people can see a new way and want to embrace it. We are seeing new price points for EVs, with the entry of new players and existing players pressing hard to be the number one choice.

“The competition will be ongoing and have an effect on the market and EVs in general – which I feel is a great opportunity for used EV buyers who are looking for value.”

Indeed, this is reflected in the latest Automotive Insights Report, with second-hand MG MG4s taking out the top spot with a 15.1% month-on-month sales increase.

But in 2025, anything goes

By which we mean, the only sure thing about this year is that nobody knows what will happen for sure. With unpredictability around international trading conditions and interest rates, there could be many factors affecting the used vehicle market this year! All we know for sure is that Carma will continue to deliver high-quality, thoroughly-checked, and fairly-priced used cars to savvy buyers. Why not take a look for yourself?