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Why the Australian used car market is growing online
The way Australians buy and sell used cars has changed more in the past few years than in the previous few decades. What was once a process built around classified ads, weekend forecourt visits, and face-to-face haggling is increasingly happening from a phone or laptop, with cars being researched, evaluated, purchased, and delivered without a single showroom visit. The numbers behind that shift are significant and still growing.
The used car market in Australia is large and growing
Australia's used car market accounted for approximately 2.3 million transactions in 2025, according to industry data from AutoGrab. That makes the used car market significantly larger than the new car market by volume, and the gap continues to hold.
More supply is coming too. In the first half of 2025, the number of used cars listed for sale increased by more than 30% compared to the same period in 2024, as the backlog of new cars sold during the supply-constrained COVID years began flowing into the used market. This means more choice for buyers, more competition for sellers, and a market that is increasingly price-transparent. For anyone who bought a used car at an inflated COVID-era price, this is also the environment in which they're now trying to sell.
Online channels are growing the fastest
While physical dealerships and private sales still represent the majority of used car transactions in Australia, online channels are growing at a significantly faster pace than offline alternatives. Buyers who once needed to visit a forecourt to assess a car are now able to access standardised inspection reports, detailed photography, and independent data from their phone before making a purchase decision.
The shift has several reinforcing drivers that have compounded over time:
Price transparency. When comparable cars from multiple sellers are visible on the same screen, overpricing becomes immediately obvious. Whether someone is shopping for pre-owned Ford vehicles or a used Mazda, the data is there for buyers to compare before they make a single enquiry. Buyers are better informed than they have ever been, which puts pressure on sellers to price accurately or sit unsold.
