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The split between private and dealer used-car sales is nearly even as 2025 data shows more customers are turning to car-yards to buy their next vehicle.
Australian used-car buyers have shifted massively towards dealer transactions in the last 12 months, new data shows, with the second-hand market now almost evenly split with private sales.
The Australian Automotive Dealer Association’s (AADA’s) latest Automotive Insights Report (AIR) shows the massive swing towards dealer sales in 2025, which accounted for 48.6 per cent of transactions compared to only 39.1 per cent the prior year.
However, private used-car sales still made up the majority of dealings at 51.4 per cent, but 2025’s percentage is a noticeably slide from 2024’s 60.9 per cent figure.
Although the 2025 split between dealer and private sales is a record, the AADA has only been recording used-car data since 2023.
“Given the relatively short time frame the reports have been released, we wouldn’t characterise it as a long-term ‘record’, but it is a clear step-up compared to recent years and a notable shift in how Australians are buying used cars,” AADA Chief Executive Officer James Voortman told Drive.
“We believe during COVID, private sales were elevated as supply shortages and price volatility pushed more people to sell directly.
“What we’re seeing now is a reversion from that unusually high private-sale period, rather than a sudden change from a stable baseline.”
However, there are other factors pushing buyers away from private listings and towards dealers too, Voortman said.
“Consumer trust could be part of the story, there has been a growing awareness of scams and misrepresentation on some online marketplaces,” Voortman told Drive.
“[Dealers could be more attractive due to] statutory warranties and dealer-backed guarantees provide confidence for buyers, especially when they’re taking a significant financial commitment in a complex vehicle.”
In total, there were around 1,125,677 used-car dealer sales in 2025 out of the 2,316,208 recorded total.
“Ultimately, dealers are benefiting from a combination of convenience, confidence and supply,” Voortman said.
“Strong new-car sales over the past two years have flowed through to higher-quality used stock in dealerships, while buyers are placing more value on transparency, consumer protections and after-sales support.
“In a more balanced used-car market, those factors matter more, and that’s working in favour of dealers.”
Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.
