Australian Used Car Sales Surge in January 2026 Despite Supply Constraints

According to the Australian Automotive Dealer Association (AADA), 188,421 used cars were sold in January, reflecting a strong start to the year. AADA CEO James Voortman noted that the lift in sales suggests buyers have returned to the market after the typical December slowdown. However, he also pointed out that conditions remain more balanced than the highs observed in previous years.

One significant trend is the growing demand for alternative powertrains. Hybrid vehicle sales increased by 15.3%, while electric vehicle (EV) sales climbed by 20.1% month-on-month. This shift indicates a steady growth in consumer interest towards lower-emission options in the used car market.

The Ford Ranger maintained its position as Australia's top-selling used vehicle, continuing its consistent run at the head of the models leaderboard. This highlights the enduring popularity of utility vehicles among Australian consumers.

Despite the increase in sales, vehicles are taking longer to sell compared to the low point observed in September 2025. The average days to sell rose to 49.4 days, suggesting that consumers are taking their time and shopping carefully. This trend points to a more balanced market and more cautious buyer behavior.

For consumers considering purchasing a used vehicle, the current market conditions offer both opportunities and challenges. While the increase in sales indicates strong demand, the tightening supply may lead to higher prices and limited options. Prospective buyers are advised to conduct thorough research and consider a range of vehicles to find the best fit for their needs and budget.

Overall, the January 2026 data reflects a dynamic used car market in Australia, characterized by increasing sales, a shift towards alternative powertrains, and a more measured approach by consumers in their purchasing decisions.