Hybrid and electric vehicles rev up second-hand market

Australians' blooming love affair with fuel-efficient vehicles is sweeping into the second-hand car market, with figures showing hybrid and electric models are wooing more candidates.

But plug-in hybrid electric cars are rising in popularity fastest, with the vehicles becoming the only type to post an increase in sales.

The Australian Automotive Dealer Association and AutoGrab released the findings on Tuesday in a report that also revealed second-hand car sales fell during December and were taking longer to sell.

Hybrids lift new vehicle sales

The news comes one week after data showed new vehicle sales grew slightly during 2025, pushed higher by hybrid and plug-in hybrid purchases.

The Automotive Insights Report analysed second-hand vehicle sales across private and dealer listings in December, and found Australians bought 171,837 cars during the month - down by 11 per cent compared to November.

Sales fell across all Australian states and territories, although the biggest drops were in Queensland (14.8 per cent), the Northern Territory (14.6 per cent) and NSW (12.7 per cent).

The number of cars listed for sale also fell by 1.7 per cent during the month and took an average of 47 days to sell, which association chief executive James Voortman said was evidence of a cooling market.

"December capped off a year where momentum in the used car market steadily eased," he said.

"Longer days to sell are now a clear trend, reflecting more price sensitivity among buyers and a more balanced market environment compared to the heightened conditions of recent years."

EVs and hybrids lift market share

Low-emission vehicles such as electric, hybrid and plug-in hybrid cars all increased their share of the used market compared to December 2024, Mr Voortman said, and represented 8.9 per cent of all second-hand cars sold.

Plug-in hybrid vehicles were the only vehicle type to record growth during December – up by 30.3 per cent – although they rose from a low base.

Electric cars retained more of their value in December, at 82.9 per cent, but took longer to sell than all cars at an average of 53.8 days.

Tesla vehicles were the most sought-after EVs, with its Model 3 topping the sales chart followed by the Model Y, while BYD Atto 3 ranked in third place.