Australia’s used vehicle market is entering a new phase as changing buyer behaviour and broader economic conditions reshape demand, according to auction and marketplace company Pickles.
In its latest Quarterly Automotive Report, Pickles said the second quarter of 2026 was one of the most challenging in recent years, with geopolitical uncertainty, fuel price volatility and softer consumer confidence contributing to a more cautious approach from buyers. The company believes the slowdown reflects seasonal and economic factors rather than any long-term weakness in the market.
Pickles general manager – automotive Chris Shaw said buyers and sellers were responding to market conditions in a more measured way following several years of unusually strong trading conditions.
“While conditions are more challenging than they were during the supply-constrained years, they’re also becoming more predictable, allowing buyers and sellers to make better-informed decisions,” Shaw said.
According to Pickles, consumers are placing greater emphasis on value, running costs and long-term ownership as new vehicle availability continues to improve.
The report also identifies changing conditions in the electric vehicle market. Pickles said EVs accounted for more than 20 per cent of monthly new vehicle sales throughout the second quarter before reaching a record 24 per cent market share in June, while private EV sales increased by more than 11 per cent during the month.
Pickles believes Australia’s used EV market is also entering a more mature phase, with increasing numbers of vehicles expected to enter the second-hand market as the first wave of electric vehicles purchased under the Federal Government’s Fringe Benefits Tax-exempt novated lease scheme reaches the end of lease terms.
Shaw said Pickles expected more traditional seasonal buying patterns to return as market confidence and vehicle supply improved over the remainder of the year, with businesses that understand changing buyer demand likely to be best placed to respond.