Are Used Car Prices Still Falling in Australia in 2026? What Buyers Need to Know

If you've been watching the Australian used car market and wondering whether to buy now or wait for prices to fall further, you're asking exactly the right question. After years of pandemic-era price spikes that left used cars selling for more than new ones, the correction is finally underway. But it's not as simple as "prices are falling — wait it out." The answer depends on what you're buying, where you're buying it, and how long you're prepared to wait.

This guide gives you a clear, honest picture of where Australian used car prices stand in 2026, what's driving the correction, which segments are falling fastest, and how to use the current market to your advantage — whether you're a buyer or a seller.

Where Used Car Prices Actually Stand in 2026

The headline figure is striking: Australian used car prices remain approximately 49% higher than pre-COVID (pre-2020) levels, despite two years of gradual correction. This means that if a 3-year-old Toyota Camry cost $22,000 in 2019, comparable examples are still selling for around $32,000–$33,000 in 2026. The pandemic-era surge was so severe that even a sustained correction hasn't fully unwound it.

That said, the direction of travel is clear. Data from CarExpert, Carsales, and the Australian Automotive Dealer Association shows that average used car transaction prices have been falling steadily since mid-2023. The correction accelerated in 2025 and has continued into 2026, driven by a combination of normalising new car supply, softening consumer demand, and increased stock availability across dealer networks.

The practical implication: you will pay less for a used car today than you would have 18 months ago, but you will still pay significantly more than you would have in 2019. For most buyers, this means the market is no longer at peak insanity — but it hasn't fully reset either.

Why Are Prices Still High?

Several structural factors are preventing a full reversion to pre-COVID price levels. First, inflation has permanently raised the cost of almost everything — labour, parts, logistics, dealer overheads — and new car prices have risen substantially, which sets a higher floor for used car pricing. Second, the Australian dollar has remained under pressure against the Japanese yen and US dollar, keeping import costs elevated. Third, Australian wages have risen since 2020, which means buyers can afford more — and dealers price accordingly.

The result is a market that feels like it's correcting, because it is, but where absolute prices remain well above what many buyers expected. A buyer who has been waiting three years for "normal" prices may be waiting for a number that no longer exists in any meaningful sense.

Which Segments Are Falling Fastest?

Electric vehicles: The fastest-falling segment in 2026. New EV prices have dropped dramatically — BYD's Atto 3 launched under $45,000 in 2023 and now competes with models under $40,000. As new EVs get cheaper, used EV prices have been pressured down substantially. A 2022 Hyundai Ioniq 5 that retailed for $73,000 new can be found used for $42,000–$48,000 in 2026 — a drop of 35–40% from peak used car pricing in 2022–2023. For EV buyers, the current market is genuinely favourable.

Large SUVs and prestige vehicles: The premium end of the market has softened more than the mainstream. Rising interest rates have squeezed buyers who would have stretched to a $70,000–$90,000 used prestige SUV. Models like used BMW X5, Mercedes GLE, and Audi Q7 are trading at 15–25% below their 2022 peaks.

Near-new vehicles (0–2 years old): New car supply has normalised completely, meaning there is no longer any reason to pay above retail for a near-new used car. This segment has corrected sharply and near-new discounts are now available where premiums once existed.

Most price-resilient segment: Reliable mainstream Japanese utes and SUVs — specifically the Toyota HiLux, Ford Ranger, and Toyota RAV4 — continue to hold value better than almost any other segment. Genuine supply constraints and fierce demand from tradespeople and families mean these models haven't fallen as far. A 2023 HiLux SR5 Double Cab with 30,000km is still commanding $55,000–$60,000.

Is Now a Good Time to Buy?

For most buyers, yes — the current market is significantly better than 2021, 2022, or early 2023. Here's the honest breakdown:

If you want an EV: Now is probably the best time that has ever existed to buy a used electric vehicle in Australia. Prices have corrected sharply, range anxiety has reduced with better infrastructure, and you can get genuine long-range EVs for $40,000–$55,000 that would have cost $70,000–$80,000 two years ago. The only caveat: battery technology is improving rapidly, so waiting another 12–18 months will bring further depreciation on current models. If you have a specific use case (commuting, reducing fuel costs), the numbers work now.

If you want a popular ute or SUV: Don't expect significant price drops. HiLux, Ranger, and RAV4 supply remains constrained enough to support current pricing. Waiting is unlikely to reward you with substantially cheaper pricing on these models. Buy when you find a good example at a fair price — use TrueCarPrice to verify what buyers are actually paying before you commit.

If you're flexible on model: The best value in 2026 is in the segments that have fallen furthest — mainstream EVs, near-new models, and prestige SUVs. Buyers who were determined to own a specific popular model are paying a premium for that preference; buyers who are open to alternatives are finding excellent value.

Seasonal Timing: When Do Prices Dip?

Beyond the structural market trend, seasonal patterns create buying windows. The end of financial year (late June) is consistently the strongest period for used car deals, as dealers push to hit annual targets and move stock before the new financial year. Winter months (July and August) see reduced buyer demand, which gives negotiating leverage. The February–March plate release period creates a dip as new model arrivals make previous-year stock less desirable.

In practice, the difference between the best and worst months to buy is approximately 3–8% on price — meaningful on a $40,000 car (that's $1,200–$3,200), but not a reason to wait six months if you find the right car today. The bigger lever is always the individual car and your negotiating position, not the calendar.

How to Use the Current Market as a Buyer

The pandemic seller's market — where dealers could name any price and buyers had to take it — is over. You now have genuine negotiating power in most segments. Use it. Dealers have more stock, longer days-to-sell, and more pressure to move units. A reasonable opening offer of 8–12% below asking price will be entertained in most cases, where it would have been laughed off in 2022.

The most important tool you have is real transaction data — not asking prices. What sellers list cars for and what buyers actually pay are different numbers in a softening market, often by 5–15%. TrueCarPrice publishes actual transaction data for Australian used cars, giving you a real benchmark before you walk into any negotiation. Knowing that buyers in your state paid $34,500 for the same car a dealer is asking $38,000 for changes every conversation.

The Verdict for 2026

Used car prices in Australia are falling, but they haven't fully corrected to pre-COVID levels and may never completely do so. The best opportunities right now are in EVs, near-new vehicles, and premium SUVs where the correction has been sharpest. The worst strategy is waiting indefinitely for prices to "return to normal" — that baseline has permanently shifted. The best strategy is to understand what the market is actually doing in your specific segment, know what buyers are genuinely paying, and negotiate from a position of data rather than hope.

Use TrueCarPrice to check real transaction prices before you buy. In a market where asking prices and actual prices diverge, that information is the difference between a fair deal and an expensive mistake.