The first time I realized SUVs had completely taken over Australia’s roads was during school pickup last autumn. Standing in the afternoon drizzle outside my daughter’s primary school in Melbourne’s eastern suburbs, I counted the vehicles filing through the congested drop-off zone. Of the next 20 cars that passed, 16 were SUVs of various sizes – from compact Mazda CX-3s to hulking Toyota LandCruisers. The humble sedan, once the quintessential family car, had become a rare sight.
This anecdotal observation reflects a broader transformation that has reshaped Australia’s automotive landscape over the past decade – a shift that has now fully permeated the used car market as well. According to the latest industry data, SUVs have cemented their position as the dominant force in Australia’s competitive second-hand car market, with buyers continuing to favor these high-riding vehicles despite economic pressures and rising living costs.
“The SUV trend isn’t just persistent – it’s accelerating,” explains James Wilson, chief analyst at AutoMarket Research, whom I interviewed via Zoom for this article. “Five years ago, SUVs accounted for approximately 38% of used vehicle transactions. Today, that figure sits at nearly 52% and shows no sign of plateauing.”
This dramatic shift raises several questions: What’s driving this continued preference for SUVs? Which models are proving most popular in the current market? And what does this dominance mean for buyers navigating today’s challenging used car landscape?
The Numbers Don’t Lie: SUV Dominance in Data
Recent market analysis reveals the extent to which SUVs have captured Australia’s used car market. According to data from major online automobile marketplaces and industry tracking services, SUVs accounted for 51.8% of all used vehicle sales in the first quarter of 2025, compared to 28.3% for passenger cars, 17.4% for utes and commercial vehicles, and 2.5% for other categories.
This represents a significant increase from just three years ago, when SUVs made up approximately 43% of the used market. The trend becomes even more pronounced when examining vehicles under five years old, where SUVs now account for nearly 58% of all transactions.
Price data further illustrates the SUV dominance. Despite overall used car prices cooling from their pandemic-era peaks, popular SUV models have maintained their value better than their sedan counterparts. The average three-year-old medium SUV now commands a 12% price premium over a comparable medium sedan with similar mileage.
During a visit to one of Melbourne’s largest used car dealerships last week, I witnessed this premium in action. A 2022 Toyota RAV4 with 45,000km on the odometer was priced at $39,990 – just $5,000 less than its original drive-away price when new. Meanwhile, a same-year Toyota Camry with similar features and lower mileage sat at $32,990.
“The RAV4 will sell within a week,” predicted sales manager David Chen as we walked through the lot. “The Camry might be here for a month, even though it’s objectively a better deal from a pure value perspective. That’s just where the market is right now.”
The Most Wanted: Australia’s Hottest Used SUVs
Not all SUVs enjoy equal demand in the used market. Analysis of search data from major automotive marketplaces and actual transaction records reveals clear preferences among Australian buyers, with several models consistently ranking as the most sought-after.
The medium SUV segment dominates in terms of both search volume and completed sales, led by the Toyota RAV4, Mazda CX-5, and Hyundai Tucson. These three models consistently rank among the five most searched vehicles across all categories nationwide, not just within the SUV classification.
“The RAV4 is particularly interesting,” notes Jessica Lee, a data analyst at a major online automotive marketplace whom I spoke with for this article. “Searches for used RAV4 hybrids exceed actual inventory by a factor of about eight to one. There simply aren’t enough of them in the used market to satisfy demand, which keeps prices extraordinarily high.”
Indeed, the hybrid variant of the RAV4 has achieved almost mythical status in the used market. During my research, I found examples of two-year-old RAV4 Hybrid Cruisers selling for more than their original new price – a phenomenon rarely seen outside of limited-production sports cars.
In the large SUV category, the Toyota Kluger, Mazda CX-9, and Hyundai Santa Fe lead the pack, with the Kia Sorento making significant gains over the past year. Meanwhile, the genuine four-wheel drive segment continues to be dominated by the Toyota LandCruiser and Prado, with the Nissan Patrol maintaining a loyal following despite fuel economy concerns.
At the premium end of the market, the Mercedes-Benz GLC, BMW X3, and Audi Q5 are the most sought-after used luxury SUVs, though data suggests buyers in this segment are more likely to opt for nearly-new vehicles rather than older models, often taking advantage of demonstrator specials or ex-corporate fleet vehicles.
When it comes to the most affordable end of the market – used SUVs under $15,000 – the Mitsubishi ASX, Nissan X-Trail, and earlier examples of the Hyundai Tucson dominate sales. These models offer the SUV experience at a more accessible price point, though finding good examples in today’s tight market requires persistence.
Why Australians Can’t Get Enough of Used SUVs
The continued preference for SUVs in the used market reflects a complex interplay of practical considerations, psychological factors, and social influences. Through interviews with buyers, dealers, and market analysts, several key drivers emerge.
Sarah Thompson, a 42-year-old nurse and mother of two from Brisbane, recently purchased a used 2021 Mazda CX-8. Her reasoning exemplifies the typical SUV buyer’s mindset.
“I was actually looking at a Mazda6 wagon initially, which had more cargo space and better fuel economy,” she explained when I caught up with her at a kids’ soccer match where both our children were playing. “But sitting in the CX-8, I just felt safer. The higher seating position gives you a better view of the road, and there’s something reassuring about having that bigger presence, especially with so many other large vehicles around.”
This perception of safety – whether objectively justified or not – remains one of the strongest motivators for SUV purchases. Market research consistently shows that “feeling safe” ranks among the top three reasons buyers cite for choosing an SUV over a conventional passenger car.
The higher seating position also appeals to Australia’s aging population. With the median age of used car buyers now at 49 years (up from 42 a decade ago), the easier ingress and egress offered by SUVs has become an increasingly important factor.
“My parents are in their 70s, and they simply struggle to get in and out of lower cars,” Thompson added. “The SUV’s height is perfect for them – no bending down or climbing up. It’s something I never considered in my 30s, but now it matters.”
Lifestyle aspirations also continue to drive SUV demand, even when the vehicle’s capabilities may exceed typical usage. The promise of weekend adventures and the Australian outdoors holds powerful appeal, even for predominantly urban drivers.
Michael Robertson, a behavioral economist specializing in consumer purchasing decisions, offered insight into this phenomenon during our conversation at a university café in Sydney.
“There’s a well-documented gap between how people imagine they’ll use their vehicles and how they actually use them,” he explained. “Most SUV owners rarely if ever take their vehicles off-road or make use of their full capabilities. But the possibility matters – it’s about identity and self-perception as much as practical transportation needs.”
This aspiration extends to the used market, where buyers often approach purchases with similar psychological motivations as new car buyers, just with modified expectations based on their budget.
The Impact of Economic Pressures
Given the ongoing cost-of-living challenges facing many Australians, the continued dominance of typically more expensive SUVs in the used market might seem counterintuitive. Rising interest rates have increased financing costs, while fuel prices remain volatile – factors that might reasonably push buyers toward more economical options.
Yet the data shows minimal evidence of buyers downsizing their SUV aspirations, though it does reveal some strategic adjustments.
“We’re seeing buyers make compromises on age, mileage, or features rather than vehicle type,” explains Chen, the dealership sales manager. “Someone who might have purchased a three-year-old RAV4 two years ago is now looking at five-year-old models, but they’re still set on getting an SUV rather than switching to a more affordable sedan.”
This observation aligns with broader market data showing that the average age of used SUVs sold has increased from 6.2 years in 2023 to 7.4 years currently, while the average mileage has risen from 87,000km to approximately 102,000km.
Financing data reveals another dimension of this trend. According to figures from major automotive finance providers, the average loan term for used SUVs has extended from 58 months in 2022 to 64 months currently, indicating that buyers are spreading payments over longer periods to maintain monthly affordability while still purchasing their preferred vehicle type.
During a Saturday morning visit to a busy used car auction in Sydney’s west, I witnessed this determination firsthand. Amongst the crowd was Mark Jenkins, a 38-year-old electrician looking to replace his aging Holden Commodore.
“My budget is $25,000 absolute max,” he told me as we waited for the SUV section of the auction to begin. “I know I could get a really nice i30 or Corolla for that, probably newer with lower k’s. But with two kids and all their sports gear, plus camping a few times a year, I’m set on getting an SUV.”
Jenkins ended up bidding on several vehicles, ultimately securing a 2018 Hyundai Tucson with 115,000km for $24,200 – at the very top of his budget and with higher mileage than he had initially hoped for. But as he explained afterward, the compromise felt worthwhile to get the vehicle type he wanted.
The Dealer Perspective: Stock Challenges Continue
For dealerships and private sellers, the strong demand for used SUVs creates both opportunities and challenges. While popular models sell quickly and often at premium prices, sourcing desirable inventory has become increasingly difficult.
“Getting good, clean SUVs for our lot is a daily battle,” explained Chen during my dealership visit. “We’re paying more at auctions, offering more on trade-ins, even directly approaching owners of desirable models we see in shopping center car parks. It’s that competitive.”
This scramble for inventory has led to evolving business practices among dealers. Many have expanded their geographic sourcing range, with metropolitan dealers increasingly looking to regional areas where vehicles might have higher mileage but better overall condition due to less stop-start driving and often more fastidious owners.
Others have developed specialized search capabilities, using data mining and even social media monitoring to identify potential sellers before they officially list their vehicles. Some larger dealer groups have even established direct buying services similar to those offered by online platforms, cutting out the middleman to secure desirable stock.
For smaller independent dealers without these resources, the competitive landscape has become increasingly challenging. During my research, I spoke with Ray Demetriou, who has operated a small used car lot in Melbourne’s northern suburbs for over 25 years.
“The game has completely changed,” he told me as we sat in his modest office, the wall behind him covered with fading photographs documenting his decades in the business. “Ten years ago, I could go to the auctions and reliably find good stock at reasonable prices. Now, the big dealers with their analytics and deep pockets snap up anything worthwhile before smaller operators get a look in.”
Demetriou has adapted by becoming more specialized, focusing specifically on smaller SUVs for first-time buyers and using his extensive community connections to source vehicles through word-of-mouth – an old-school approach that still yields results in a digitally dominated market.
The Private Seller’s Market: Pricing Complexities
For private sellers of popular SUVs, the current market presents significant opportunities, though navigating pricing has become increasingly complex. The gap between trade-in values and private sale prices has widened considerably for in-demand models, creating strong incentives for owners to sell privately despite the additional effort involved.
During my research, I posted a 2019 Mazda CX-5 Touring (borrowed from a family member) on a major classifieds site to monitor the response and gain insight into the private sale process. Within 24 hours, the listing had received 43 inquiries and 12 offers to purchase sight unseen – an indication of the intense demand for quality used SUVs.
However, determining the optimal asking price proved challenging. Online valuation tools showed variations of up to $4,500 for the same vehicle, while similar listings ranged from seemingly underpriced examples to clearly ambitious asks.
This pricing uncertainty creates both opportunities and risks for private sellers and buyers. Without professional market knowledge, many sellers either leave money on the table or price themselves out of the market entirely. Meanwhile, buyers struggle to determine what constitutes a fair price in such a variable landscape.
Mark Stevens, a professional vehicle appraiser with 15 years of experience, offered some perspective on this challenge when I consulted him about the CX-5 listing.
“The used SUV market has developed micro-segments that most valuation tools don’t properly capture,” he explained. “Factors like specific option packages, certain color combinations, and even the service history at particular dealerships can influence the market value by thousands of dollars. It’s become incredibly nuanced.”
This nuance extends to regional variations as well. The same SUV model can command significantly different prices depending on the location. Coastal areas typically see higher prices for lifestyle-oriented SUVs, while models with genuine off-road capability command premiums in regional areas. Understanding these regional factors has become essential for buyers looking to maximize value.
The Future Outlook: Evolution Rather Than Revolution
Looking ahead, industry analysts expect the SUV dominance of Australia’s used car market to persist, though with some evolutionary changes likely to emerge in response to economic and environmental pressures.
“We’re seeing early signs of increased interest in hybrid SUVs, particularly as fuel prices remain volatile,” notes Wilson, the market analyst. “The supply of these vehicles in the used market remains limited, but as more new hybrid SUVs are sold, this will gradually flow through to the second-hand market over the next 24-36 months.”
This shift is already evident in search and inquiry data from major platforms, where terms like “hybrid SUV” and “fuel-efficient SUV” have increased by more than 140% compared to the same period last year.
The emergence of electric SUVs in the used market also bears watching, though currently, these vehicles represent less than 1% of used SUV transactions. As more affordable electric SUV models enter the new car market and subsequently filter into the used market, this segment is positioned for potential growth, particularly if charging infrastructure continues to improve.
Another trend likely to influence the market is the growing preference for smaller, more urban-focused SUVs among younger buyers entering the used market for the first time. Models like the Toyota Yaris Cross, Mazda CX-30, and Kia Seltos are proving increasingly popular with buyers under 35, suggesting a possible shift toward more practical, efficient SUVs rather than a move away from the body style altogether.
Navigating the SUV-Dominated Landscape
For buyers entering today’s used car market with an SUV in mind, the competitive landscape requires strategic thinking and flexibility. Based on conversations with dealers, private sellers, and recent buyers, several approaches can help navigate this challenging market.
First, being open to slightly older models with higher mileage but comprehensive service history often yields better value than stretching for newer examples. As Chen from the dealership noted, “A five-year-old SUV with full dealer service history is often a better buy than a three-year-old example with patchy maintenance, even with an extra 30,000km on the clock.”
Second, considering less fashionable colors or trim levels can result in significant savings. The “silver tax” is real – popular, neutral colors like silver, white, and grey typically command premiums of $1,000-2,500 over identical vehicles in less popular colors like brown, green, or orange.
Third, exploring models from brands with less cachet but solid reliability can uncover hidden value. The Renault Koleos, for instance, shares much of its engineering with the Nissan X-Trail but typically sells for 15-20% less on the used market. Similarly, the Skoda Karoq offers Volkswagen Group engineering and reliability at a considerable discount to its Tiguan cousin.
Finally, patience remains perhaps the most valuable asset in today’s market. The best deals often come to those willing to wait for the right vehicle rather than settling for what’s immediately available.
As I concluded my research for this article, I found myself back at school pickup, once again counting the vehicles filing through. The SUV dominance remained unchanged – if anything, it had increased further. Love them or loathe them, these versatile vehicles have undeniably transformed Australia’s automotive landscape, and their stronghold on the used car market shows no sign of weakening anytime soon.
For buyers, sellers, and dealers alike, understanding the nuances of this SUV-dominated marketplace has become essential. Whether you’re looking to purchase, sell, or simply make sense of the current automotive landscape, one thing is clear: the reign of the SUV as Australia’s preferred family vehicle continues unabated, reshaping our roads, parking lots, and used car markets for the foreseeable future.
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