How the Used Car Market Has Changed Post-Pandemic in Australia

The COVID-19 pandemic turned the Australian automotive industry on its head—and nowhere was the impact felt more than in the used car market. From skyrocketing prices and limited stock to changing consumer habits, the second-hand vehicle landscape saw a dramatic shift that’s still evolving today.

As we navigate through 2025, the used car market in Australia continues to recalibrate. Whether you’re looking to upgrade your ride, offload a vehicle, or are simply curious about second hand car prices post-COVID, this guide unpacks the key changes, trends, and what it all means for buyers and sellers across the Mornington Peninsula.

The Pandemic Used Car Boom — and the Shift We’re Seeing Now

During the peak of the pandemic, supply chain disruptions led to lengthy delays in new vehicle deliveries. As a result, demand for used cars surged. Australians were willing to pay top dollar for second-hand vehicles, driving up prices by as much as 30–40% in some categories.

Fast forward to 2025, and we’re seeing a market in transition. The panic buying has subsided, new vehicle stock levels are improving, and second-hand prices are starting to correct—though not uniformly across the board.

For a deeper dive into why so many car dealers have shifted their focus to pre-owned stock, read our blog on Why Are So Many Car Dealers Pushing Used Cars Now?

Key Trends in the Australian Used Car Market in 2025

1. Price Normalisation (Sort Of)

While second hand car prices post-COVID have started to cool, they’re not quite back to pre-pandemic levels. Vehicles that hold their value well—like late-model utes, hybrids, and small SUVs—are still commanding strong resale prices, especially in regions like Frankston and Mornington where demand remains high.

However, models with higher fuel consumption or less desirable features are seeing price reductions as supply stabilises and buyers become more selective.

2. Demand Patterns: Utes, SUVs & Hybrids Dominate

Utes and SUVs continue to be in high demand across Frankston, Hastings, and the broader Mornington Peninsula. Tradies are still chasing reliable workhorses, and families are leaning toward spacious SUVs with flexible seating and storage. The hybrid segment is also heating up, as fuel efficiency becomes a bigger priority for cost-conscious drivers.

This aligns with trends we explored in SUVs Dominate: Decoding the Future Landscape of the Used Car Market

3. Supply Chain Recovery Brings More Options

New car production and imports into Australia are back on track. This means more trade-ins, better variety on used car lots, and less pressure to make snap decisions. Local dealerships like Frankston Ford are seeing more turnover in quality pre-owned vehicles, giving customers broader choice without the inflated COVID-era prices.

If you’re tired of waiting months for a new car, check out Say Goodbye to Waiting: New Ford Vehicles Are On The Way

Consumer Behaviour: What Buyers Want in 2025

More Online Research & Digital Buying

The pandemic fast-tracked the adoption of digital research and online car shopping. Today’s used car buyer expects transparent listings, detailed vehicle history, virtual walkarounds, and even the option to complete much of the transaction online.

At Frankston Ford, our listings for used cars in Frankston and used cars on the Mornington Peninsula include comprehensive descriptions, service history, and competitive pricing to help you feel confident from the very first click.

Reliability, Fuel Efficiency, and Resale Value Matter More

Whether you’re browsing in-store or online, today’s buyers are laser-focused on long-term value. That means prioritising:

• Brands with strong resale value (like Ford)
• Models with low running costs
• Vehicles with clean history and dealership service records
  

Not sure what to look for? Our checklist on What to Check Before Buying a Used Car in Victoria can help you inspect like a pro.

Dealership vs Private Sale: Why It Matters More Than Ever

As uncertainty around market pricing and vehicle history continues, many buyers are turning away from private listings in favour of certified vehicles from trusted dealers.

Trust, Warranty & Certification

Frankston used car dealerships, like ours, offer peace of mind through:

• Certified inspections
• Statutory warranties
• Clear title and PPSR checks
• Finance and insurance options
• Thorough history reporting

Learn more about the protection and benefits included with dealer purchases in Why Buy from a Franchise Dealer Over Private or Independent

And if you’re comparing offers, discover whether Used Car Dealers Are Negotiable — spoiler alert: there’s usually room to talk if you’re informed and respectful.

What’s Next for 2025? Looking Ahead in the Used Market

EVs & Hybrids Enter the Second-Hand Scene

Electric vehicles (EVs) are beginning to trickle into the used car market, though they’re still relatively niche compared to hybrids and fuel-efficient petrol options. Expect the used EV segment to grow significantly over the next 12–24 months, particularly as more Australians seek greener and cheaper-to-run vehicles.

Leasing vs Owning Second-Hand

We’re also seeing rising interest in leasing used cars—particularly among younger drivers or those with flexible work/life arrangements. It offers predictable costs, lower upfront investment, and easier upgrades.

But ownership still offers greater freedom and potential resale value—especially when buying from reputable used car dealers in Frankston.

If you’re comparing your options, check out our blog on Top Reasons Why Buying a Used Ford in Australia Is a Smart Investment

Final Thoughts: Timing the Market

As the used car market Australia 2025 continues to evolve, the best advice is this: don’t wait for the “perfect” time. Instead, be informed, prepared, and ready to act when you find the right vehicle that fits your lifestyle and budget.

Prices may not fall dramatically, but with improved stock levels, more transparent listings, and better protection through trusted dealerships, there’s never been a better time to explore second hand cars in Frankston and the Mornington Peninsula.

Whether you’re searching for used cars in Frankston, or second-hand cars in Frankston, Frankston Ford is here to help. We offer a huge range of used cars Frankston buyers trust — all backed by local service, expert advice, and flexible finance.