Used Car Prices in Australia Are Falling Fastest on Utes and SUVs

Used ute and SUV prices in Australia have fallen 10.7% over the past 12 months, according to the Moody’s Analytics Used-Vehicle Price Index. That is nearly three times the drop in passenger cars over the same period. For tradies, contractors, and business owners who have been holding off on a vehicle purchase, the numbers are shifting.

Overall, used vehicle prices are now 20.7% below their May 2022 peak. They are still sitting roughly 38% above where they were before the pandemic, so nobody is calling this cheap. But the direction is clear, and for work vehicles in particular, the correction is accelerating.

Why utes and SUVs are falling faster

Two forces are working at once. On the supply side, new vehicle deliveries have improved significantly. Average wait times for a new car in Australia have dropped from 109 days to around 65 days. That means fewer buyers are being forced into the secondhand market, and dealer lots are filling up with trade-ins.

On the demand side, the fuel crisis is changing buyer behaviour. With unleaded above $2.50 a litre and diesel above $3 in many areas, large petrol and diesel vehicles are less attractive to lifestyle buyers. The EV rush is pulling demand away from traditional utes and SUVs. Used EV sales more than doubled in March alone.

The result: used work vehicles are sitting on lots longer. Average days to sell hit 47 in December 2025, and the trend is still extending. Sellers are having to meet the market, and buyers have more room to negotiate.

What this means for business buyers

If you run a trade, construction, farming, or logistics business, vehicle costs are one of your biggest line items. A 10.7% drop on a $50,000 used ute is $5,350 back in your pocket before you even start negotiating.

The dynamic right now favours buyers who are ready to move. Stock is available, sellers are motivated, and competition from lifestyle buyers has thinned. If you have been waiting for the secondhand market to cool, this is what cooling looks like.

There is also a timing consideration. The $20,000 instant asset write-off is still available for businesses with turnover under $10 million, but only until 30 June. After that, the threshold drops to $1,000. If the vehicle is under $20,000 and installed for use before the deadline, you can write off the full cost this financial year.

What to do

Start with a clear budget and a shortlist. Work vehicles in the $30,000 to $50,000 range have seen the steepest drops, particularly dual-cab utes and mid-size SUVs.

Negotiate harder than you would have 12 months ago. With days to sell climbing, private sellers and dealers are more flexible than the listed prices suggest. Get two or three quotes.

If you are financing the purchase, compare across multiple lenders before signing. Rates and structures vary significantly, and the difference between a competitive rate and a default dealer rate can be thousands of dollars over the life of the loan.

Check whether the vehicle qualifies for the instant asset write-off. It needs to be under $20,000, used for business purposes, and installed ready for use by 30 June 2026. Talk to your accountant before committing.

The used vehicle market has not returned to pre-pandemic pricing and likely will not. But for work vehicles, the past 12 months have been the best correction since 2022. The deals are there if you are looking.

Update, September 2026: the $20,000 instant asset write-off limit did not fall to $1,000. The ATO's current guidance applies the $20,000 limit to assets first used or installed ready for use on or after 1 July 2023, with no end date, for businesses with aggregated turnover under $10 million.

This article is general information only and is not financial advice.