Melbourne car resale values: What's changed?

Melbourne’s second-hand market has moved through a period of rapid change, followed by a more settled phase. While some vehicles continue to attract strong buyer interest, others are receiving more cautious offers than they did a few years ago.

For sellers, this means resale value is no longer shaped by broad market momentum alone. Understanding where the market sits today can help you form realistic expectations, compare offers and decide when to sell.

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Melbourne’s used car market has eased from the unusually strong conditions seen in previous years. Prices are no longer rising across the board, and many vehicles are attracting more measured offers as buyers compare options more carefully.

The market has not dropped evenly. Resale values vary between segments, with some second-hand vehicles remaining relatively stable while others face greater price pressure. Sellers should treat broad Australian market data as a guide rather than a guarantee of what a specific car will achieve.

What we've observed from buying vehicles in Melbourne

Our experience buying vehicles across Melbourne shows a market that is more selective than it was during the recent peak. Buyers are still active, but offers are being shaped more by genuine resale potential than by broad demand across all used cars.

The biggest changes in recent years

The most noticeable change has been the return to more realistic pricing. During the strongest period of the used car market, limited stock pushed values higher across many categories. Today, that pressure has eased, and sellers are less likely to receive unusually high offers simply because a vehicle is available.

How buyer behaviour has shifted

Buyers are taking more time to compare vehicles, review listings and assess whether an asking price reflects the current market. There is also less urgency to secure the first suitable car, giving buyers more room to negotiate and move on when a vehicle appears overpriced.

Plus, buyers can now filter a wider range of listings and compare the drive-away cost of a brand-new vehicle against the asking price of a second-hand alternative.

The trends we're seeing today

Current trends point to a more stable but uneven market. Well-positioned vehicles can still attract competitive interest, while less desirable cars may remain available for longer or require price adjustments. This makes a current valuation more useful than relying on past sale prices or broad online estimates.

Why resale values have changed

Several broader pressures have influenced car resale values in Melbourne. These factors affect what buyers can afford, which vehicles they prioritise, and how confidently they enter the used-car market.

Rising fuel prices

Higher fuel costs have made running expenses a bigger part of the purchase decision. Some buyers now look more closely at fuel economy before committing, particularly when comparing larger petrol vehicles with smaller cars, hybrids or more efficient alternatives.

Cost of living pressures

Rising household expenses have reduced the amount many buyers can comfortably spend on a vehicle. This has increased price sensitivity, encouraged more negotiation and placed downward pressure on cars that appear expensive to own or maintain.

Changes in consumer confidence

When buyers feel uncertain about interest rates, employment or future expenses, they are more likely to delay a purchase or choose a lower-priced option. Reduced confidence can slow demand, even when suitable vehicles remain available.

Supply and demand across the used car market

Resale values rise when buyer demand exceeds the number of available vehicles and soften when supply improves. As access to new and used cars has become more stable, buyers have gained more choice, reducing the intense competition that previously supported higher prices. Supply can also change when dealerships receive more trade-ins or when financing conditions affect demand for new or used cars.

Which vehicles are holding their value best?

Some vehicle categories continue to retain their value better than others, even as the broader used car market becomes more price-sensitive. Based on 1800 Salvage’s trading experience, demand remains strongest for practical models with an established reputation, broad buyer appeal and dependable long-term ownership.

Popular 4WDs and dual-cab utes

Well-known 4WDs and dual-cab utes continue to hold their resale value strongly. Models such as the Toyota LandCruiser, Prado and HiLux, along with the Ford Ranger, remain sought after because they suit family travel, work and regional driving.

Their popularity in both the new and used car market helps create a larger second-hand buyer pool. This can support a vehicle’s market value, although age, kilometres travelled, maintenance and mechanical condition still determine the final offer.

This trend is also visible in national sales data. The Federal Chamber of Automotive Industries reported that the Ford Ranger, Toyota HiLux, Ford Everest and Toyota Prado were among Australia’s top-selling vehicles in 2025, reinforcing the ongoing demand for utes and SUVs.

Reliable Japanese and Korean brands

Japanese and Korean brands such as Toyota, Honda, Mazda, Hyundai and Kia also tend to perform consistently in the resale market. Many buyers consider these vehicles practical to own, service and replace, which gives popular models a broad audience when they return to market.

A Toyota Camry, Mazda SUV or well-maintained Hyundai may retain its value more effectively than a less familiar model with limited dealer support. However, the badge alone does not ensure a stronger offer. Mileage, service history, condition and current demand must still be considered.

Why reputation continues to drive demand

A vehicle with a strong reputation gives buyers greater confidence in its reliability, maintenance costs, and parts availability. It may also be easier to finance, insure and sell through a dealership or private listing.

Buyers may also consider whether a vehicle is straightforward to register, insure and maintain. A model that attracts competitive car insurance options and has strong local servicing support may feel like a lower-risk purchase.

This is why established models often remain desirable even when brand-new alternatives enter the market. Buyers may compare online tools, estimates and advertised prices, but they still place considerable weight on a model’s ownership record and resale history.

A popular badge can support value, but it should not be treated as an investment guarantee. A comprehensive valuation needs to consider the individual vehicle rather than calculate value from the make and model alone.

What about electric vehicles?

Electric vehicles have attracted more attention in Melbourne, but their resale performance remains less predictable than that of established petrol, diesel and hybrid models. Demand is growing as more EVs enter Australia’s new-car market, although second-hand values can still vary widely across brands and models.

How higher fuel prices influenced demand

When petrol and diesel prices rose, more buyers began considering EVs to reduce everyday fuel costs. This helped lift interest in both new and used electric cars, particularly among Melbourne drivers with access to home charging.

The shift was not driven by fuel prices alone. A wider range of available models, discounted finance and government incentives also made EV ownership accessible to more Australians. EVs accounted for 13.1% of new cars sold nationally in 2025, showing that buyer interest has continued to grow.

Why the market has begun to stabilise

The earlier rise in second-hand EV demand appears to have cooled as fuel prices eased and buyers gained more choice. More brand-new EVs are entering the Australian market, often with updated technology, longer driving ranges or competitive drive-away pricing.

This can place pressure on the value of older models. Buyers may compare a used EV against a discounted new vehicle rather than against other second-hand cars alone. Changes in incentives and financing options can also quickly influence demand, making EV resale values more sensitive to current market conditions.

Where EV resale values sit today

There is no single resale trend across all electric vehicles. A popular model with strong brand support, practical range and a transferable battery warranty may retain its value more effectively than an older or less familiar EV.

Battery condition, kilometres travelled, charging history, remaining warranty and access to servicing can all influence an offer. Sellers should check whether the battery warranty transfers to the next owner and whether the vehicle’s insurance policy has any relevant conditions. These details can influence buyer confidence, particularly when the model is still relatively new to Australia.

Online tools may provide a broad estimate, but they do not always reflect an individual EV’s true market value. For a more accurate comparison, consider current listings, recent trading data and a professional Melbourne car valuation based on the vehicle’s specific details.

Market conditions can influence demand, but the details of the individual vehicle usually have a greater impact on its final resale value. A broad estimate or an online car valuation report may provide a starting point, but buyers calculate offers based on the car’s age, use, condition, and likely resale value.

Make and model

Make and model affect how easy a vehicle may be to resell. A popular car with an established reputation, accessible parts and a broad service network may attract more buyer interest than a less familiar alternative.

Demand can also vary between versions of the same model. Engine type, transmission, body style, safety features and trim level may all influence the vehicle’s market position.

Vehicle age

Age affects depreciation, warranty coverage, and the technology buyers expect. Newer vehicles may benefit from modern safety equipment and remaining factory warranty coverage, while older cars can appeal when they are affordable, reliable, and inexpensive to maintain.

A vehicle does not lose value according to age alone. Some older models remain desirable, while a newer car can depreciate quickly when supply is high or a replacement model is released.

Kilometres travelled

Kilometres travelled help buyers estimate how heavily a car has been used. A lower reading may support value, but it is considered alongside age, service records and the type of driving completed.

Unusually low mileage without supporting maintenance documents may raise questions, while a higher-kilometre vehicle with a comprehensive service history can still present well.

Mechanical condition

Mechanical faults can reduce an offer because the buyer must account for diagnosis, repairs and the risk of further problems. Engine or transmission issues, warning lights, worn tyres and damaged suspension may have a greater effect on value than a small movement in the wider market.

Accident history can also be relevant. Repair documents, car insurance claims and evidence of professional work can help explain what happened. Sellers should ensure the information they provide is accurate, although previous damage may still affect how a buyer or insurer assesses the vehicle.

Presentation at the time of sale

Presentation shapes the buyer’s first impression and can make the vehicle easier to assess. A clean interior, clear photos and accessible documents help show the car accurately without attempting to hide wear or damage.

Minor cleaning may improve appeal, but sellers should consider whether costly cosmetic work will genuinely increase the offer. Honest details generally support a smoother comparison and negotiation than presenting an unrealistic picture of the asset.

Are used car prices still falling in Melbourne?

Used car prices have generally moved away from the unusually high levels seen at the market peak, but values are not falling at the same rate across all categories. Popular, reliable vehicles may remain relatively steady, while models with weaker demand or high running costs can face greater downward pressure.

Which vehicles hold their value best?

Popular 4WDs, dual-cab utes and established Japanese and Korean models often retain their value well. Buyer demand remains strong for vehicles such as the Toyota Prado, LandCruiser and HiLux, Ford Ranger, and selected models from Mazda, Honda, Hyundai and Kia. The individual car’s age, condition and history still matter.

Are electric vehicles retaining their value?

EV resale values vary considerably. Strong brand support, useful driving range, battery condition and remaining warranty can help, while falling new-car prices or rapid technology changes may reduce the value of older models. A model-specific valuation is more useful than applying one trend to every EV.

Is now a good time to sell my car?

It may be a suitable time to sell when your vehicle still meets current buyer demand and before major repairs, registration costs or further depreciation arise. The right timing depends more on your car and personal circumstances than on trying to predict the market’s exact peak.

What has the biggest impact on resale value?

Mechanical condition often has the greatest immediate impact because buyers account for repair costs and risk when calculating an offer. Make and model, age, kilometres travelled, service history, previous damage and presentation also contribute to the final value.

Melbourne car resale values have become more balanced after several years of stronger-than-usual pricing. While broad market conditions still matter, the value of an individual vehicle depends more heavily on its make, model, age, kilometres, service history and current condition.

Sellers should avoid relying on advertised prices alone, as these do not always reflect what buyers are prepared to pay. A current valuation can help set realistic expectations, compare offers and decide whether selling now suits your circumstances.

You may wonder whether waiting for the market to improve will yield a better result, but additional registration, insurance, and maintenance costs can offset any small increase in value.

For damaged, unregistered or non-roadworthy vehicles, 1800 Salvage provides a simple online valuation process, fast payment and organised vehicle collection across Melbourne.

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