Is now a good time to buy a used car?
The unprecedented influx of Chinese-brand cars into Australia during 2026 has led to an increase in the number of second-hand vehicles listed for private sale and an overall drop in prices.
A new report from Carma, NRMA's preferred used car dealership, shows Chinese cars are flooding the market and pushing down prices, while often losing value faster than other vehicles at similar price points.
Carma's Used Car Market Spring Snapshot, October 2026 shows private listings of brands such as MG, Haval and BYD rose 58 per cent, compared with a market-wide increase of just 13 per cent in the year to September 2026.
Most of the cars listed were between $20,000 and $35,000, and within that band Chinese brands lost 11.1 per cent of their value over the year compared to 8.7 per cent for the rest of the market.
While greater-than-average depreciation is bad news for anyone who bought a new Chinese vehicle in the past 12 months, it does mean a wealth of potential bargains for the used car buyer.
“Across the market as a whole, the same used car was about 6.5 per cent cheaper in September than a year earlier, while around two-thirds of dealer cars leaving the market had been discounted,” explains Carma Co-Founder and CEO, Lachlan MacGregor.
Before buying used, check the new car price
If you’re in the market for a mid-sized SUV, for example, a two- or three-year-old MG HS has recently been selling for as little as $19,999 drive away, a whopping 45.9 per cent less than the $36,991 drive-away price of a new model.
Interestingly, however, the MG ZS has been listed at 33.2 per cent off its new-car value, while the GWM Haval Jolion is only 20 per cent cheaper than new, putting it closer to the Toyota Corolla for resale value.
In other words, the Chinese brands are not moving as one; the badge matters as much at the affordable end of the market as it does anywhere else.
“Before buying used, check the exact new car drive-away price,” says Director of Buying at Carma, Peter Willis. “For some Chinese brands, the gap can be substantial, while for others, a new car might be closer in price than you think.”
A Carma snapshot of various models shows just how unpredictable used car values are in the current market, with high petrol and diesel prices adding further volatility.
New vs used: what could you save?
| Model | Brand | Used (2-3 yrs old) | New (drive away) | Saving |
| Mitsubishi Triton | Other | $41,735 | $50,490 | $8755 (17.3%) |
| Kia Seltos | Other | $31,211 | $38,888 | $7677 (19.7%) |
| GWM Haval Jolion | Chinese | $21,990 | $27,485 | $5495 (20.0%) |
| Toyota Corolla | Other | $29,790 | $37,341 | $7551 (20.2%) |
| Mazda CX-30 | Other | $28,651 | $35,990 | $7339 (20.4%) |
| Hyundai Kona | Other | $33,079 | $44,085 | $11,006 (25.0%) |
| Ford Ranger | Other | $61,417 | $81,987 | $20,570 (25.1%) |
| LDV T60 | Chinese | $28,870 | $38,990 | $10,120 (26.0%) |
| Tesla Model 3 | Other | $46,910 | $64,800 | $17,890 (27.6%) |
| Suzuki Swift | Other | $20,883 | $28,988 | $8105 (28.0%) |
| Toyota RAV4 | Other | $45,909 | $64,990 | $19,081 (29.4%) |
| Mitsubishi Outlander | Other | $32,486 | $46,385 | $13,899 (30.0%) |
| GWM Haval H6 | Chinese | $27,830 | $41,485 | $13,655 (32.9%) |
| MG ZS | Chinese | $16,990 | $25,426 | $8436 (33.2%) |
| Hyundai Tucson | Other | $34,510 | $53,740 | $19,230 (35.8%) |
| Tesla Model Y | Other | $47,411 | $74,431 | $27,020 (36.3%) |
| Mazda CX-5 | Other | $33,237 | $52,990 | $19,753 (37.3%) |
| MG HS | Chinese | $19,999 | $36,991 | $16,992 (45.9%) |
Source: Carma Used Car Market Report: Spring Snapshot, October 2026
Higher oil prices driving EV uptake
In March 2026, when the conflict over the Strait of Hormuz in Iran first pushed fuel prices above $2.50 per litre, sales of used EVs priced under $35,000 more than doubled from the previous month, reaching 1,228.
Sales then returned to more stable levels until it became clear that the Iran conflict remained unresolved. In September 2026, sales of used EVs priced under $35,000 climbed to 1,288.
Dealer demonstrators accounted for an increasing proportion of those used EV sales, rising from just 14 per cent in September 2025 to 45 per cent in September 2026.
“At around $30,000, you might be looking at a demonstrator with 200km on it and a full warranty, or a three-year-old car that someone has driven every day,” says Willis.
“Check the build date, the kilometres and how much new-car warranty is left, because at a similar price, those are two very different cars.”
Now is a good time to buy used
If you are in the market for a used car, the time to act is now. With July 2026 the busiest for used car dealers in two years, stock levels are depleting – which could increase demand versus supply and therefore prices.
“If you’ve found the right car, compare it with similar listings rather than waiting for the whole market to fall further,” says Willis. “A well-priced car could be gone before the market moves much.”
The make and model you choose can also determine whether buying new or used offers the better deal, with significant differences in depreciation after just one year.
Buying a one-year-old Subaru Crosstrek could save you as much as $7642 over a new model, while purchasing a one-year-old Toyota Prado could save just $667 – which would barely cover a year’s wear and tear.
Source: Carma Used Car Market Report: Spring Snapshot, October 2026
Carma is the NRMA's preferred used car dealership, giving members a safer, simpler way to buy or sell, with exclusive benefits for My NRMA Rewards members.
