Near-New and Demo EV Stock Surges 69% Across Australian Dealerships

Australian car dealerships are holding record numbers of showroom demonstrators and near-new electric vehicles, according to the latest Automotive Insights Report released by the Australian Automotive Dealer Association (AADA) and AutoGrab.

Between July and October, dealer stock of demonstrator and near-new electric cars jumped by 68.8 per cent, reaching 9,656 vehicles across the country. Over the same quarter, overall dealer demonstrator and near-new vehicle stock across all fuel types increased by 12.1 per cent to 73,708 vehicles.

While dealer EV transactions grew 19.4 per cent in October, listings expanded faster than completed sales. That imbalance pushed the sales conversion rate down from 50 sales per 100 listings to 45, forcing dealerships to confront an accumulating pool of aged stock on showroom floors.

Retained values on used and demonstrator vehicles also continued to slide throughout October. With dealer supply in the near-new segment running well ahead of historical averages, automotive retailers are facing mounting commercial pressure to move metal promptly rather than hold out for premium sticker prices.

What this means for your novated lease

For Australian employees looking at salary packaging, a swelling pool of demonstrator and low-kilometre electric cars creates several clear financial benefits:

• Demonstrators qualify for new-car tax treatment: A demonstrator vehicle that has not previously been privately registered or had Luxury Car Tax payable on it generally qualifies for the full electric car Fringe Benefits Tax (FBT) exemption, provided its value sits beneath the current $91,661 fuel-efficient vehicle threshold.
• Substantial upfront discounts: Because dealerships are eager to clear demonstrator stock to minimise floorplan financing costs, buyers can negotiate thousands of dollars below list price. A lower drive-away cost directly reduces both your monthly pre-tax lease deduction and the residual payout at the end of the term.
• Beat long order wait times: Demonstrators and showroom models are available immediately. With the Federal Government's proposed $75,000 threshold cap scheduled to narrow the full FBT concession for pricier EVs delivered after 31 March 2027, securing a ready-to-deliver vehicle eliminates the risk of production and shipping delays pushing your delivery beyond critical policy cut-offs.
• Lower overall finance charges: Lower purchase prices mean smaller lease principal amounts, shielding your household budget from the impact of interest charges over the life of your salary package.

If you want to package a premium electric SUV or sedan without paying top-tier pricing, asking your novated lease provider to source late-model demonstrator stock could yield significant savings.