Sub-$35,000 Used EVs Surge as Dealer Demos Flood the Market

Budget-conscious motorists exploring the pre-owned electric vehicle market have encountered a welcome shift in supply. Cars priced under $35,000 now make up 26 per cent of all second-hand electric car sales in Australia, effectively doubling their 13 per cent share from 12 months earlier, according to recent figures published by digital automotive platform Carma.

Overall transactions for used electric cars jumped roughly 75 per cent across the same timeframe, but the sub-$35,000 bracket expanded at an even faster pace. In September alone, 1,288 electric models changed hands below that price point, up sharply from 355 sales during the identical month in the previous year.

A key driver behind the rapid growth is the composition of the vehicles being sold. Rather than heavily worn cars with degraded battery health, nearly half of all sub-$35,000 models traded in September—580 vehicles—were dealer demonstrator units. That marks a dramatic rise from a year ago, when dealer demonstrators accounted for just 50 sales in that price range.

Showrooms have registered these demonstrators to display models to prospective buyers, meaning many have only travelled a few hundred kilometres. These near-new cars are subsequently listed at meaningful discounts to original drive-away pricing while retaining the bulk of their factory warranties. The influx has been dominated by competitive compact models, including hundreds of MG 4 and Geely EX2 units.

What this means for your novated lease

For Australian employees looking to package an electric car, this development creates an attractive sweet spot for novated leasing:

• Novating near-new used cars: You do not have to lease a brand-new vehicle to access salary packaging benefits. Dealer demonstrator vehicles qualify for novated leases, allowing you to capture both the initial depreciation markdown and pre-tax running cost deductions.
• Full FBT exemption status: Because demonstrator models were first registered and held after 1 July 2022 and sit well below the luxury car tax threshold, eligible employees can salary sacrifice 100 per cent of finance and operating expenses without paying fringe benefits tax.
• Lower financed principal: Lower purchase prices translate directly into lower ongoing payroll deductions and smaller end-of-lease balloon amounts. A vehicle acquired under $35,000 delivers substantial weekly cash-flow savings compared to typical $55,000 to $70,000 new electric crossovers.
• Retained warranty protection: Since demonstrator units usually possess almost the full span of manufacturer warranty and battery guarantees, drivers reduce the maintenance risks often associated with buying older second-hand vehicles.

If you want to transition to battery power while keeping monthly outgoings manageable, asking your leasing provider to price a dealer demonstrator can deliver exceptional value.