Used EV Sales Surge Almost 30 Per Cent as Second-Hand Market Tightens

Australia's second-hand car market is seeing rapid growth in demand for pre-owned electric vehicles, even as overall vehicle listings drop across the country.

Fresh figures released by the Australian Automotive Dealer Association (AADA) and automotive data firm AutoGrab show that 5,417 used electric vehicles were sold nationwide during September. That represents a 29.8 per cent surge compared to August, lifting electric models to a 2.1 per cent share of total used vehicle transactions. While that overall percentage remains modest compared to new vehicle deliveries, it marks a notable climb from 1.5 per cent recorded in July.

Used inventory tightens across the board

The wider pre-owned market also experienced robust activity, logging 258,127 total sales in September. This represents a 6.0 per cent increase over August and the third straight month of rising transaction volumes.

However, this uptick in sales coincided with a shrinking supply of available stock. Active listings fell 7.7 per cent during the month to 390,184 vehicles, leaving dealer and private inventories roughly 10.9 per cent below their July peak. Across the national market, roughly 66 vehicles were purchased for every 100 listings active on lots, underscoring that transactions are running faster than stock replenishment. At the same time, the average duration a vehicle spent on the market lengthened slightly, shifting from 51.5 days to 52.8 days.

Four-wheel drive and all-wheel drive vehicles also continued to take ground, representing 46.2 per cent of sales. Meanwhile, manual gearboxes accounted for only 6.6 per cent of all transactions, pointing to a continuing preference for automatic driving across Australia.

What this means for your novated lease

For workers looking at salary packaging, these shifting second-hand dynamics carry several practical takeaways:

• Used EVs are viable on a novated lease: Many drivers assume novated leasing only applies to brand-new showroom cars. You can lease a pre-owned electric vehicle, provided it meets lender criteria and age rules, which lets you combine lower upfront depreciation with salary sacrifice perks.
• Exemption criteria still matter: To claim the federal fringe benefits tax (FBT) exemption on an electric car, the vehicle must have had its first retail sale on or after 1 July 2022 and its purchase cost must sit below the fuel-efficient luxury car tax threshold.
• Residual values find stronger footing: Sharper demand for second-hand EVs helps stabilise residual market prices. That provides added peace of mind when it comes time to clear your lease's balloon payment or trade the vehicle in at lease end.
• Move swiftly on clean stock: With active listings contracting across dealerships, high-quality late-model electric cars with clear battery health histories are being snapped up faster. Having pre-approval ready through your salary packaging provider helps secure vehicles quickly.