Used electric cars are commanding higher prices across Australia, as soaring petrol and diesel costs push more drivers to consider EVs. The usual trend of falling secondhand prices has flipped — but only for electric vehicles.
Fuel Prices Drive Demand for Used EVs
Diesel and petrol prices have been climbing steadily, with unleaded nearing $2.50 a litre and diesel close to $3 in many parts of Australia. That’s making it harder for many drivers to justify sticking with combustion engines. Instead, electric vehicle sales and rentals are booming.
Jake Sale, who runs Perth’s MotorMetrics, says dealers typically lower prices the longer a used car sits on the lot. But lately, they’ve been doing the opposite for EVs.
"It’s specifically EVs that buyers are looking for," Sale explains. Tesla’s Model Y prices jumped more than 6% in late March, with other popular models like the Tesla Model 3, MG4, and Polestar 2 also rising. At the same time, the stock of used EVs is running low, pushing dealers to increase asking prices.
Meanwhile, used petrol and diesel vehicles have seen price cuts up to 20%. The contrast is stark — buyers are clearly switching preferences.
Rising Rental Demand and Changing Consumer Habits
Rob Chan from Turo Australia says bookings for electric and hybrid cars have jumped 70% compared to last year’s Easter period. Some travellers have ditched traditional road trips, worried about fuel costs and availability, choosing to rent EVs instead.
Chan compares this shift to the surge in travel after pandemic restrictions lifted, calling it "a wave of consumer interest changes that's very unique." He predicts this trend will last, as people seek more economic and environmentally friendly options.
Historically, Australia has lagged behind countries like Canada and New Zealand in adopting electric vehicles, partly due to political divisions that slowed incentives and infrastructure development. But that’s changing fast.
At the end of 2025, there were over 454,000 battery electric and plug-in hybrid vehicles on Australian roads, according to the Electric Vehicle Council. EVs now make up about 13% of new car sales, with that share expected to rise as more models and charging stations become available.
Shifting Attitudes Even Among Car Enthusiasts
Matt Hurlston, a self-described petrolhead from Melbourne, recently switched to an electric vehicle despite initial doubts. His son’s complaints about diesel prices pushed him to finance an EV purchase, and he’s awaiting delivery of his Tesla.
Hurlston admits the driving experience felt unusual at first — "a bit like being in a computer game" — but he quickly saw the benefits. Lower running costs and zero emissions helped change his mind, proving EVs can appeal beyond the traditional eco-conscious crowd.
Interest in secondhand EVs is also growing. Pickles auction house reports a 20% rise in EV sales compared to the previous month, with buyers aged 31 to 40 leading the charge. These buyers often have young families and longer commutes, so cutting fuel expenses makes sense.
Brendon Green from Pickles says rising petrol prices sharpen buyers’ focus on running costs, making used EVs more attractive. The fringe benefits tax exemption on eligible EVs has also boosted sales in recent years.
Tesla’s Mixed Market Performance
While EV demand is strong, Tesla’s position is more complicated.
Globally, new Tesla sales have dropped sharply in some markets, including Australia, Germany, and China. Tesla’s used models have also seen price falls in the US, with older Model 3s available for under $15,000.
Some US Tesla owners have even gone so far as to disguise their cars with rival brand badges amid growing anti-Tesla sentiment. Web searches for Tesla vehicles dropped 7% in February 2026 compared to the previous year, while searches for other used EVs jumped 28%.
Whether Tesla’s recent struggles will impact the Australian market we'll have to wait and see. But the broader shift toward electric vehicles looks set to continue, driven by economics and the fuel crisis.
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With fuel costs pressing hard on budgets, Australians are turning to electric vehicles in record numbers. Used EV prices rising signals more people see these cars as a practical, long-term choice — not just a novelty. The question now is how quickly the market can keep up.
This article was created with AI assistance.
