Australia’s second-hand car market is booming just as fast as the new car market as fuel prices climb.
New data from the Automotive Dealers Association Australia reveals the used electric vehicle (EV) market has more than doubled in March as cost-conscious Australians ditch petrol and diesel in favour of cheaper alternatives.
Sales of used EVs jumped from 3,16 in February to 7,557 in March.
Available stock tightened with a 38 per cent plunge, leaving just 28.6 days of supply nationally, well below the typical 60 to 90 days.
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Chinese EVs were the biggest sellers, with the Tesla Model 3 rated as the best seller, followed closely by the Tesla Model Y, and the MG4.
The MG4 had the biggest increase, with 490 models sold in March, up from 114 the month prior.
The new car market has also experienced an uptick in sales with more than 15,839 new battery electric vehicles (BEVs) sold in March, 14.6 per cent of the total market.
The surge represents a 89 per cent year-on-year growth compared to March 2025.
Australian Automotive Dealer Association CEO James Voortman said the growth in the used car market has been largely driven by the conflict in the Middle East and rising fuel prices.
“Rising fuel prices are clearly influencing consumer behaviour, with more Australians turning to used EVs as a practical and cost-effective alternative,” said AADA CEO James Voortman.
“At the same time, the broader used vehicle market remains resilient, with steady sales growth and improving turnaround times indicating healthy underlying demand.”
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However, the rate of interest has caught many in the industry off guard.
AutoGrab Chief Commercial Officer Saxon Odgers said the market snapped almost “overnight”.
“As we’ve seen recently, macro events whether an interest rate decision, a tariff announcement, an oil crisis, or a shift in consumer confidence – can ripple through the used car and demonstrator market within weeks, reshaping which segments are moving, which are stalling, and where the value sits, “ he said.
After months of prices softening, the demand for EVs is pushing prices back up.
“Residual values on used EVs have been stabilising since January, and the March demand surge is now adding upward pressure. Whether this marks a lasting inflection point will depend on how long fuel prices stay elevated, but the data is clear: cost of ownership is now front of mind for buyers, and that’s reshaping how they think about their next vehicle,” AutoGrab Chief Commercial Officer Saxon Odgers.
