New findings: Australia’s EV boom is reshaping the used car market as record sales feed future supply
Australia’s record run of electric vehicle sales is beginning to reshape the country’s used car market, with auction giant Pickles predicting a wave of ex-novated lease EVs will significantly boost second-hand supply over the coming years.
The forecast follows another standout quarter for battery-electric vehicles, with EVs accounting for more than 20 per cent of monthly new vehicle sales throughout the second quarter before climbing to a record 24 per cent market share in June, when they outsold diesel-powered vehicles for the first time.
Private EV sales also jumped by more than 11 per cent during June, contributing to almost 50,000 combined EV and plug-in hybrid deliveries.
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According to the latest Pickles Quarterly Automotive Report, that rapid growth is now beginning to flow through to the used market as the first vehicles purchased under the Federal Government’s Fringe Benefits Tax (FBT)-exempt novated lease scheme approach the end of their lease terms
The auction giant believes the increased supply will mark a new phase in Australia’s used EV market, giving buyers more choice while helping the sector mature.
The broader used vehicle market, however, endured one of its toughest quarters in recent years, with geopolitical uncertainty, fuel price volatility and weaker consumer confidence weighing on demand. Despite the softer conditions, Pickles expects the market to strengthen as more traditional seasonal buying patterns return.
Chris Shaw, General Manager – Automotive at Pickles, said buyers had become more measured in their purchasing decisions after several years of supply-constrained trading.
“After several years of strong trading conditions, we’re seeing buyers and sellers respond to market conditions in a much more measured way. That’s consistent with what we’d expect during a traditional seasonal slowdown.
“While conditions are more challenging than they were during the supply-constrained years, they’re also becoming more predictable, allowing buyers and sellers to make better-informed decisions.”
The report says buyers are increasingly prioritising value, running costs and long-term ownership, while improved new vehicle availability is giving consumers more choice across the market.
Pickles expects confidence to improve during the second half of the year as supply continues to normalise.
“As confidence returns and supply gradually improves, we expect more traditional seasonal trading patterns to re-emerge over the remainder of the year,” Shaw said.
“Markets always evolve. The organisations that understand where buyer demand is moving and how supply is changing will be best placed to make informed decisions.”
The tenth edition of the Pickles Quarterly Automotive Report also examines changing fleet strategies, the future impact of novated leasing on used EV supply, the prestige vehicle market, transport and industrial vehicles, and trends in the salvage sector.
