Want to sell your EV? Here’s some great news. Want to buy a used EV? Here’s some bad news
The boom in new EV sales is flowing into the used-car market, with electrified vehicle values strengthening as Australian motorists look to shield themselves from high fuel prices.
New data from the Australian Automotive Dealer Association (AADA) and used car valuation experts AutoGrab shows EVs, hybrids and plug-in hybrids are proving more resilient than petrol and diesel vehicles, requiring fewer discounts to sell and generally holding their values more strongly.
The trend mirrors Australia’s new-car market, where EV sales have surged since the onset of the global oil shock.
It’d also a reversal of fortune for EVs, which have traditionally struggled for retained value in Australia due to limited buyer interest.
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In May new EVs accounted for nearly 20 per cent of sales and the Tesla Model Y sat atop the sales charts, the first time that feat has ever been achieved by an EV.
According to AADA, many of the same factors driving new EV sales are now flowing through to the used market.
“Consumers are looking for ways to reduce fuel costs and are starting to have more familiarity with electric vehicles and there are now more options available at a range of price points,” said AADA chief executive James Voortman.
Percentage of vehicles requiring a discount to sell (May 2026)
| Powertrain | Vehicles requiring discount |
|---|---|
| Hybrid | 47.7% |
| EV | 44.0% |
| PHEV | 46.6% |
| Petrol | 50.5% |
| Diesel | 51.7% |
Source: AADA/AutoGrab
More than half of petrol and diesel vehicles needed discounting to sell, while all three electrified categories performed better.
The latest figures show electrified vehicles accounted for 16 per cent of all used vehicle sales aged between one and five years old during May.
While the broader used-car market became more competitive during the month, EVs and plug-in hybrids required less discounting than they did at the start of the year.
Forty-four per cent of used EVs sold in May required a price reduction, down from 46.3 per cent in January. Plug-in hybrids improved even more significantly, falling from 53.7 per cent to 46.6 per cent over the same period.
Improvement in discounting pressure during 2026
| Powertrain | Jan 2026 | May 2026 | Change |
|---|---|---|---|
| EV | 46.3% | 44.0% | +2.3 pts |
| PHEV | 53.7% | 46.6% | +7.1 pts |
| Hybrid | 43.8% | 47.7% | -3.9 pts |
PerSource: AADA/AutoGrab
EVs and especially PHEVs are becoming easier to sell without discounting.
By comparison, more than half of all petrol and diesel vehicles sold during May required a discount before finding a buyer, at 50.5 per cent and 51.7 per cent respectively.
Hybrids remained the standout performer in the used market. Less than half required discounting to sell, while they retained an average 94.3 per cent of their original value, making them the most resilient powertrain category.
Plug-in hybrids also continued to perform strongly. Despite entering 2026 with what AADA described as heavy oversupply, PHEV residual values remained remarkably stable, fluctuating between 83.9 and 86.2 per cent throughout the year.
Voortman said the stability suggested demand was strengthening as supply and demand returned to balance.
“Hybrids and PHEVs are now part of mainstream buying habits, with more customers viewing them as practical alternatives that both suit their driving needs and provide efficiency,” he said.
Across the broader market, more than half of all used vehicles sold in May required a price reduction for the first time this year, while average discount depth reached 3.4 per cent, the highest level recorded in 2026.
Residual value performance (May 2026)
| Powertrain | Residual Value (%) |
|---|---|
| Hybrid | 94.3% |
| PHEV | 83.9% |
| EV | 74.7% |
Source: AADA/AutoGrab. Vehicles aged 1-5 years.
Hybrids remain the gold standard, PHEVs are remarkably stable, and EVs have improved from early-2026 lows but still lag the other electrified powertrains.
AutoGrab attributed the increase in discounting to elevated vehicle supply and stronger competition between sellers.
While it’s still early days for Australia’s used EV market, Voortman said recent trends suggested demand was becoming more sustainable.
“As more EVs enter the used market and consumers become increasingly comfortable with the technology, we would expect the used EV market to continue to mature,” he said.
