The Australian market for used electric vehicles is young and volatile according to the 2023 Automotive Industry Report (AIR) which was compiled by the Australian Automotive Dealers Association (AADA) and AutoGrab.
The sale of used EVs amounted to 12,051 units accounting for 0.7% of the total market of used cars sold in 2023.
Tesla constituted 36.4% of all used EV sales followed by MG with 14.6% and Nissan with 8.2% market share.
“Prices of used electric vehicles dropped more than conventional fuel-type vehicles in 2023. The days taken to sell also increased by 50% from March to December, moving from 50 days to 75,” AutoGrab chief commercial officer Saxon Odgers says.
“In spite of a 0.7% market share, we’ve seen a significant increase in available volume compared to the previous year. We expect to see the volume of used EVs increase in the upcoming months as the market share for new EVs continues to expand and this flows through to the used car market,” he says.
The AIR says the volatility of the used EV market is potentially attributable to several factors.
- The implementation of the FBT exemption in November 2022 applicable solely to EVs and PHEVs first sold and delivered after July 1, 2022, prompted existing owners to sell their non-exempt vehicles and potentially acquire newer or identical vehicles through novated leasing for more economical ownership. This surge in supply contributed to an increase in the availability of EVs.
- Uncertainty surrounding the battery health of used EVs deterred prospective second-hand buyers.
- Pricing competition between major EV manufacturers coupled with the introduction of more new models in Australia led to a reduction in the prices of new EV’s negatively impacting the used car prices.
As a result, the pricing of used EVs experienced the most substantial decline in 2023, accompanied by prolonged days to sell compared to conventional fuel-type vehicles.
For EVs aged less than two years, the price peaked in February at 98.1% RV but fell by 15.6% to 82.8% RV in December 2023 stop
This considerable drop in value is significant, considering EVs typically have higher recommended retail prices than equivalent internal combustion engine models
During this time the number of days needed to sell a used EV increased significantly by 25 days to 75 days.
Used EVs aged between two and four years also experienced a substantial decline, dropping by 23.4% in pricing from the March peak of 75.2% (excluding an anomaly in January) to a December low of 57.6%.
It has also witnessed the highest days to sell compared to any other fuel types and age groups as of December 2023.
It is important to note that the price trend of EVs can be quite volatile every month largely attributed to this smaller sample size compared to other fuel types.
