For many Australians, 2026 marks a pivotal year for electric vehicle (EV) accessibility. The used EV market has matured significantly, offering compelling options under AUD$40,000. Our top picks in this price bracket include the Tesla Model 3 Standard Range Plus (2019-2021 models), Hyundai Kona Electric (2020-2022, long-range 64kWh variant), BYD Atto 3 (2022-2023 models), and the MG ZS EV (2020-2023 models). These vehicles represent a sweet spot, balancing affordability with practical range and modern features, largely driven by the influx of new, cheaper EVs putting downward pressure on second-hand values.
Australia’s EV landscape has transformed rapidly. In 2025, EVs constituted 13.1% of all new car sales, projected to exceed 15% in 2026. This surge in adoption, combined with the natural cycle of early adopters trading up and lease agreements ending, is now populating the used market with more affordable options.
Top Picks: Used EVs Under AUD$40,000 in 2026
When considering a used EV in Australia for under AUD$40,000, several models stand out for their blend of range, features, and depreciation. It’s important to note that many new EVs are now available in a similar price range, such as the BYD Atto 1 (from $23,990 plus on-road costs) or MG4 Urban (from $31,990 drive-away), which can influence used car pricing.
| Model | Typical Used Price Range (AUD) | Key Features & Considerations |
|---|---|---|
| Tesla Model 3 Standard Range Plus (2019-2021) | $25,000 - $35,000 | Excellent software, strong Supercharger network access. Look for 2020-2021 models with under 80,000 km. Check for panel gaps and older Media Control Unit (MCU) issues. |
| Hyundai Kona Electric (2020-2022, 64kWh) | $25,000 - $33,000 | Underrated, 64kWh long-range offers ~449km WLTP. Good reliability, strong battery health retention. |
| BYD Atto 3 (2022-2023 Extended Range) | $30,000 - $37,000 | Significant depreciation from new, offering great value. Modern interior, good features, decent range. Check service history. |
| MG ZS EV (2020-2023 Essence/Long Range) | $25,000 - $35,000 (est.) | Practical small SUV, competitive range for its class. Earlier models offer entry-level EV experience. Newer Long Range variants offer improved battery capacity. |
| Polestar 2 (2021-2022 Entry-Level) | $32,000 - $39,000 | Premium feel, Google Android Automotive OS. Entry-level single-motor variants are now reaching this price point. |
Key Considerations When Buying a Used EV
Battery Health and Longevity
One of the primary concerns for used EV buyers is battery degradation. However, real-world Australian data provides reassurance. Research indicates that average EV battery health exceeds 90%, even for vehicles that have travelled more than 120,000 kilometres. EVs older than four years typically retain at least 93% of their original capacity. Degradation is a gradual process that slows over time, rather than a sudden drop.
“Average battery health exceeded 90%, even for vehicles that have travelled more than 120,000 kilometres.”
While most EVs don’t display a ‘State of Health’ (SoH) percentage on the dashboard, you can request a diagnostic report from a dealer or use a third-party OBD2 scanner with a compatible app. The NRMA also offers an EV Battery Health Check service for AUD$250 (members) or AUD$300 (non-members), providing an independent assessment.
Most manufacturers offer a battery warranty, typically 8 years or 160,000 km, guaranteeing a certain percentage of original capacity (often around 70%). Always verify the remaining warranty on any used vehicle.
Range and Your Driving Needs
Consider your daily commute and typical long-distance travel. While a 200-300km WLTP range might suffice for city driving, longer trips will benefit from a 400km+ range and faster charging capabilities. Factor in that battery degradation, though minimal, will slightly reduce the original stated range. For a detailed comparison of new options, refer to our guide on Cheapest Electric Cars Available in Australia in 2026.
Service History and Software Updates
Ensure the vehicle has a complete service history. EVs have fewer moving parts than internal combustion engine (ICE) cars, but regular checks are still important. Software updates are crucial for optimising performance, battery management, and infotainment. Verify if updates have been consistently applied, especially for models like the Tesla Model 3.
Understanding Australian EV Rebates and Incentives in 2026
Direct purchase rebates for used electric vehicles are rare in 2026, as many state-level incentives have wound down or focused on new vehicles. However, some valuable benefits remain:
- Federal Fringe Benefits Tax (FBT) Exemption: This is the most significant incentive. If you purchase an eligible EV (under the Luxury Car Tax threshold of AUD$89,332 for 2026) through a novated lease via your employer, you could save AUD$6,000–$12,000 per year. This applies to both new and used eligible EVs.
- ACT: The Australian Capital Territory offers 3% low-interest loans (AUD$2,000–$15,000) for the purchase of new or used EVs and associated charging infrastructure. ZEVs also benefit from discounted registration and stamp duty.
- Northern Territory: Until June 30, 2027, the NT offers a stamp duty concession of up to AUD$1,500 for EVs valued up to AUD$50,000, and free registration for new and existing BEVs and PHEVs.
- Queensland: While the upfront rebate ended in September 2024, Queensland continues to offer a AUD$200 annual registration discount and lower stamp duty rates (2% for values up to AUD$100,000).
- Victoria: As of January 1, 2026, Victoria has no remaining direct EV incentives, with the AUD$100 annual registration discount having concluded.
- NSW, SA, WA, Tasmania: Most direct purchase rebates and stamp duty exemptions in these states have concluded for individual buyers, though some offer low-interest loans for charging infrastructure or lower registration fees.
Always check your specific state or territory government website for the most current information, as incentives can change.
Charging Your Used EV: Home & Public Infrastructure
Australia’s EV charging network is rapidly expanding. As of early 2026, there are over 5,000 public EV charging sites across the country, including a growing number of fast DC chargers. The fast-charging network alone grew to over 1,310 locations with more than 3,400 plugs by early 2026.
Many new sites are being equipped with ultra-fast chargers capable of delivering 150kW to 350kW, significantly reducing charging times. Notably, over 60% of the Tesla Supercharger network in Australia is now open to non-Tesla EVs, boosting accessibility.
For most EV owners, home charging remains the primary method, accounting for approximately 80% of all charging. Installing a dedicated Level 2 (240V) home charger can dramatically improve convenience. For details on costs and types, refer to our guide: How Much Does an EV Home Charger Cost to Install in Australia 2026? A Guide to Types, Prices & Installation.
While direct home charger rebates are limited, Tasmania offers interest-free loans up to AUD$10,000 for EV chargers via its Energy Saver Loan Scheme. South Australia is awaiting the release of its 2026 Retailer Energy Productivity Scheme (REPS) for charger rebates.
The Financials: Beyond the Purchase Price
When budgeting for a used EV, consider these ongoing costs:
- Registration & Stamp Duty: As noted, these vary by state, with some offering concessions for EVs. Factor these into your budget.
- Insurance: EV insurance costs are becoming more competitive as the market matures. Obtain quotes for specific models.
- Servicing: EVs generally have lower servicing costs due to fewer moving parts. However, specialised EV technicians are still recommended.
- Charging Costs: Charging at home during off-peak hours or via rooftop solar is significantly cheaper than petrol. Public fast charging costs more but is still often less than refuelling an ICE vehicle. This is a key driver for lower running costs.
Bottom Line
The Australian used EV market under AUD$40,000 in 2026 presents genuinely attractive options. The increased supply from maturing new car sales, coupled with significant depreciation on popular models like the BYD Atto 3 and early Tesla Model 3s, means buyers can access modern electric motoring at a compelling price point. While direct rebates for used EVs are minimal outside the ACT and NT, the federal FBT exemption via novated lease offers substantial savings for many. Prioritise models with proven battery health, a good service history, and a remaining manufacturer warranty. With Australia’s charging infrastructure rapidly expanding, range anxiety is diminishing, making a used EV a smart and sustainable choice for a growing number of drivers.