Australia’s used electric vehicle (EV) market has experienced a significant surge, with sales of pre-owned battery electric vehicles (BEVs) increasing by 54.6% in the first half of 2026. This growth comes despite a broader softening in the overall used car market, signalling a pivotal shift in Australian consumer preferences and making EV ownership more accessible.
New data released today by the Australian Automotive Dealer Association (AADA) and AutoGrab reveals that while the national used vehicle market declined by 6.6% compared to the same period in 2025, electrified vehicles, including BEVs and plug-in hybrid electric vehicles (PHEVs), bucked this trend.
“While overall sales have softened compared with last year, it’s encouraging to see continued growth in used electric vehicles and plug-in hybrids as more Australians consider lower-emission vehicles in the second-hand market.” — James Voortman, AADA Chief Executive
This robust growth in the second-hand EV market is a critical development for Australian motorists. It addresses long-standing concerns about the upfront cost of new EVs and the availability of more affordable options, pushing electric mobility further into the mainstream.
Key Market Insights from H1 2026
The AADA and AutoGrab report highlights several key trends underpinning this acceleration in used EV adoption:
- Significant BEV Growth: Used battery electric vehicle sales saw a substantial 54.6% increase year-on-year in the first half of 2026.
- PHEV Explosion: Plug-in hybrid electric vehicle (PHEV) sales, though from a smaller base, skyrocketed by 468.4% over the same period.
- Market Share Expansion: Combined, EVs, PHEVs, and traditional hybrid vehicles now account for 7.1% of all used vehicle sales in Australia.
- Faster Sales Cycle: The average time taken to sell a used EV dropped significantly, falling from over 60 days in January to under 40 days by June 2026, indicating strong demand.
- Overall Market Contraction: In contrast, the broader used vehicle market saw 1.3 million sales nationally in H1 2026, a 6.6% decrease from H1 2025, with June experiencing the largest year-on-year decline of 16.2%.
This data underscores a growing appetite among Australian consumers for more sustainable and cost-effective transport solutions. As more new EVs enter the market, a greater supply of used models becomes available, creating a positive feedback loop for adoption.
Driving Factors Behind the Shift
The increasing availability and affordability of used EVs are key drivers. As the initial wave of new EV purchases from earlier years enters the second-hand market, prices naturally become more competitive. This makes electric cars a viable option for a wider demographic of buyers who may have been deterred by the higher sticker price of new models. The estimated Australian price for new entry-level EVs, such as the Xpeng L03, which was recently spotted testing in Sydney with an anticipated price under AUD$45,000, further influences the downward pressure on used EV values.
Furthermore, the long-term running cost advantages of EVs continue to attract buyers. With electricity often being significantly cheaper than petrol, particularly for those with home solar systems, the total cost of ownership over the vehicle’s lifespan can be considerably lower. For strategies on maximising these savings, consider our guide on Optimise EV Charging with Solar This Winter 2026: Max Savings Guide.
Concerns about battery longevity, a common hesitation for used EV buyers, are also being allayed by improving battery technology and robust warranties. Most EV batteries are now expected to last 15+ years in the Australian climate, as detailed in our EV Batteries Last 15+ Years in Australia: Your 2026 Guide to Warranties & Replacement Costs.
Market Dynamics and Future Outlook
The softening in the traditional used car market, particularly for petrol and diesel vehicles, is creating a clear divergence. AutoGrab Chief Executive Saxon Odgers noted that petrol and diesel vehicles are experiencing the greatest discounting, while hybrids have held their value best.
| Vehicle Type | H1 2026 Used Sales Change (YoY) | Average Time to Sell (June 2026) |
|---|---|---|
| BEVs | +54.6% | < 40 days |
| PHEVs | +468.4% | < 40 days (estimated) |
| Overall Used | -6.6% | Varies, generally longer |
This indicates a structural shift, where consumers are increasingly prioritising fuel efficiency and lower emissions, even in the second-hand market. The growing supply of used EVs is also being fed by the record new EV sales observed in June 2026, where BEVs captured 23.5% of all new car sales, with the Tesla Model Y becoming Australia’s best-selling car for the second consecutive month.
The momentum for electric vehicles in Australia is undeniable. The strong performance of the used EV market in the first half of 2026 confirms that the transition to electric transport is deepening, moving beyond early adopters and becoming a more mainstream choice for a broader range of Australian households. This trend is expected to continue as more new EVs enter the market, further populating the second-hand supply and driving down prices, making electric driving a reality for even more Australians.