Australia’s used EV sales surge despite softer market

Australia’s used vehicle market softened during the first half of 2026, but demand for used electric vehicles and plug-in hybrids continued to grow strongly as buyers increasingly turned to lower-emission vehicles.

New data from the Australian Automotive Dealer Association and AutoGrab shows just over 1.3 million used vehicles were sold nationally during the first six months of the year, down 6.6% on the same period in 2025.

The market weakened as the year progressed, with June recording the largest year-on-year decline of 2026. Used vehicle sales were down 16.2% compared with June last year.

Despite the broader downturn, electrified vehicles continued to gain momentum. Used EV sales increased 54.6% year-on-year during the first half, while plug-in hybrid (PHEV) sales jumped 468.4% from a relatively small base. Combined EV, PHEV and hybrid sales accounted for 7.1% of the used vehicle market.

Used EVs also sold more quickly as the year progressed, with average days to sell falling from more than 60 days in January to fewer than 40 days by June.

James Voortman says buyers have gained greater bargaining power as vehicle supply has increased.

“The used vehicle market has become increasingly competitive during the first half of 2026. Buyers have more choice than they’ve had for some time, and dealers are responding to that environment through more competitive pricing and discounting,” Voortman says.

“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.”

The increase in supply also placed downward pressure on prices.

By June, more than half of all one-to-five-year-old used vehicles sold had their asking price reduced before sale, with the average discount widening to 3.7% – the largest average discount recorded so far this year.

Petrol and diesel vehicles experienced the greatest increase in discounting, while hybrids remained the most resilient fuel type.

Saxon Odgers says the shift highlights the importance of accurate pricing.

“Year-on-year sales declines widened over the half, with June recording the largest decline of the year to date. Every State and Territory sold fewer used vehicles in the half of 2026 than in the equivalent period in 2025. And the sales decline was concentrated in passenger cars, with SUVs and Utes recording smaller falls,” Odgers says.

“By June, more than half of all one-to-five-year-old vehicles were selling below their asking price, and the average discount had widened to 3.7 per cent. In that environment, accurate and current pricing is the difference between a car that sells and one that sits. Petrol and diesel are carrying most of the pressure, while hybrids have held their value best.”

Odgers says electrified vehicles remain the standout performers.

“Electrified vehicles are the clear exception. Used EV sales rose 54.6 per cent and sold faster as the year progressed, with average days to sell falling from over 60 in January to under 40 by June. The volume growth is now well established in the Australian market.”