Australians turn to hybrids as rising fuel costs drive used car demand 

Rising fuel costs and broader cost-of-living pressures are reshaping Australia’s used vehicle market, with buyers increasingly shifting toward electrified options; particularly hybrids, according to data from AutoGrab and the Australian Automotive Dealer Association (AADA).

While electric vehicles continue to attract attention, the data shows the strongest momentum is currently in hybrids, supported by tight supply, strong resale values, and consistent buyer demand.

Read more: What is a hybrid vehicle? Everything you need to know

Hybrids emerge as the dominant electrified choice

Between January and April 2026, 28,395 used hybrid vehicles were sold nationally, accounting for 11.2% of all used 2021–2025 model-year sales. Key market signals include:

• Hybrid supply tightened from 53.8 days (Jan) to 42.3 days (Apr)
• Petrol and diesel stock levels moved in the opposite direction
• Buyers prioritise lower running costs without changing driving or charging habits

Toyota continues to dominate the segment, with the RAV4 and Corolla representing the majority of high-volume hybrid sales and consistently fast turnover times.

Top-performing used hybrids (2021–2025)

Residual values remain a key strength in the segment, with 2025 hybrid models retaining over 100% of original purchase price on average, while 2021 models still hold around 88.2%.

Read more: 10 most affordable hybrids in Australia in 2026

PHEVs grow, but performance remains uneven

Used plug-in hybrid (PHEV) sales reached 7,536 units year-to-date, representing 3.0% of the used market. The segment saw a demand spike in March, coinciding with fuel price increases, but performance varies widely by model and brand. Chinese manufacturers are increasingly present in the used PHEV space, led by BYD. However, market depth remains inconsistent.

Selected used PHEV performance snapshot

The BYD Shark 6 recorded the fastest turnover in the segment, with just 18.5 days’ supply, indicating strong buyer demand for newer Chinese PHEV offerings.

Read more: Top 10 best-selling PHEVs in Australia in 2025

Broader used market shows steady activity

In April 2026, the used vehicle market recorded:

• 343,021 listings (+4.7% month-on-month)
• 203,525 sales (-8.7% vs March)
• 44.1% dealer share of transactions
• Average days to sell: 44.6 days

Despite softer monthly sales volumes, transaction efficiency remained broadly stable.

Read more: Top 10 best-selling hybrid cars in Australia

Industry view: affordability driving structural shift

James Voortman said the data highlights a clear shift in buyer priorities. He noted that fuel price volatility has accelerated interest in electrified vehicles, with hybrids playing a central role due to their lower running costs and ease of adoption.

Saxon Odgers said external pressures, including fuel price spikes linked in part to geopolitical instability, have reinforced the economic case for electrified transport. He added that tightening hybrid supply compared with rising petrol and diesel inventory levels signals a clear directional change in buyer demand.

Summary

The used vehicle market in early 2026 is increasingly defined by cost sensitivity. Hybrids are emerging as the most stable electrified segment, PHEVs are growing but uneven, and overall buyer behaviour is shifting decisively toward lower running cost vehicles rather than pure performance or legacy fuel type preferences.

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