Used EV market surges in Australia as fuel prices spike

Australia’s used electric vehicle (EV) market recorded a sharp surge in March 2026, as rising fuel prices pushed buyers toward lower running-cost alternatives.

The spike in activity coincided with escalating tensions in the Middle East, which led to a noticeable increase in domestic fuel prices and a rapid shift in consumer behaviour.

Used EV sales more than doubled month-on-month, rising from 3,176 units in February to 7,557 units in March. At the same time, supply tightened significantly, with available stock falling 38% to 5,129 units.

This imbalance has compressed days of supply to just 28.6 days, well below the typical 60–90 day range,  firmly shifting the segment into a seller’s market.

Demand driven by affordability and availability

The surge in demand has largely been led by value-oriented EVs, particularly those from Chinese manufacturers, along with strong dealer representation across high-volume models.

This suggests buyers are prioritising affordability and running costs over brand prestige, especially as fuel prices remain volatile.

Prices begin to stabilise

After softening through late 2025, used EV prices have started to stabilise and show early signs of recovery since January 2026. However, the rebound remains uneven across different model years and segments.

The recent spike in demand is now beginning to place upward pressure on residual values, although it is still unclear whether this trend will sustain in the long term.

Broader used car market remains steady

Beyond EVs, the wider used car market also posted steady growth in March.

• Total listings rose 1.9% month-on-month to 327,762 units
• Sales increased 4.2% to 222,810 units
• Average days to sell improved slightly to 45.6 days (down from 46.6 days in February)

Dealer activity remained strong, accounting for 45.22% of total sales, underlining their continued role in market stability and vehicle distribution.

Industry response

According to Australian Automotive Dealer Association (AADA) CEO James Voortman, rising fuel costs are directly influencing buying decisions.

“Rising fuel prices are clearly influencing consumer behaviour, with more Australians turning to used EVs as a practical and cost-effective alternative.”

He added that the broader market continues to show resilience, supported by steady sales and improving transaction times.

AutoGrab Chief Commercial Officer Saxon Odgers described the shift as sudden rather than gradual.

“Used EV sales more than doubled in a month while supply dropped sharply, creating a significant opportunity for dealers with the right stock.”

He also noted that while residual values have been stabilising since January, the March surge is now adding upward pressure on pricing.

Outlook

The sustainability of this surge will depend largely on fuel price trends. However, March’s data highlights a clear shift in buyer priorities, with cost of ownership becoming a central factor in vehicle purchasing decisions.

If fuel prices remain elevated, demand for used EVs is likely to stay strong, further tightening supply and supporting price recovery in the months ahead.