Electrics gain ground in used car market as BYD signs auction deal for second hand EVs

Low-emission vehicles are gaining traction in Australia’s used car market, driven by motorists’ efforts to reduce fuel consumption amid rising petrol and diesel prices. Recent sales data from May reveals that hybrid vehicles dominate the second-hand segment, proving more popular and resilient to price cuts than fully electric models. The Australian Automotive Dealer Association and AutoGrab reported a notable recovery in used car sales following a dip in April, with total purchases reaching over 221,000 vehicles, marking a significant month-on-month increase. Hybrids accounted for around 10 per cent of used cars sold that were up to five years old, while electric and plug-in hybrid models made up six per cent. The preference for hybrids is attributed to their practical fuel efficiency and established reliability, making them an attractive option for budget-conscious buyers. According to association chief executive James Voortman, hybrids maintained strong resale values, retaining over 93 per cent of their worth, in contrast to petrol and diesel cars, which frequently required price reductions to sell. The competitive nature of the used car market has shifted bargaining power towards buyers, with many petrol and diesel vehicles being discounted to secure sales. Voortman highlighted that consumers now have greater leverage to compare options and negotiate prices, reflecting a dynamic market environment. This shift underscores the growing consumer demand for economical and environmentally friendly vehicles, as well as a maturing market for low-emission alternatives. In a significant development for the second-hand electric vehicle (EV) market, BYD Australia has entered a three-year partnership with auction house Pickles to sell its used fleet vehicles. This collaboration signals increased confidence in the resale value and accessibility of EVs, according to Pickles’ motor vehicles general manager Chris Shaw. He emphasised that as pricing becomes more competitive and public understanding of EV ownership improves, used electric vehicles are becoming a viable option for a broader range of buyers. The deal between BYD and Pickles represents a milestone in the evolution of Australia’s used EV market, potentially accelerating the adoption of electric vehicles beyond new car sales. With nearly half of new vehicles sold recently being hybrids or EVs, the expansion of the second-hand market could help sustain this momentum. As consumer acceptance grows and infrastructure develops, the availability of affordable used electric cars is likely to play a crucial role in the country’s transition towards cleaner transport.