Australia’s used electric vehicle (EV) market is on the cusp of a significant boom, with new data from auction giant Pickles revealing a substantial increase in regional buyer activity and an anticipated influx of ex-leased vehicles over the next 12 months. This shift is poised to drive down prices and offer greater choice for consumers, making EV ownership more accessible across the country.
According to a report published on July 21, 2026, by Australian auction site Pickles, the popularity of the Federal Government’s Fringe Benefits Tax (FBT) exemption and novated lease packages is a key factor behind this expected surge in available used EV stock. This federal incentive, which exempts eligible zero-emission vehicles from FBT when provided through a novated lease, has reportedly put approximately 100,000 EVs on Australian roads since 2022. As these initial lease agreements mature, a growing number of modern electric vehicles are expected to enter the secondary market.
Data from the Australian Automotive Dealers Association (AADA) further underscores this trend, showing that used EV sales in the first half of 2026 surged by 54.6 per cent year-on-year, with 25,413 used EVs finding new homes between January and June 2026. This robust growth indicates a maturing market and increasing consumer confidence in second-hand electric models.
“As more vehicles enter the secondary market, buyers will have greater opportunity to compare models, technology and price points.” – Brendon Green, General Manager of Automotive Solutions, Pickles Auctions
Regional Demand Fuels Used EV Market Growth
The Pickles Auctions data highlights a notable shift in demand towards regional areas. Nationally, regional postcodes accounted for 32 per cent of used EV purchases in the 2025-26 financial year (FY26), a significant increase from 27 per cent in FY25. Queensland led this regional charge, with the share of used EV purchases by regional buyers jumping from 17 per cent in FY25 to 48 per cent in FY26. Victoria also saw a rise from 16 per cent to 22 per cent, and New South Wales from 29 per cent to 35 per cent.
This regional uptake suggests that concerns about range and charging infrastructure, historically a point of hesitation for prospective EV buyers, are being addressed. The average EV battery capacity has increased by 319 per cent between 2011 and 2026, boosting average claimed driving range from 110km to 432km. While public charging infrastructure is expanding, with over 5,000 public charging sites nationally as of early 2026, the growth in vehicles has outpaced charger deployment by a ratio of six to one. However, state initiatives like NSW’s commitment to chargers every 100 kilometres on major highways are working to bridge these gaps, particularly in regional areas.
The Role of the FBT Exemption and Novated Leases
The Federal Government’s FBT exemption has been a primary driver of new EV sales, making salary sacrificing an electric vehicle a highly attractive option for many Australians. This incentive applies to battery electric or hydrogen fuel cell cars priced under the fuel-efficient Luxury Car Tax (LCT) threshold, which for the 2026/27 financial year is $91,661. This allows buyers to avoid FBT, potentially saving up to $11,000 per year in tax.
While the Federal Budget 2026 announced a phased wind-back of this exemption, with a permanent 25% FBT discount applying from April 1, 2029, and a price cap reduction to $75,000 from April 1, 2027, the current full exemption for eligible EVs valued up to $75,000 remains in place for arrangements commencing before April 1, 2029. This ongoing incentive ensures a continued supply of new EVs entering the market, which will eventually cycle into the used car segment.
What This Means for Buyers
The anticipated boom in the used EV market presents several advantages for Australian consumers:
- Increased Affordability: A larger supply of used EVs will likely lead to more competitive pricing, making electric vehicles accessible to a broader demographic. This is particularly relevant as direct state-based purchase rebates have largely concluded in states like Victoria and NSW.
- Greater Choice: The variety of models available on the used market will expand significantly, offering different price points, ranges, and features.
- Reduced Running Costs: Even used EVs offer substantial savings on fuel, which can offset the higher upfront purchase price compared to internal combustion engine (ICE) vehicles. Drivers can also explore options for home charging to further reduce running costs. For more information on home charging, see our guide on Best Home EV Chargers in Australia 2026: Costs from $1,400 & Smart Features Explained.
However, prospective used EV buyers should also consider factors such as battery health and remaining warranty, which can vary by model and age. Insurance costs for EVs can also be higher, a factor to research when budgeting for ownership. For detailed insights, refer to our guide on EV Insurance Costs Australia 2026: Expect $2,300+ Annually & How to Save.
Used EV Sales Growth (H1 2025 vs H1 2026)
| Metric | H1 2025 | H1 2026 | Change |
|---|---|---|---|
| Used EV Sales (Units) | Not available | 25,413 | N/A |
| Used EV Sales (Year-on-Year) | N/A | +54.6% | +54.6% |
| Regional Share of Used EV Sales (FY) | 27% | 32% | +5% points |
| Queensland Regional Share (FY) | 17% | 48% | +31% points |
This emerging trend signifies a critical phase in Australia’s transition to electric mobility, as the benefits of EV ownership become more accessible to a wider segment of the population through the second-hand market.