Private used EV market surges as dealers watch from sidelines

• Private buyers account for 60 per cent of used EV sales
• Second-hand EV sales are up 20 per cent nationally
• Pickles data shows age is not a factor in battery health

Australia’s used electric vehicle market is at a tipping point according to data from vehicle auction house Pickles, with private buyers enthusiastically entering the market but dealers remaining cautious.

Concerns around battery health have historically made potential buyers, whether private or commercial, cautious. This is despite international data indicating EV batteries can last as long as 20 years.

Now, local data from Pickles’ latest quarterly automotive report shows that buying a used EV isn’t the gamble many still assume it to be.

The average ‘state of health’ of a used EV battery is 93 per cent. Additionally, the report says battery health is all about charging habits and nothing to do with mileage.

Over the past year, Pickles' top 10 trade buyers snapped up more than 7000 used internal combustion engine vehicles but only 26 EVs. Meanwhile, private buyers now account for 60 per cent of all used EVs sold through Pickles, underlining just how quickly consumer confidence is shifting.

Dealer reluctance explained

Dealer hesitance primarily revolves around two main concerns: price volatility and uncertainty surrounding battery health.

According to Pickles, commonly voiced dealer anxieties include statements like, “I’m nervous about price volatility – it’s moved around a lot in the past two years, and I’ve been caught out before,”

Yet, emerging evidence strongly suggests these fears are overstated. Pickles' says its battery assurance program offers clear insights, demonstrating that EVs with higher mileage – those surpassing 60,000km– often exhibit battery health comparable to vehicles with significantly lower mileage. This crucial data undermines the longstanding belief that higher mileage directly contributes to increased battery degradation.

The rise of consumer confidence in used EVs

In contrast to dealer reluctance, Pickles says that private used EV buyers are savvy about the minimal risks involved in buying a used EV.

It points out four main factors driving this increase in confidence:

1. Private buyers understand the long EV battery warranties offered by carmakers.
2. They also understand there is less servicing and maintenance required for EVs as there are fewer 'wear-and-tear' components.
3. Ex-fleet and government used EVs are sold with solid servicing histories.
4. Extensive research to understand which EV fits their lifestyle.

The added kick of rising interest rates and living costs has added to the increased uptake in private used EV purchases.

Stable prices, solid data

Used EV prices have also seen significant stabilisation. Dropping from around $55,000 in early 2023 to approximately $36,400 by mid-2024, average prices have now hovered within $500 of that for the past nine months. The reduced variation in pricing is restoring buyer confidence.

Chris Shaw, general manager of motor vehicles at Pickles, underscored the auto market’s evolution in a release from the auction house, saying: “The cessation of steep monthly price fluctuations has brought renewed confidence, particularly among private buyers who now dominate the used EV market.”

Further reinforcing market stability, national used EV sales volumes have climbed about 20 per cent compared with a 3.6 per cent rise in sales volume of traditional ICE vehicles.

Rising demand for salvaged EVs

The market for salvaged EVs is also experiencing significant growth. In the past year alone, Pickles has observed salvage EV sales triple, driven largely by two key buyer groups: second-life battery manufacturers and vehicle exporters. With over four million Australian homes now equipped with solar panels, second-life battery manufacturers are repurposing EV batteries for home and industrial energy storage solutions.

Meanwhile, international markets such as New Zealand and the Middle East are increasingly sourcing Australian salvage EVs either for repair and resale or for parts. The growing salvage sector highlights an evolving value chain and expanding opportunities within Australia's EV market.

The numbers at a glance:

• 60 per cent of used EV sold through Pickles in Q1 2025 were bought by private buyers.
• Used EV prices are now hovering around $36,400.
• Average battery health across 400 tested vehicles stands at 93 per cent.
• Used EV sales volume increased about 20 per cent nationally through Pickles in Q1 2025.
• ICE vehicle prices rose six per cent, indicating sustained demand alongside growing EV interest.
• Sales of salvaged EVs has tripled, and 650 salvage sales are expected by the end of the financial year.

Pickles says dealers should acknowledge and adapt to these rapidly evolving market dynamics. As Brendon Green, GM for Pickles' Automotive Solutions, notes: “The early adopters have already moved on, and mainstream consumers now clearly understand their preferences and expectations. It is imperative for dealers to recognise and respond to this shift – there's no better time to catch up than now.”