Used electric vehicle (EV) prices in Australia are dropping sharply, with some models losing nearly half their original value as new car pricing strategies and increased competition ripple through the second-hand market.
Data from financial broker Savvy, drawn from RedBook vehicle pricing, shows a 2022 Tesla Model Y rear-wheel drive has depreciated by roughly 48 per cent since purchase, highlighting the rapid value loss early EV adopters are facing. Other popular EVs are also seeing steep declines, with the BYD Atto 3 down 39 per cent.
Savvy attributes this trend to the fast-evolving EV landscape. The arrival of new models and aggressive pricing from manufacturers are reshaping buyer expectations, putting pressure on resale values.
The effect, according to Savvy, is the emergence of a buyer’s market for used EVs, offering an affordable entry point for consumers previously deterred by high upfront costs.
“While depreciation can be tough for new car buyers, it creates real opportunities for Australians looking at the used EV market,” said Savvy spokesperson Adrian Edlington. “For drivers curious about electric vehicles but hesitant about the upfront cost, the second-hand market is quickly becoming one of the most cost-effective ways to make the switch.”
With EV market choice expanding under the NVES CO2 scheme and demand gradually rising, the key question remains: will the current wave of used EV bargains continue?
