Used car sales are booming in Australia. That’s a fact!  Sales are up 16 % for the first half of 2024, compared to the first half of 2023!  So let’s wrap up and outlook focusing on the growth of the fast emerging, Used EV market in Australia.

Firstly, whether this overall growth is driven by the revival of new cars back in stock after Covid (remember that) or perhaps this year, with the tighter Australian economy, Used cars demand is growing strongly, up 16.5% year to date, with total used car sales in Australia easily set to top the 2.2million sold in 2023.

That’s according to figures from Autograb, who specialise in used car sales data and AADA, the Australian Automotive Dealer Association – the peak body for used automotive dealers in Australia, who count and care about these things.

Don’t forget also (and no sponsorship here). Thanks to Autograb data, they can give you a very good indication of the value of your used car, comparing it to recent sales and other cars currently on sale across the various platforms in Australia.

Sometimes, the used car market is considered the new car market’s poor cousin.  But we are here to talk about the used EV market! (no Hybrids)which in Australia is only small, so far it’s very small.

Only 11,652 used, Battery only Electric Vehicles, or BEV’s sold in 2023. Or, only 0.6% of the whole used EV market in Australia

Now let’s compare this with the Used EV market in the first six months of 2024?

EV sales have increased to 0.8% market share, or 8,531 EV’s – in the first half of 2024 – up 83% (82.4%) over the same period last year.

And, the number of EV listings across all channels have also increased 75% to 9,484 over the same period last year.
But if we look at the UK, this grow is to be expected. There new EV growth has slowed down, but used EV’s now represent 2% of the total used EV market!

Ian Plummer, commercial director at Auto Trader said,
“We have reached that price parity point that bridges the affordability gap for the consumer,”

Although EV sales still account for only about 2 per cent of the overall used-car market in the UK, almost a 10% of secondhand vehicles under five years old put up for sale on Auto Trader’s platform are now fully electric, compared with under 1 per cent four years ag0.

Used Car Sales by Fuel Type – H1,  2024

And from the International Energy Agency (IEA), Global EV Outlook 2024.

“Second-hand markets are critical to foster mass-market adoption, especially if new electric cars remain expensive, and used ones become cheaper. Used car markets already provide more affordable electric options in China, Europe and the United States”

Back here in Australia, Tesla, as you’d expect still represent a large share of the new EV market, with 25.7% of the used EV market. Then MG, Kia, BMW.

Many have seen big changes in numbers compared to June 2023, but you’d expect big increases over the course of the year, coming from a very low base. That’s the sign of a very young market.

Surprising to me, or maybe not so to their owners, BYD are not up there in the second hand market with any presence. – just yet!

And we expect the the pricing of used EV’s to continue to make them more affordable.

I remember what my colleague from Autograb, Chief Commercial Officer, Saxon Odgers, told me early on,“the only thing that matters with used cars is price!”

A used car buyer has to have a motivation for buying a used car, and that’s usually price.  Otherwise, of course they’d buy a new one.

The recent price cuts by most EV brands, some were pretty expensive to begin with (compared to ICE cars) has certainly deflated used car prices recently.  But the upside of that is they’ve become more attractive to used car buyers, and entered what I call the “Used Car Buyer Price Zone.”

That’s the $25 -35k range, where it’s really affordable to buy, the finance payments are just right and the car represents good, long term value.

EV’s are just now entering that range!

Used EV Sales Brand – YTD 2024

Take it from an old F&I guy (Dealer Finance & Insurance) from the 90’s, many sales began and ended with a question to the customer, “how much can you afford a month”? Many car were sold on a buyers monthly budget, and still are.

We can take guidance from the UK, that it won’t belong before EV’s get to 2% of the total used car market here, or around 40,000 used EV sales – then onwards and upwards.

Mike Hawes, chief executive of SMMT. (Society of Motor Manufacturers & Traders in the UK) said:

“If you are uncertain about buying a new car because it is too expensive, you tend to look elsewhere. If you want an EV, then buying it used is a way into the market that has become affordable.”

And finally, despite headwinds like, yes, we expect EV owners to keep their cars longer (why would they sell), yes, there’s falling new EV prices is leading to bigger depreciation on used EV’s, and yes the whole media seem to be against EV’s at the moment.

The used EV market will stablise and flourish as he demand for used EV’s evolves.

Buying a used EV right now has never made more sense..H1