Despite a sluggish start, the adoption of electric vehicles (EVs) in Australia has largely increased over the past year, thanks to the easing of supply constraints and a growing interest among motorists to transition from traditional petrol cars.
However, the price tag associated with new EVs remains high for most Australians, making purchasing a second-hand EV a more practical and affordable option.
Growing number of second-hand EVs on Australian roads
The presence of second-hand EVs on Australian roads is not a recent development, with some motorists having driven around in these models for several years. Many Australians are shifting from internal combustion engine vehicles (ICEVs) to second-hand EVs, with the latter still representing a fraction of the second-hand car market.
Latest data is pointing towards a change as consumers upgrade to newer models, resulting in a substantial growth in second-hand EVs in 2024 and 2025. This surge is expected to be driven primarily by government and fleet management companies, (early adopters of EVs), as their leases reach the end of their life.
What to look for when buying a second-hand EV
When deciding to purchase a second-hand EV, one of the primary considerations is the EV’s battery’s health, given its status as the most expensive component of an EV and the potential high replacement cost. While assessing battery health can currently pose challenges, independent EV consultants suggest that this process will become more straightforward over time, thanks to the growth of diagnostic apps and EV-trained mechanics. Newer EV models boast impressive battery longevity, mainly due to advanced cooling systems and tight battery management systems.
Battery health, tyre wear are key considerations.
Battery health and tire wear are crucial factors among second-hand EV buyers. Some older EVs might necessitate a replacement battery, with costs reaching up to $15,000. However, these replacement batteries are becoming more affordable and can effectively double the lifespan of the car. It’s essential to ensure that the batteries are covered by a manufacturer’s warranty, typically ranging from 6 to 10 years.
Regarding affordability, the price range for second-hand EVs varies widely, with some early-generation models available for around $10,000. However, the majority fall within the $30,000 to $50,000 range. As the market expands and supplies improve, there is an expectation that second-hand EVs will become increasingly affordable. This trend is not exclusive to second-hand EVs, as several manufacturers are introducing new models in the $40,000-45,000 price range.
What about hybrids?
Hybrid cars, which combine electric and conventional engine power, were once prominent in the EV market but now represent only a fraction of new EV sales as fully battery electric vehicles (BEV) gain popularity. Despite their decline, hybrids remain attractive, particularly for those concerned about “range anxiety.”
The federal government argues that plug-in hybrid electric cars, capable of charging from a power point and filling up at a service station, are crucial in the EV mix, especially for Australians in regional areas.
As Australia’s electric vehicle market is poised for rapid expansion, concerns linger about universal access to power for EVs. For those seeking a low-emission vehicle, second-hand hybrids may appear cleaner than traditional petrol or diesel cars. Nevertheless, ongoing debates about their environmental credentials persist, with recent studies suggesting that plug-in hybrids might be dirtier than previously thought. If you’re uncertain about purchasing a second-hand EV, contact the team at Automotive Insight for more information.