Australia’s second-hand car market shift due to petrol price surge and EV demand spike
Consensus Summary
Australia’s second-hand car market is experiencing a dramatic shift as petrol prices surged nearly 50% due to geopolitical tensions, driving demand for electric vehicles (EVs) and causing a sharp divergence in used car prices. Both THEAGE and GUARDIAN report that used EV prices like the Tesla Model Y and Model 3 have risen significantly—up to 6.3% for the Model Y since listings began—while petrol and diesel vehicles have seen steep declines, with some models dropping 15% to 20%. MotorMetrics data confirms this trend, showing critically low stock levels for EVs, with supply for models like the Polestar 2 dropping to just 2-3 days. The Guardian highlights a 70% increase in EV rental demand and a 161% spike in EV loan applications, while THEAGE notes dealers are raising prices confidently, signaling long-term demand shifts. Both sources agree Australia’s EV market share has reached 13% of new purchases, but THEAGE focuses on the immediate market reaction to fuel prices, while the Guardian emphasizes broader adoption trends and historical lag in EV uptake. Contradictions exist in the timing and magnitude of price changes, but the core narrative remains clear: rising fuel costs are accelerating EV adoption and reshaping the used car market.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- MotorMetrics data shows Tesla Model Y used prices rose 3.63% in the first fortnight of March (THEAGE) and over 6% in the last two weeks of March (GUARDIAN).
- MotorMetrics data shows Tesla Model 3 used prices rose 1.39% (THEAGE) and also increased in the last two weeks of March (GUARDIAN).
- Used EV stock levels are critically low, with Polestar 2 supplies down to 2-3 days (THEAGE) and MG ZS supplies down to 5 days (THEAGE).
- Used petrol/diesel vehicles saw significant price drops, including Haval H6GT down 15.5% (THEAGE) and up to 20% for some models (GUARDIAN).
- Petrol prices in Australia surged by almost 50% due to geopolitical tensions (THEAGE) and increased daily in March (GUARDIAN).
- More than 454,000 battery electric and plug-in hybrid electric vehicles were on Australian roads by the end of 2025 (GUARDIAN).
- EV market share in Australia reached about 13% of new purchases (GUARDIAN).
- Commonwealth Bank data shows a 161% lift in weekly loan volume for new battery electric vehicles in March compared to February (GUARDIAN).
Points of Difference
Details reported by only one source:
- Used Renault Kangoo (electric) prices rose 3.13% in the first fortnight of March.
- Used Tesla Model Y prices rose 6.3% since first listing (not just last two weeks).
- Used Tesla Model 3 prices rose 4.9% since first listing.
- Fiat 500 is the only petrol vehicle in the top five price increases, up 0.4%.
- Biggest price drops for used petrol/diesel vehicles: Mahindra XUV3X0 down 15.5%, Haval H6GT down 11.9%, GWM Jolion down 11.9%.
- Used Haval H6GT prices dropped 20.5% since first listing, Lexus LX diesel down 15.1%, Genesis GV80 down 15%.
- MotorMetrics founder Jake Sale explicitly states ‘listing price movements are often the earliest sign of changing demand’ and ‘EVs are behaving very differently to petrol cars’.
- Traditional supply for EV models is normally about 75 days, but some now have less than 10 days of supply.
- Used MG4 and Polestar 2 prices also rose in the last two weeks of March alongside Tesla models.
- Rental demand for EVs and hybrids increased 70% compared to the same period last year (Turo Australia).
- Peter Esho (Eshō Capital economist) states ‘EVs are now a credible option for many passenger vehicles’ and this shock ‘could exponentially accelerate adoption’.
- Har Rai Singh rented EVs to test them before buying, citing ‘slight niggles’ with charging infrastructure but concluding ‘it doesn’t make sense to hold on to a combustion engine’.
- The Guardian highlights Australia’s historical lag in EV adoption compared to Canada and New Zealand due to political division.
Contradictions
Conflicting information between sources:
- THEAGE reports Tesla Model Y prices rose 3.63% in the first fortnight of March, while GUARDIAN reports a 6% increase in the last two weeks of March (no overlap in timeframes).
- THEAGE states used Tesla Model Y prices rose 6.3% since first listing, but GUARDIAN does not mention this longer-term increase.
- THEAGE reports used Tesla Model 3 prices rose 1.39% in the first fortnight and 4.9% since first listing, while GUARDIAN only mentions a rise in the last two weeks without specifying the magnitude.
- THEAGE lists specific price drops for Mahindra XUV3X0 (15.5%), Haval H6GT (11.9%), and GWM Jolion (11.9%), while GUARDIAN only states ‘up to 20%’ for diesel/petrol vehicles without model specifics.
- THEAGE attributes the price shift to ‘petrol pain’ and ‘events playing out in the Middle East,’ while GUARDIAN emphasizes ‘the oil crisis’ and ‘petrol prices increased almost every day in March’ without direct geopolitical attribution.
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