Shock report! Used EVs are losing value faster in Australia and taking longer to sell
Used electric vehicles take longer to sell in Australia than petrol and diesel cars and have below average retained value, a new report has found.
The assessment of the 2023 Australian used car market dubbed the Automotive Insights Report was compiled by automotive data analytics company AutoGrab and the Australian Automotive Dealers Association.
It also found that second-hand EVs accounted for just 0.6 per cent of the market, compared to 7.2 per cent of the new car market.
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While the report said used EV private and dealer sales almost doubled to 11,652 in 2023 in Australia, the total used car market added up to 2,074,535 units.
Unsurprisingly, new EV market leader Tesla was found to be the biggest used EV sales brand, with 4377 examples of its model range changing hands in Australia in 2023.
That translates to 37.6 per cent of the used EV market, or more than 2.5 times the share of number two MG, which had 1638 used sales and a 14.1 per cent share.
Nissan completed the used EV rostrum with 980 sales and an 8.4 per cent share.
The report found EVs aged less than two years sold at 98.1 per cent of their recommended retail price (or retained value) in February 2023, but had fallen 15.6 per cent to an 82.8 per cent RV by December.
Two to four year old EVs dropped in value by 23.4 per cent to a 57.6 per cent RV by December 2023.
Days taken to sell increased from 51 to 75 days for EVs aged less than two years in this period, while older EVs took longer than any other fuel types and age groups to move, climbing from 54 to 76.9 days.
The national weighted average for RV reduction for the overall used market over the 12 months was 11.6 per cent and the average days to sell ended the year at 50.9.
Factors contributing to used EV sales trends cited by the report authors included:
- The implementation of the FBT exemption in November 2022 that potentially prompted EV owners to acquire new vehicles, contributing to an increase in the availability of used EVs.
- Uncertainty surrounding battery health of used EVs deterring some potential buyers.
- Pricing of new EV models coming down, negatively impacting used EV prices.
The authors of the report did caution the EV pricing findings were volatile because of the small amount of vehicles involved.
Meanwhile, 56,870 used hybrids were sold and 1208 PHEVs. Petrol engines accounted for more than 1.3 million sales and diesels over 600,000.
Just as it dominates the new car market, Toyota led the used car market with 328,431 sales and a 16.3 per cent share. That was around double Mazda and Ford in second and third.
In a close reflection of the new car market the Ford Ranger ute pipped the rival Toyota HiLux to be the top-selling model, with more than 60,000 of each changing hands.
I wonder whether there’s a breakdown by brand. As an EV owner this doesn’t look good, and bought a Tesla hoping they retain value the most.
There is still a strong perception that EVs don’t last long, and the battery is an expensive replacement after a few years.
It also doesn’t help that Tesla advertised the Model Y I have as having a WLTP range of 455km but it only charges to a maximum of 435km. The ev industry is its own worst enemy.