Used electric vehicles (EVs) appear to defy concerns about battery longevity. A new survey suggests that even second-hand EVs with over 100,000 kilometres on the odometer often retain over 90% of their original battery capacity. This finding challenges the common belief that older EV batteries degrade rapidly over time, indicating they may last longer than expected.
A study conducted on over 250 pre-owned electric cars across major Australian cities revealed that many models continue to perform well even after years of use. The results showed that even four-year-old EVs still had about 93% of their initial battery life remaining on average. These figures suggest that fears of early battery failure in used EVs could be overstated.
Used EVs Attract Private Buyers at Auctions
Interest in second-hand electric cars is growing among private buyers. The vehicle auctions in Australia have seen an increase in demand, with more individual consumers choosing EVs over traditional fuel-powered cars. Many used EVs sold at auctions come from government and corporate fleets, making them an attractive option for buyers looking for well-maintained vehicles at lower prices.
Around 51% of used EVs sold at auctions in 2024 were purchased by private buyers. In contrast, only 24% of petrol or diesel vehicles went directly to individuals, with most being bought by dealerships. This shift suggests that buyers are becoming more confident in the reliability and value of second-hand electric cars.
The strong battery performance of used EVs has contributed to this growing interest. With more data available showing that EVs retain a high percentage of their original battery capacity, buyers are less concerned about potential battery replacements. As a result, more consumers are willing to consider EVs when purchasing a used car at auction.
Used EVs Show Strong Battery Health
Battery degradation has been a key concern for buyers of used EVs. However, recent studies indicate that these fears may not be justified. Most used EVs retain over 90% of their original battery capacity, even after being driven long distances.
Some models perform exceptionally well in battery retention tests. Hyundai EVs, for example, showed an average of 99.3% battery health, while BYD models followed closely at 98.6%. These numbers surpass the performance of some well-established brands, demonstrating that modern EV battery technology is designed for long-term use.
The study also found that even after four years, many EVs still had at least 93% of their original battery life. This suggests that buyers looking for a used EV can expect reliable battery performance for years to come.
Record Electric Car Sales in 2024
Electric vehicle adoption in Australia reached record levels in 2024. A total of 91,292 new EVs and plug-in hybrid electric vehicles (PHEVs) were sold, making up 7.4% of all new vehicle sales. This marked a significant increase from previous years, reflecting a shift in consumer preferences towards electric mobility.
Tesla continued to lead the market, with the Model Y selling 21,253 units and the Model 3 selling 17,094. Other brands also saw strong sales. The MG4 hatchback recorded 6,934 sales, while BYD’s Seal sedan reached 6,393 units.
With more EVs entering the market, the number of used electric cars available for resale is expected to increase. A higher supply of second-hand EVs may provide buyers with more affordable options in the coming years.
Used EV Prices Fall in 2024, But Outlook Improves
Despite positive trends in EV adoption and battery performance, the used electric vehicle market saw a decline in prices last year. The Australian Automotive Dealer Association (AADA) reported that second-hand EV prices dropped significantly in 2024.
Several factors contributed to this decline. Rapid advancements in battery technology led to older EV models depreciating faster. Some manufacturers introduced price cuts on new EVs, increasing competition. Additionally, Chinese automakers entered the market with lower-cost EV options, further driving down prices.
On average, a one-year-old used EV lost about 25% of its original value. In comparison, hybrid vehicles retained about 98% of their value over the same period. While this decline in value posed challenges for sellers, it provided an opportunity for buyers to purchase used EVs at more affordable prices.
Looking ahead, the second-hand EV market is expected to become more stable. The recent Fringe Benefits Tax (FBT) exemption for electric company cars is projected to increase the supply of used EVs, making them more accessible to buyers. As more second-hand electric cars enter the market, competition among sellers may lead to better pricing options.
Conclusion
Concerns about battery degradation have discouraged some buyers from considering used EVs. However, recent data suggests that these worries may be overstated. Studies show that second-hand EVs retain a high level of battery performance even after years of use. Combined with increasing supply and lower prices, used electric cars are becoming a more practical option for consumers.
