Saturday 17 October 2026
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Australia

EV boom sends used petrol and diesel car prices tumbling as listings hit record high

Australians flocking to electric vehicles flood second-hand market with internal combustion cars, forcing sellers to slash asking prices

By LineZotpaper
Published
Read Time1 min
Sources3 outlets
A surge in electric vehicle uptake driven by cheaper new models and rising fuel costs has triggered a flood of used petrol and diesel cars onto the Australian second-hand market, pushing listings to a record high and forcing sellers to cut prices to offload their old automobiles.

Australians' embrace of electric vehicles has dramatically reshaped the used car market. An EV was sold every 100 seconds in the first six months of this year, and that wave of new EV owners has left a glut of trade-in petrol and diesel vehicles on the market.

According to data from AutoGrab, which tracks dealership and private listings, used car listings peaked at 437,855 in July. Of those, approximately 98 per cent are petrol, diesel or hybrid vehicles -- types that many motorists are now abandoning.

James Voortman described the situation succinctly: "The Australian automotive market is undergoing the most significant transformation in its history." Sellers are increasingly being forced to lower their asking prices to move stock as supply far exceeds demand for internal combustion engine cars.

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Analysis

Why This Matters

  • Motorists looking to sell or trade in a petrol or diesel car are facing sharply lower resale values as supply swells.
  • The rapid shift underscores the accelerating pace of EV adoption in Australia, which is reshaping consumer behaviour and the automotive industry.
  • Falling used car prices could also make second-hand petrol vehicles more affordable for budget-conscious buyers, potentially slowing the transition for some segments.

Background

Australia is in the midst of a rapid shift toward electric vehicles, spurred by the arrival of cheaper new EV models and sustained high fuel costs. The sales pace has outpaced expectations, and the boom has now reached the used car market, creating a surplus of conventional vehicles as owners trade up to electric drivetrains.

Key Perspectives

Sellers of used petrol/diesel cars: Facing a market flooded with similar vehicles, they must lower asking prices or wait longer to sell, potentially losing thousands of dollars compared to past market conditions. Buyers of used cars: Petrol and diesel bargains are now widely available, offering significant savings for those willing to stick with internal combustion, though fuel costs remain high. Automotive industry and dealers: The shift is forcing dealerships to adapt their inventory mix and pricing strategies, while the broader industry grapples with the pace of electrification.

What to Watch

  • Whether used petrol/diesel prices continue to decline as EV sales maintain momentum.
  • The impact on new car sales of internal combustion models as residual values fall.
  • Any policy response from governments, such as incentives to scrap older vehicles or support for used EV imports.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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