EV prices surge as used vehicle market shows mixed trends in Australia

Electric vehicles are driving strong momentum in Australia’s used vehicle market, with prices rising sharply even as broader conditions begin to soften, according to new data from Manheim Australia.

Manheim’s Q1 2026 Market Insights Report, part of Cox Automotive, shows growth in both vehicle sales and consignment volumes across its auction network, alongside increases in average wholesale prices.

However, more recent conditions point to a cooling market, with clearance rates and selling prices easing amid global uncertainty.

Electric vehicles have been a standout, with prices up around 20% in recent weeks as dealers compete for limited stock.

Chief executive Stephen Lester says EV demand has accelerated rapidly.

“Probably the biggest talking point in Q1, particularly from March onwards, was the rapid uptick in enquiry on electric vehicles,” Lester says.

“We are seeing EV sales running around 3x what they were in 2025, while over the past few weeks prices are up more than 20%.”

He says dealers are responding to growing customer demand in the second-hand EV segment.

“Encouragingly, dealers are placing more bids knowing that there is burgeoning customer demand for secondhand EVs.”

Across the wider used market, supply remains uneven. Strong volumes from OEMs and corporate fleets have helped offset lower availability of ex-lease and government vehicles, reflecting extended lease terms and reduced public sector procurement.

In the new vehicle market, sales softened across private, business and government channels during the quarter, although rental fleet sales recorded strong growth.

The report also highlights structural shifts in the market, with Chinese brands now accounting for close to a quarter of new vehicle sales.

“Chinese domestic brands accounted for nearly a quarter of the market, and down the track this will significantly impact the secondary market,” Lester says.

Despite near-term volatility, Lester says the outlook remains positive.

“As ever it is important to look beyond the monthly and quarterly cycles and keep a long-term view on things… I am bullish about what the mid-term holds for the business.”