Australia’s used electric vehicle (EV) market in March experienced one of the most significant shifts seen in the segment to date, with a sharp surge in activity fed by fuel prices climbing following escalating tensions in the Middle East.

The Australian Automotive Dealer Association (AADA) and AutoGrab data showed that used EV sales more than doubled month-on-month, jumping from 3176 units in February to 7557 in March.At the same time, supply tightened dramatically. Available stock fell by 38 per cent leaving the market with just 28.6 days of supply – well below the 60-90-day range typically considered balanced – and signalling a clear shift toward a seller’s market.

The AADA noted that the surge had been led by value-oriented and Chinese-origin EV models, alongside strong dealer representation across the top-selling vehicles, reinforcing the role of competitively-priced offerings in driving adoption.

It said that while prices had softened through late 2025 “residual values have begun to stabilise and recover since January, suggesting the recent lift in demand is starting to flow through to pricing – although conditions remain uneven across different model years”.

“The sustainability of this surge will depend on how long fuel prices remain elevated, but the March data points to a clear shift in buyer behaviour toward lower running-cost vehicles,” the AADA said.

The broader used vehicle market also showed solid figures in March, with 327,762 vehicles listed for sale, marking a 1.9 per cent increase month-on-month. 

A total of 222,810 vehicles were sold, representing a 4.2 per cent rise compared to February, signalling continued resilience in consumer demand.

The AADA said dealer activity remained a key component of the market, accounting for 45.22 per cent of all sales “reinforcing the important role dealers play in connecting buyers with vehicles”.

Market efficiency improved slightly over the month, with the average days to sell falling to 45.6 days, down from 46.6 in February, indicating a modest acceleration in transaction times.

AADA CEO James Voortman said: “Rising fuel prices are clearly influencing consumer behaviour, with more Australians turning to used EVs as a practical and cost-effective alternative”.

“At the same time, the broader used vehicle market remains resilient, with steady sales growth and improving turnaround times indicating healthy underlying demand. 

“Dealers have consistently demonstrated their ability to adapt to changing market conditions, and the growing presence of EVs being offered by dealers in the used market is another example of that evolution in action.”

AutoGrab’s chief commercial officer, Saxon Odgers, said that the Australian automotive market “can change almost overnight”.

James Voortman

“As we’ve seen recently, macro events – whether an interest rate decision, a tariff announcement, an oil crisis, or a shift in consumer confidence – can ripple through the used car and demonstrator market within weeks, reshaping which segments are moving, which are stalling, and where the value sits,” Mr Odgers said.

“What we saw in March wasn’t a gradual shift. Used EV sales more than doubled in the space of a month while available stock fell by 38 per cent, compressing days of supply to under 29 days.

“For dealers who are well-positioned with the right stock, the opportunity is significant.

Saxon Odgers

“Residual values on used EVs have been stabilising since January, and the March demand surge is now adding upward pressure. 

“Whether this marks a lasting inflection point will depend on how long fuel prices stay elevated, but the data is clear: cost of ownership is now front of mind for buyers, and that’s reshaping how they think about their next vehicle.”