EVs smash car sales records
Once seen as little more than luxury toys, electric vehicles are now smashing the sales of petrol cars in the world’s biggest driving market and Australia could be next.
America’s second-hand electric car market is exploding, and Australia might not be far behind.
Used EV sales in the U.S. have jumped 34 per cent in the first half of 2025 compared with the same time last year, according to Cox Automotive.
What was once seen as a risky gamble is now the hottest part of the car market, with used electrics selling quicker than petrol, and often for the same money.
In August, the average pre-owned EV went for US$34,700 (about AUD$53,000), basically the same as a second-hand petrol car.
According to Cox, the supply of used EVs in America is gone in 36 days, compared with 42 days for petrol cars.
So what’s driving the change? Big discounts.
A year ago, the Ford Mustang Mach-E GT had a new price of US$55,000 (A$84,000).
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Last month, a used 2024 model sold for just US$33,000 (AUD$50,500), a 22 per cent cut after only 21,000km on the clock.
Analysts say this surge comes from a wave of EV leases taken out in 2022 now flooding the used market, the year big-name models like the BMW i4, Cadillac Lyriq, Ford F-150 Lightning and Toyota bZ4X hit the scene.
EVs also depreciate more than their petrol-powered counterparts, partly due to the rapid pace of technological advancements.
However, analysts say that’s what’s making them affordable.
EV data firm Recurrent director of market insights Liz Najman said confidence in used electrics is finally changing.
“It was just a matter of time until people sort of started trusting used EVs enough to take the plunge, and that would sort of have a ripple effect,” she said.
“These are modern cars that have, you know, all the bells and whistles you would want.”
The price drops are getting sharp enough to undercut petrol.
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A two-year-old Toyota RAV4 is fetching around US$31,100 (AUD$47,600), while an electric Toyota bZ4X the same age is about US$6,600 (AUD$10,100) cheaper, according to CarEdge.com.
CarEdge analyst Justin Fischer said the shift is breaking stereotypes, even in America’s heartland.
“It’s been shocking to see how open people are to EVs in rural America,” he said. “And the main concerns I hear never have to do with politics. It’s access to charging and what happens if the battery dies.”
The concern about battery life is also fading.
EVs are proving more durable than anticipated, with their batteries performing better than expected and no need for radiators, spark plugs, or oil.
Additionally, most in the US and Australia are backed by eight-year or 160,000km warranties.
Najman said that as more drivers see EVs lasting years without drama, depreciation will level out.
Recurrent believes another 240,000 used EVs will hit the U.S. market next year as leases expire, which means the boom is only just beginning.
Despite lingering concerns about EVs in Australia, used electric vehicles (EVs) are emerging as the most realistic entry point into the market.
As Najman said: “The relatively low prices have normalised EVs for people who maybe didn’t even realise they were an option, or thought they were just toys for rich people.”
