For decades, the secondhand car market has operated under a near-absolute law of depreciation: the longer a vehicle sits on the lot, the lower its price tag must go to attract a buyer. But a volatile fuel crisis has effectively inverted this logic, leading to a rare phenomenon where used EV prices rise as Australia’s fuel crisis hits.
As petrol and diesel prices surged across the country in March, the traditional trajectory of vehicle valuation shifted. While combustion engine cars are seeing steep discounts to move stock, electric vehicles (EVs) are becoming high-demand assets, with dealers confidently raising asking prices for pre-owned models.
Jake Sale, founder of the Perth-based vehicle analysis firm MotorMetrics, notes that while price drops are the industry standard, seeing values climb is highly unusual. “It’s specifically EVs that buyers are looking for,” Sale said, describing the upward trend as “exceptionally unique.”
A Reversal of the Secondhand Market
The shift is most evident in the pricing of popular electric models. According to live inventory analysis from MotorMetrics, secondhand dealers have aggressively repriced several EV models. The Tesla Model Y, for instance, saw an increase of more than 6% in the final two weeks of March. Other models experiencing price hikes include the Tesla Model 3, the MG4, and the Polestar 2.
This pricing power suggests a tightening supply of used electric cars. While dealers are raising prices, the stock of available used EVs is running low. Conversely, the market for internal combustion engine (ICE) vehicles is softening rapidly. Some used diesel and petrol vehicles have seen sticker prices slashed by as much as 20% as buyers pivot away from the pump.
This sudden enthusiasm has caught even the most optimistic EV advocates by surprise. Car yards and brokers report a sharp spike in demand that aligned almost perfectly with the rising cost of fuel.
Financial Indicators and the Rational Economic Pivot
The trend extends beyond ownership and into the financing and rental sectors. Data from the Commonwealth Bank indicates a massive surge in borrowing for electric transport, with weekly loan volumes for new battery electric vehicles jumping 161% in March compared to February.
Rental markets are seeing a similar upheaval. Rob Chan, managing director of the rental marketplace Turo Australia, reports that bookings for hybrids and EVs have increased 70% over the same period last year. Chan compares the magnitude of this shift to the “revenge travel” boom that followed the reopening of pandemic borders.
“People are seizing control by booking cars that make a lot of rational economic sense,” Chan said. “This will be a long-term trend.”
Overcoming the Infrastructure Hurdle
Despite the economic incentive, the transition has not been seamless. For many Australians, “range anxiety” and fragmented charging networks remain significant barriers. Sydney motorist Har Rai Singh, who used Turo to test EVs before committing to a purchase, noted “slight niggles” during his road trips, including malfunctioning charging points and the necessity of managing multiple different apps to power his vehicle.
Though, Singh argues that the frustration of charging is now outweighed by the cost of fuel. “While people talk about waiting for chargers, now we’ve got people waiting for petrol pumps, and waiting to pay more than $100 to fill up a tank,” Singh said. “It doesn’t make sense to me any more to hold on to a combustion engine.”
Australia has historically lagged behind nations like Canada and New Zealand in EV adoption, often attributed to political divisions in Canberra. However, the momentum is shifting. According to the Electric Vehicle Council, there were more than 454,000 battery electric and plug-in hybrid electric vehicles (PHEVs) on Australian roads by the end of 2025.
Current State of Australian EV Adoption
| Metric | Value/Status |
|---|---|
| Total EVs & PHEVs (End of 2025) | >454,000 vehicles |
| New Purchase Market Share | ~13% |
| CBA Weekly Loan Volume Increase (March) | 161% |
| Turo EV Rental Increase (Year-on-Year) | 70% |
The End of the Combustion Era?
Economists suggest that while oil shocks are not new, this specific crisis may act as a permanent catalyst for change. Peter Esho, head of Sydney-based Esho Capital, believes this could be one of the final oil shocks to truly sway the public.
“EVs are now a credible option for many passenger vehicles and this shock is likely to exponentially accelerate adoption, once the dust settles,” Esho said.
The volatility of March saw petrol prices increase almost daily across capital cities, according to Informed Sources data, though a government fuel excise cut eventually triggered a temporary price drop. Despite this relief, the psychological shift among consumers appears to have already occurred.
Disclaimer: This article contains information regarding market trends and financial data for informational purposes only and does not constitute financial or investment advice.
The market now looks toward the continued rollout of national charging infrastructure and the introduction of more affordable electric models to sustain this growth. The next major indicator of stability will be the quarterly registration data, which will reveal if the March surge in loans and rentals translates into a permanent shift in fleet ownership.
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