The used electric vehicle market has shifted quickly in 2026, creating an unexpected challenge for dealers and fleet sellers — supply is now struggling to keep up with demand.
For Fleet Managers and Leasing Companies, this change is significant. After several years of uncertainty around resale values and buyer appetite, the secondary EV market is showing strong momentum, with vehicles moving quickly and competition increasing at auction.
According to Mike Costello, Corporate Affairs Manager at Cox Automotive Australia, the biggest constraint in today’s market is no longer demand — it is access to stock.
Costello said the shift has been noticeable across dealer networks and auction lanes, where buyers are actively competing for available vehicles.
“What’s interesting with the used EV market at the moment is just sourcing vehicles. Previously, we saw a lack of interest in stocking these vehicles from dealers compared to other vehicle types. But now there’s so much demand — there are a lot more hands raised to get them.”
This reversal in sentiment marks an important milestone for the EV market. Dealers who were once cautious about stocking used electric vehicles are now actively seeking them out, reflecting growing confidence in battery durability, operating costs, and long-term ownership value.
Demand Is Outpacing Supply
The change in market dynamics has been driven by a surge in buyer activity, particularly among dealers looking to secure stock for retail customers.
Costello said the strength of demand is evident in auction performance, where vehicles are selling quickly and attracting strong bidding interest.
“Every EV that we get through the lanes at the moment is selling. Clearance rates are basically 100%, and nearly all of them are selling under the hammer rather than via negotiation after the auction.”
In practical terms, this means fleets disposing of vehicles today are entering a highly competitive marketplace. More bidders typically translate into stronger sale outcomes, particularly when inventory levels are limited.
Recent market activity supports this trend, with a sharp increase in bidder participation and sale prices.
“We saw prices increase by as much as 30% on some models, and a huge uptick in bidder activity — two or three times as many bidders.”
For fleet operators managing replacement cycles, this environment creates an opportunity to optimise disposal timing and capture stronger residual values.
A Turning Point for Fleet Disposal Strategies
The emerging supply shortage is also reshaping how fleets think about asset disposal and lifecycle planning.
In the past, some organisations delayed selling early EV purchases due to uncertainty around resale performance. That caution is now being replaced by renewed confidence as market demand strengthens.
Costello said the current conditions present a favourable window for fleets considering disposal.
“It’s certainly a pretty good time to sell them. There’s definitely been a phase shift in terms of perceptions around EVs, and demand is at an absolute high.”
While market conditions will continue to evolve, the underlying trend appears to be structural rather than temporary. Buyers are increasingly recognising the lower running costs of electric vehicles, and that awareness is supporting sustained demand in the used market.
What This Means for Fleet Managers
For Fleet Managers and Leasing Companies, the message is clear: the used EV market is no longer defined by uncertainty — it is defined by competition.
Limited supply, rising bidder activity, and improving confidence in EV technology are creating a more predictable resale environment. That stability supports stronger residual value forecasting and more confident procurement decisions.
The next challenge for the industry may not be convincing buyers to adopt electric vehicles — it may be ensuring there are enough vehicles available to meet demand.
