Australia’s used vehicle market is entering a new phase, with buyers becoming more cautious and placing greater emphasis on value, running costs and long-term ownership, according to the latest Pickles Quarterly Automotive Report.
Pickles says the second quarter of 2026 was one of the more challenging periods for the used vehicle market in recent years, as geopolitical uncertainty, fuel price volatility and softer consumer confidence contributed to an earlier and more pronounced winter slowdown.
However, Pickles believes the underlying market remains fundamentally sound and expects conditions to improve as more traditional seasonal buying patterns return.
Chris Shaw, General Manager – Automotive at Pickles, said the current conditions should be viewed in the context of broader economic and seasonal factors rather than as a fundamental change in the market.
“After several years of strong trading conditions, we’re seeing buyers and sellers respond to market conditions in a much more measured way. That’s consistent with what we’d expect during a traditional seasonal slowdown,” Shaw said.
“While conditions are more challenging than they were during the supply-constrained years, they’re also becoming more predictable, allowing buyers and sellers to make better-informed decisions.”
For fleet operators, leasing companies and organisations planning vehicle replacement cycles, the changing buyer behaviour will be important because resale values remain a significant component of Whole of Life Cost calculations.
Pickles reported that improving new vehicle availability is providing buyers with greater choice, while purchasers are increasingly considering ongoing operating costs and the total ownership proposition rather than simply purchase price.
Used EV market entering a new stage
One of the most significant changes identified by Pickles is the development of Australia’s secondary electric vehicle market.
According to the report, EVs represented more than 20 per cent of monthly new vehicle sales throughout the second quarter before reaching a record 24 per cent market share in June and outselling diesel vehicles for the first time. Private EV sales also increased by more than 11 per cent during June, contributing to almost 50,000 EV and plug-in hybrid deliveries during the month.
The next development will be an increasing supply of used EVs.
The first significant wave of vehicles acquired through the Federal Government’s Fringe Benefits Tax exemption for eligible electric vehicles under novated leasing arrangements is beginning to approach the end of its lease cycle.
Pickles expects this to result in greater volumes of used electric vehicles entering the secondary market over the coming years.
That development will be closely watched by fleet managers, leasing companies and vehicle manufacturers because greater used EV volumes should provide more evidence around residual values, buyer demand and depreciation.
A deeper and more established second-hand EV market may also improve confidence among organisations considering electric vehicles by providing greater visibility over future disposal values.
“As confidence returns and supply gradually improves, we expect more traditional seasonal trading patterns to re-emerge over the remainder of the year,” Shaw said.
“Markets always evolve. The organisations that understand where buyer demand is moving and how supply is changing will be best placed to make informed decisions.”
