Electric vehicle resale values are under intense scrutiny—but according to Philip Browne, Managing Director of Autorola Australia, the concerns aren’t new. The same forces that shape the second-hand market for internal combustion engine (ICE) vehicles apply just as strongly to electric vehicles. The only difference? Time and data.
“Resale value is always a balancing act,” said Browne. “For ICE vehicles, we know the key indicators—kilometres, service history, general condition, and what the new car costs today. For EVs, it’s exactly the same—except we’re still catching up on data.”
Battery condition adds a new dimension to the EV resale conversation, but Browne argues that it simply replaces the unknowns associated with ICE engines. “Driver behaviour of an ICE vehicle can be invisible unless it’s written all over the exterior,” he said. “You’re relying on service books and oil checks to guess what’s happening inside. With an EV, battery testing gives you a much clearer picture.”
Autorola has started offering State of Health (SOH) testing for EV batteries to help address this. By partnering with Aviloo, a European leader in battery diagnostics, they are now delivering real-time assessments of battery condition for fleets and dealers looking to buy or sell used EVs.
“We’ve found that most batteries are holding up better than expected,” said Browne. “The only real outliers are 10-year-old EVs with early battery tech. Today’s batteries are far more robust, and we’ve had very few tests come back showing poor results.”
Why Resale Values Are Falling—And It’s Not Just EVs
Resale values are not simply about how long a vehicle lasts. They’re influenced by perception, pricing, and behaviour across the entire market. For ICE and EV alike, the resale equation includes:
- Discounting on new models: “This has hurt EVs,” said Browne. “Massive discounts over the last few years on new EVs mean used ones have been devalued before they even leave the lot.”
- Brand reputation: Strong brands can support resale value—but it’s not guaranteed. “Even Toyota struggled early on with hybrids,” he noted.
- Market education: “When something is new or misunderstood, people stay away. That’s exactly what happened with hybrid vehicles.”
Browne draws a direct parallel to the Toyota Prius and Camry Hybrid. “The Prius had shockingly low resale when it first launched,” he recalled. “People didn’t understand the technology. Even Toyota’s reputation couldn’t help. It wasn’t until the taxi industry proved their reliability that the market started to catch on.”
Battery Testing Helps Bridge the Gap
Battery SOH testing is a major step toward closing that knowledge gap for EVs. “With ICE, you’d need a mechanic to do a compression test, oil sampling, cooling system checks—hours of work to get a sense of the engine’s health,” Browne said. “With an EV, we can plug in a battery tester and get an accurate report in a matter of minutes.”
These reports go beyond just a health percentage. They include temperature readings, voltage consistency, charging behaviour, and even confirm which battery size is installed—vital for vehicles offered in multiple range variants.
Crucially, the benchmarking data comes from a global database, not just Australian vehicles. “That means you’re seeing how a car compares against thousands of similar models, including data from Europe where used EV adoption is more advanced,” Browne said.
The Path to Normal Resale Values
According to Browne, the key to improving resale values lies in changing perceptions and giving the market time to mature.
“Right now, used EVs are selling for around 50 to 60% of their new price,” he explained. “Compare that to a three-year-old Corolla, which sells for 78 to 80% of its new price. That’s a huge gap—but it’s artificial. It’s driven by fear and lack of information.”
He’s confident this will change. “Just like hybrids, EVs will find their place. Taxi fleets and rideshare drivers are already adopting them. Once they become common in the second-hand market—and buyers can access real, independent battery reports—we’ll see a shift.”
There’s already early evidence of this. “We had a BYD come through recently with 46,000 km, and the battery tested above average. That kind of result, backed by data, will change minds.”
Why It Matters for Fleets
For Fleet Managers, resale values play a crucial role in whole-of-life cost calculations. An EV with poor resale will cost more over its lifecycle than a hybrid or ICE alternative, even with lower running costs.
“The whole-of-life cost is a big issue,” said Browne. “And the reality is, if resale doesn’t hold, fleets will hesitate. But what we’re seeing through testing is that these vehicles are in better shape than we thought. In some cases, fleets are running them longer to get more value—because the batteries can handle it.”
That flexibility can be a strategic advantage. “If the car still performs well at four years, run it for five or six. Battery testing lets you make that decision with confidence.”
A Future That Mirrors the Past
The story of EV resale values isn’t one of doom—it’s a repeat of history. Browne believes that with more data, better testing, and continued fleet uptake, the used EV market will stabilise.
“It’s just like when the Camry Hybrid launched in 2010. People were wary, the resale was poor, and it took years before the market accepted it. But once people saw them doing 300,000 km in taxi fleets, the narrative changed. That’s where we are with EVs today.”
His advice to the market is simple: “Don’t panic. Learn from the past. Get the facts. And test the battery.”
