EV depreciation in Australia has been one of the most talked-about topics in motoring for the past two years, and much of the noise has been misleading. The narrative that electric cars "lose half their value overnight" was driven almost entirely by Tesla's aggressive 2023–2024 price cuts, which dragged used Model 3 and Model Y values down sharply. Two years on, the picture is very different. Values have stabilised, demand for used EVs in the novated lease market is strong, and some models are now holding their value better than equivalent petrol cars. Here's how electric car resale values are actually tracking in 2026, and what it means if you're buying or selling.
The Myth vs Reality of EV Depreciation in Australia
The depreciation panic started in early 2023 when Tesla cut new Model 3 and Model Y prices by $6,000–$10,000 in a single stroke. Owners who had paid full retail just months earlier suddenly found their cars worth thousands less on the used market — not because EVs were failing, but because the new-car benchmark had moved. A used Model 3 can only be worth a sensible discount off whatever a new one costs today.
Since mid-2024, new EV pricing has steadied. BYD, MG, Kia, and Hyundai have settled into predictable price bands, Tesla has held prices roughly flat for 18 months, and the secondhand market has had time to recalibrate. The result: retained value percentages on 2023–2024 EVs are now tracking similarly to, and in some cases better than, equivalent petrol cars from the same era.
3-Year and 5-Year Retained Value by Model
The table below shows typical retained value (percentage of original drive-away price) for popular EVs sold in Australia, based on current 2026 used listings and recent auction data. These figures assume average kilometres (around 15,000 km/year) and good condition.
| Model | Original Price (Drive-Away) | 3-Year Retained | 5-Year Retained |
|---|---|---|---|
| Tesla Model 3 RWD | $62,000 | 62% | 48% |
| Tesla Model Y RWD | $69,000 | 64% | 50% |
| BYD Atto 3 Extended | $52,000 | 58% | 44% |
| Polestar 2 Long Range | $72,000 | 55% | 42% |
| MG ZS EV Essence | $44,000 | 54% | 40% |
| Kia EV6 Air RWD | $73,000 | 65% | 51% |
| Hyundai Ioniq 5 Dynamiq | $75,000 | 63% | 49% |
For context, a Toyota RAV4 Hybrid retains roughly 70% at 3 years and 55% at 5 years — still the benchmark — while a Mazda CX-5 petrol sits at around 62% and 47%. The Kia EV6 and Model Y are now within a few points of the RAV4, which would have been unthinkable two years ago.
What's Pushing EV Resale Values Down
Several forces still work against EV retained value, particularly on older or niche models:
- Battery anxiety from buyers: Second-hand buyers worry about battery replacement cost even though real-world degradation data is reassuring. This fear alone clips 5–10% off used values compared to equivalent petrol cars.
- Ongoing new-car price adjustments: Any fresh round of Tesla or BYD price cuts instantly resets used values. Owners of 1–2 year old cars are most exposed.
- Tech obsolescence: EV platforms evolve quickly. A 2021 model with slower DC charging (50 kW max), older infotainment, or less efficient motors looks dated next to a 2025 replacement with 150 kW charging and heat pump.
- Limited used-market finance: Some lenders are cautious about financing used EVs over 5 years old, which reduces the buyer pool.
What's Pushing EV Resale Values Up
The forces supporting EV resale are actually stronger than most owners realise:
- Running-cost desirability: With petrol averaging $1.95–$2.15/L nationally and home charging at 8–15 c/kWh off-peak or on solar, a used EV offers $2,500–$4,000/year in fuel savings. That economic pull keeps demand firm.
- FBT exemption on novated leases: The Electric Car Discount (FBT exemption for EVs under the luxury car tax threshold, around $91,000 for 2025–26) has created enormous demand from salary-packaging buyers. This has lifted used demand for Model 3, Model Y, Atto 3, and Polestar 2 in particular.
- Long battery warranties transferring with the car: Most EVs come with 8 year / 160,000 km battery warranties that transfer to subsequent owners, giving used buyers more confidence than with a petrol engine of the same age.
- Lower servicing costs: No oil changes, fewer moving parts, and brakes that last 2–3 times longer thanks to regen. Buyers factor this into what they'll pay.
EV vs Petrol: Same-Segment Comparison
The most honest way to look at EV depreciation is side-by-side with a petrol equivalent bought in the same year. Here are three real-world comparisons from current used listings:
| Comparison | New Price (2023) | Used Price (2026) | % Retained |
|---|---|---|---|
| Tesla Model Y RWD | $69,000 | $44,000 | 64% |
| Toyota RAV4 GXL Hybrid | $52,000 | $36,500 | 70% |
| BYD Atto 3 Extended | $52,000 | $30,000 | 58% |
| Mazda CX-30 G25 Astina | $48,000 | $30,000 | 63% |
| Polestar 2 Long Range | $72,000 | $39,500 | 55% |
| BMW 3 Series 320i | $78,000 | $46,000 | 59% |
Once you net out the $3,000/year in fuel and servicing savings the EV has delivered over that period (roughly $9,000 over three years), the true ownership cost gap narrows to almost nothing — and often favours the EV.
How to Protect Your EV's Resale Value
Whether you're driving a Tesla, Kia EV5, or Hyundai Kona Electric, the same principles apply:
- Minimise DC fast-charging as a routine: Using Chargefox, Evie, Ampol, or Tesla Supercharger networks is fine for trips, but daily 150 kW+ charging does accelerate battery ageing. Home AC charging should be your default.
- Keep state of charge between 20% and 80% for daily use: Most manufacturers (Tesla, BYD, Polestar, Hyundai) recommend this for LFP batteries charged to 100% weekly and NMC kept mostly in that window.
- Keep complete service records: Even though EVs need less servicing, a full stamped logbook materially affects resale. Buyers are cautious and documentation calms them.
- Preserve the original warranty paperwork and battery health reports: A screenshot of current state of health from your car's menu (or a third-party report) is gold at sale time.
- Sell privately rather than trading in: Dealer trade-in offers on EVs still lag private sale values by $3,000–$6,000 in most cases, more than petrol cars.
- Time your sale around model cycles: Selling just before a major facelift or new model launch (a new Model Y refresh, a new Ioniq 5 update) protects value.
Where EV Depreciation Is Headed From Here
Three trends will shape 2026–2028 resale values. First, new EV prices have largely bottomed; further cuts will be modest rather than dramatic, so used values should track in a narrow band. Second, the FBT exemption continues to prop up demand at the $40,000–$75,000 used price point. Third, battery longevity data is finally long enough that even conservative buyers are accepting that 8–10 year old EVs will still have serviceable batteries — which lifts retention in years 5–8 of ownership.
The brands likely to hold value best over the next three years are Tesla (on sheer demand and Supercharger access), Kia and Hyundai (on build quality and 800-volt platforms), and Toyota's forthcoming BEVs once available. Chinese brands without established service networks still carry a small resale penalty, though BYD is closing that gap fast.
Work Out Whether an EV Still Makes Sense for You
Depreciation is only half the total cost of ownership picture — the other half is what you save on fuel, servicing, and stamp duty compared to petrol. Use our EV vs Petrol Calculator to model your own kilometres, electricity tariff, and fuel prices side by side. It will show you how quickly the running-cost savings close the depreciation gap against a comparable petrol car, so you can make a buying decision based on numbers rather than headlines.