As the electric vehicle (EV) market matures in Australia, more buyers are considering long-term ownership costs—especially resale value. Whether you’re investing in a Tesla, BYD, MG4, or Nissan Leaf, understanding how EVs hold their value is critical for making a smart, sustainable purchase.
In this comprehensive guide, we explore what affects EV resale value in Australia, compare top models, and explain what buyers and sellers need to know in 2025 and beyond.
📍 Primary Keyword: resale value of EVs
📍 Secondary Keywords: EV depreciation, EV resale value Australia, electric car value retention
📍 Location Target: Australia
Table of Contents
- What Is Resale Value and Why It Matters for EV Buyers
- Factors Affecting the Resale Value of EVs in Australia
- EV vs ICE Vehicle Resale Value: A Comparative Look
- Top EVs with Strong Resale Value in Australia (2025)
- Tips for Maximising Your EV’s Resale Value
- FAQs
- Conclusion
- Meta Description
1. What Is Resale Value and Why It Matters for EV Buyers
Resale value refers to the estimated amount a vehicle will sell for after a certain period of ownership. For Australian EV buyers, resale value is becoming increasingly relevant as the market grows rapidly.
Why it matters:
- 🚗 Lower depreciation = lower total cost of ownership
- 🔋 Battery degradation can significantly impact resale
- 💸 Government incentives may affect resale timing
- 🌱 Sustainability-minded buyers prefer long-lasting value
As more Australians switch to electric vehicles, a clear understanding of their resale performance helps protect your financial and environmental investment.
2. Factors Affecting the Resale Value of EVs in Australia
Battery Health and Range
Battery condition is the most critical component in determining EV resale value.
- 🔋 A degraded battery reduces vehicle range and buyer interest.
- 🔧 Battery warranties (often 8 years or 160,000 km) can boost resale confidence.
- 📱 Tools like Tesla’s Battery Health Monitor or third-party OBD-II diagnostics help verify battery condition.
Australian buyers increasingly check for battery health certificates during private sales.
Government Incentives and Depreciation
EV incentives can affect resale indirectly.
- 🎁 In NSW and VIC, subsidies of up to $3,000 reduce new EV purchase costs.
- 📉 This can cause quicker initial depreciation, making near-new used EVs appear less attractive.
- 📊 However, once incentives level out and stock stabilises, resale values tend to recover.
Incentive programs may distort short-term value but even out in the long term.
EV Brand and Model Reputation
Brand loyalty and reliability perception play key roles.
- ✅ Tesla, Polestar, and BMW i-series EVs have stronger resale values due to perceived longevity and OTA (Over-the-Air) updates.
- ❌ Early-generation models (e.g. 2012 Nissan Leaf) suffer from outdated range and tech, leading to steep depreciation.
- 📈 Newer models with strong tech and safety features tend to retain value better.
Buyers are favouring EVs with trusted battery management systems and well-established charging infrastructure.
3. EV vs ICE Vehicle Resale Value: A Comparative Look
Let’s see how EVs stack up against internal combustion engine (ICE) vehicles in resale value across a 5-year period in Australia.
| Vehicle Type | Avg. 5-Year Depreciation (%) | Example Model |
|---|---|---|
| EV (Tesla Model 3) | 38–45% | Tesla Model 3 RWD |
| EV (MG ZS EV) | 48–55% | MG ZS EV Excite |
| ICE (Toyota Corolla) | 40–50% | Toyota Corolla Hatch |
| ICE (Ford Ranger) | 30–38% | Ford Ranger XLT |
📌 Insight: Premium EVs like Tesla tend to hold value better than lower-end EVs and even outperform some ICE vehicles.
4. Top EVs with Strong Resale Value in Australia (2025)
Based on current trends, these EVs are showing strong resale potential:
1. Tesla Model 3 & Model Y
- 📈 Consistently high resale due to OTA software updates and reliable performance.
- 🔋 Long battery life and strong charging network.
2. Hyundai Ioniq 5
- 🧠 Popular for its tech-forward design and excellent range.
- 🔧 Strong service and warranty coverage boost buyer confidence.
3. Polestar 2
- 🇸🇪 Scandinavian build quality meets high-end appeal.
- 🏆 Holds its value well due to its Volvo lineage and performance focus.
4. BYD Atto 3
- 💰 Affordable entry-level EV with decent range and growing recognition.
- 📉 Slightly higher depreciation than premium brands but better than expected.
5. Tips for Maximising Your EV’s Resale Value
Want to ensure a better return when it’s time to sell your EV? Here’s how:
✅ Keep Software Updated
→ Regular OTA updates can improve safety, range, and desirability.
✅ Maintain Battery Health
→ Avoid frequent DC fast charging and let the battery cool down before plugging in.
✅ Service Regularly
→ Follow your manufacturer’s EV maintenance schedule and retain service records.
✅ Sell at the Right Time
→ Avoid oversupply periods (e.g. after incentive changes or new model releases).
✅ Provide Range & Battery Reports
→ Third-party battery diagnostics increase buyer trust.
6. FAQs
Q1: Do EVs depreciate faster than petrol cars in Australia?
Initially, some EVs did. But now, top models like Tesla or Polestar often depreciate less than many ICE cars due to strong demand and tech updates.
Q2: What is the average lifespan of an EV battery?
EV batteries typically last 8–15 years depending on usage and climate. Most come with an 8-year warranty.
Q3: How do government incentives affect EV resale value?
Incentives can reduce upfront prices for new cars, lowering perceived value of near-new EVs in the short term. Long term, resale tends to stabilise.
Q4: Which EV brands have the best resale value in Australia?
Tesla, Hyundai, and Polestar consistently lead in resale value. BYD is improving as brand awareness grows.
Q5: Can I check battery health before buying a used EV?
Yes. You can use EV-specific diagnostic tools or request a battery report from the seller.
7. Conclusion
The resale value of EVs in Australia is influenced by several factors—battery health, brand reputation, incentives, and evolving tech. While early models faced steep depreciation, newer EVs, especially those from trusted brands, are holding their value impressively well.
💡 Whether you’re buying your first EV or planning to upgrade, understanding these dynamics helps you make informed, future-proof decisions.
👉 Are you considering buying or selling an EV in Australia? Share your experience or questions in the comments below!
8. Meta Description
Discover how EV resale value compares in Australia. Learn what affects electric vehicle depreciation, top models with best value, and buyer tips in 2025.