If you had walked into a car dealership three years ago looking for a used electric vehicle, you would have likely been met with a blank stare or a very short list of incredibly expensive options. Back then, the used EV market in Australia was practically non-existent—a handful of early-adopter Teslas and the occasional Nissan Leaf.

Fast forward to January 2026, and the landscape has undergone a seismic shift.

At EV Evolution, we’ve been watching the data closely, and the trend is clear: The used EV “Gold Mine” has officially opened. This summer, we are seeing a record-breaking influx of high-quality, 2-to-3-year-old electric vehicles hitting the second-hand market. If your New Year’s resolution was to go electric without the “new car” price tag, your timing is perfect.

Here is why January is the best month in history to score a used EV bargain in Australia.

1. The “Lease Hand-Back” Wave

To understand why the market is currently flooded with stock, we have to look back at late 2022 and early 2023. That was the period when the Federal Government first introduced the Electric Car Discount (FBT Exemption).

Thousands of savvy Australian professionals jumped into three-year novated leases to take advantage of the tax breaks. Now, as we enter 2026, those three-year cycles are ending. We are seeing a “tsunami” of well-maintained, fleet-managed vehicles being returned to leasing companies and hitting dealer forecourts.

The Result?

Supply is finally outpacing demand in the used sector. According to recent Automotive Insights Reports, sales of used EVs nearly doubled year-on-year leading into 2026. For the buyer, this means power: more choice, better negotiating leverage, and lower prices.

2. The Tesla “Value Gap”: Model 3s for $35k?

Tesla remains the undisputed king of the second-hand market, but the “Tesla Tax” has officially evaporated. In 2023, a used Model 3 held its value with iron-clad grip. By January 2026, depreciation has done its work, turning these tech-heavy machines into genuine bargains.

• The Model 3 Sweet Spot: We are currently seeing 2021 and 2022 Model 3 Standard Range Plus units listing for between $32,000 and $38,000. Considering these cars originally cost north of $60,000, that is a staggering amount of car for the money.
• The Model Y Factor: The best-selling Model Y is also starting to appear in significant numbers. Early 2023 models—the first ones to hit Australian shores—are now frequently found in the high $40k to low $50k range.

At these prices, a 3-year-old Tesla is now cheaper than a brand-new top-spec Toyota Corolla or Hyundai i30. You get more tech, more performance, and you never have to visit a petrol station again.

3. Beyond the “Big T”: The Rise of BYD and MG

While Tesla leads the volume, the “Value Kings” of 2026 are the early BYD Atto 3 and MG ZS EV models.

The first wave of BYD Atto 3s (delivered in late 2022) are now hitting the second-hand market in droves. We are seeing these listed for as low as $28,000 to $33,000. For a family SUV with a high-quality interior and a battery known for its longevity (the famous “Blade Battery”), this is arguably the best “bang for buck” in the entire Australian automotive market right now.

The MG Opportunity: The MG ZS EV, often cited as the car that made EVs affordable in Australia, is now available for under $25,000 in the used market. For a city-dwelling family looking for a second car, the math is simple: the fuel savings alone could pay for a significant chunk of the car’s monthly running costs.

4. The “Used Lease” Secret: Double the Savings

Here is the EV Evolution “Pro Tip” for 2026: You don’t have to buy new to get the tax breaks.

Under the current rules, used electric vehicles are still eligible for the FBT Exemption through a novated lease, provided they were first registered after July 1, 2022, and were under the Luxury Car Tax (LCT) threshold when new.

Why this is a January Masterstroke:

If you lease a used Tesla Model 3 for $35,000 instead of a new one for $54,900, your monthly payments are tiny. Because you are paying with pre-tax salary and avoiding FBT, you could effectively be driving a premium electric car for less than the cost of a daily coffee and a sandwich.

5. What to Check: Buying Used with Confidence

We know the biggest fear with used EVs: “What about the battery?” In 2026, we have the data to put those fears to rest. Real-world testing on the 410,000+ EVs now on Australian roads shows that modern lithium-ion and LFP batteries are far more durable than early skeptics predicted. Most 3-year-old EVs still retain 95% to 98% of their original capacity.

Your Used EV Checklist:

1. State of Health (SoH): Ask the seller for a battery health report. Most EVs can generate this through the infotainment system or a third-party OBDII dongle.
2. Warranty Balance: Remember, most EVs come with an 8-year battery warranty. A 2023 model still has 5 years of factory protection left on its most expensive component.
3. Tire Wear: EVs are heavy and have instant torque. Check the tread depth; if they need replacing, use it as a bargaining chip (expect to pay $1,200+ for a good set of EV-specific tires).
4. Charging Hardware: Ensure the car comes with its mobile charging cable (the one that plugs into a standard wall socket). These are often “forgotten” in the garage by previous owners.

Conclusion: The Smart Money is in the Second-Hand Lane

As we kick off 2026, the era of the “unaffordable EV” is officially over. The combination of a massive supply of lease hand-backs, steep depreciation on early models, and the ongoing FBT tax benefits has created a “perfect storm” for buyers.

At EV Evolution, we believe the smartest way into the electric revolution this year isn’t necessarily the shiny new model in the showroom—it’s the perfectly maintained 2-year-old gem sitting on the used lot.

🤖 Find Your Used EV Bargain

Are you looking at a specific used Tesla and wondering if the price is right? Or maybe you’re confused about whether a 2022 model still qualifies for the FBT exemption?

Start a conversation with the EV Evolution AI chatbot! Our AI is loaded with the latest 2026 used car valuation data, battery longevity stats, and leasing rules.

Ask our AI chatbot anything about used Tesla Australia or the second-hand market, such as:

• “What is a fair price for a 2022 Tesla Model 3 with 50,000km in January 2026?”
• “Which used EVs under $30,000 have the best battery reliability?”
• “Can I get an FBT-exempt novated lease on a 2023 BYD Atto 3?”
• “What should I look for when inspecting a used MG4?”

Click the chat icon to get an instant “second opinion” on your used EV find. Let’s get you on the road for less.

About EV Evolution

EV Evolution is the leading online platform dedicated to Australian electric vehicle owners and enthusiasts. We foster a vibrant community, delivering essential EV news and insights, and enhancing user engagement through our innovative, AI-powered chatbot for dynamic discussions. Our mission is to empower Australian electric vehicle owners and enthusiasts by fostering a vibrant, AI-driven online community that connects, informs, and advances the nation’s electric vehicle landscape.