After several years of uncertainty in the used electric vehicle market, conditions have shifted quickly in 2026. Strong demand, rising bidder activity, and improved buyer confidence are creating a favourable environment for fleets considering disposal of older EV assets.
For Fleet Managers and Leasing Companies, the timing of vehicle disposal has always been a critical factor in achieving strong whole-of-life cost outcomes. The current market signals suggest that fleets holding early EV purchases — particularly those acquired before or during the pandemic — may now be in a stronger position to realise value.
According to Mike Costello, Corporate Affairs Manager at Cox Automotive Australia, the shift in demand has been noticeable across the used vehicle market, with buyer confidence improving rapidly.
“It’s certainly a pretty good time to sell them. There’s definitely been a phase shift in terms of the perceptions around EVs, but right now, given the acute cost-of-living pinch that’s being felt, demand is at an absolute high.”
Demand Is Driving Stronger Sale Outcomes
One of the clearest indicators of changing market conditions is the level of competition among buyers. Increased bidder participation is pushing vehicles to sell quickly and, in many cases, at higher prices than expected.
This shift reflects growing acceptance of EV technology, particularly the realisation that operating costs can be significantly lower than traditional internal combustion vehicles.
Costello said the strength of demand is evident in the way vehicles are selling through competitive auction channels.
“What we do have is a really, really big database of buyers, and the competitive auction process often yields really strong results, because what we’re seeing is a significant uptick in the number of bidders.”
For fleets managing disposal programs, more bidders typically translate into better financial outcomes — particularly when inventory is limited and demand is high.
A Window of Opportunity — But Timing Still Matters
While current market conditions are favourable, the long-term trajectory of demand will continue to depend on broader economic and policy factors.
Costello noted that predicting how long the current demand surge will last is difficult, but the underlying shift in buyer behaviour appears durable.
“How long does that go on for? It’s very hard to predict. I think it will never go back to being as much of a struggle as it was, because people are now realising the running costs that they can actually reduce or save.”
This insight highlights an important consideration for fleet planners: the market may stabilise over time, but the structural drivers supporting EV demand — particularly lower operating costs — are likely to remain.
Reassessing Disposal Strategies
For many organisations, the decision to hold or sell EVs over the past few years was influenced by uncertainty around resale performance. That uncertainty is now being replaced by stronger market signals and better data.
Fleets that delayed disposal due to concerns about residual values may want to reassess their strategy in light of current demand conditions.
Costello reinforced the message that the market environment today is materially different from what fleets experienced even a short time ago.
“There’s no doubt that it’s a far, far better time to be selling used EVs than it was even a few weeks ago.”
What This Means for Fleet Managers
The current used EV market is characterised by strong demand, increased buyer competition, and improving confidence in vehicle performance. For Fleet Managers and Leasing Companies, these conditions create a practical opportunity to optimise disposal timing and strengthen financial outcomes.
While every fleet has unique operational requirements, the message from the market is clear: organisations that review their replacement plans now may be able to capture value that was not available in previous years.
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