Oil shock sparks electric vehicle price surge in australia
The conventional wisdom of the used car market – that depreciation is an immutable law – has been abruptly overturned. Across Australia, dealerships are raising prices on usedelectric vehicles, a phenomenon driven by a sudden and ferocious demand spurred by soaring petrol costs. It’s a market shift so rapid, it’s catching even seasoned observers off guard.
The ev premium: what's driving the price hike?
MotorMetrics, a Perth-based vehicle data firm, has documented the dramatic repricing. Tesla’s Model Y, for example, has seen a price increase of over 6% in just two weeks of March. The MG4, Polestar 2, and Tesla Model 3 – all fully electric – are also commanding higher prices. Jake Sale, founder of MotorMetrics, observes that while price drops are typical for used vehicles, “up is very unique.” The underlying cause? A palpable and immediate consumer hunger for alternatives to fossil fuel-powered cars.
The surge isn't just limited to dealerships. Rental platforms like Turo Australia are experiencing a 70% jump in bookings for EVs and hybrids compared to last year. Rob Chan, Turo's managing director, describes it as “one of those waves of consumer interest changes that is very unique,” drawing a parallel to the post-pandemic “revenge travel” boom. Australians, facing the prospect of escalating fuel bills and scrapped Easter road trip plans, are seizing control by opting for vehicles that, for the first time, offer a compelling economic alternative.
But the shift isn’t happening in a vacuum. Data reveals a corresponding collapse in prices for used diesel and petrol vehicles, with some models shedding as much as 20% of their value. This stark contrast underscores the speed and intensity of the change. Even economists are noting the significance. Peter Esho, head of Sydney-based Esho Capital, believes we might be witnessing “one of the last” oil shocks, accelerating EV adoption exponentially.
The data speaks volumes: weekly EV loan volume increased by a staggering 161% in March alone, according to Commonwealth Bank figures. Consumers, having perhaps learned from past mistakes – as one Turo renter, Har Rai Singh, discovered after testing EVs extensively – are actively seeking to avoid the pitfalls of combustion engines. Singh, after renting several EVs, concluded, “While people talk about waiting for chargers, now we’ve got people waiting for petrol pumps, and waiting to pay more than $100 to fill up a tank. It doesn’t make sense to me any more to hold on to a combustion engine.”
Australia’s EV market share has climbed to roughly 13% of new purchases, a figure poised to increase with more model availability and improved charging infrastructure. This isn’t merely a temporary blip; it's a tangible sign that Australia's long-delayed transition to electric mobility may have finally arrived, propelled by the harsh realities of the global energy crisis.