The Australian used car market is shifting rapidly. After years of soaring prices due to supply shortages and high demand, we’re now seeing a steady decline in prices as stock levels stabilize. For drivers considering their next vehicle, this presents a unique opportunity to access quality pre-owned cars at more competitive prices.
Why Are Used Car Prices Falling?
In recent years, global supply chain disruptions and semiconductor shortages significantly reduced the availability of new vehicles, pushing more buyers toward the used car market. As a result, prices spiked, and long wait times became the norm.
Now, with supply issues easing and more new vehicles arriving in the market, the demand for used cars has softened, leading to price reductions across various segments.
Another key factor influencing the market is the rise of electric and hybrid vehicles.
As more drivers transition to EVs, an increasing number of petrol and diesel cars are entering the second-hand market. This growing supply is driving competition and further contributing to lower prices.
What About Used EVs?
One common hesitation around buying a new EV has been depreciation.
New electric vehicles often experience significant value drops within the first few years. However, this depreciation can actually work in favour of second-hand buyers.
With the biggest drop in value already absorbed, purchasing a used EV can be a cost-effective way to make the switch to electric while still benefiting from the latest technology.
In many cases, the technology in used EVs remains up to date. For example, Tesla vehicles receive ongoing software updates, meaning a 2023 Tesla Model 3 in 2025 will still feature many of the latest enhancements, despite being a couple of years old.
Novated Leasing: A Smart Way to Drive a Near-New Car
At Remunerator, there is much interest surrounding leasing near-new vehicles, and many drivers are surprised to learn that novated leasing isn’t just for brand-new cars.
Leasing a used car can provide even greater affordability while still offering the benefits of a salary-packaged vehicle, such as:
✔️ Paying with pre-tax dollars – Reduce your taxable income and take home more pay.
✔️ Bundled costs – Manage expenses like insurance, servicing, and registration in a single payment.
✔️ GST savings – Pay no GST on running costs and save on the purchase price when buying from a dealership.
✔️ Lower depreciation impact – Used cars have already experienced their biggest depreciation hit, helping them hold value better.
✔️ Dealer warranties – Buying from a dealer often includes additional warranty coverage for peace of mind.
Used EVs and the Electric Car Discount
For those considering an electric vehicle, novated leasing can enhance the savings even further. Under the Australian government’s Electric Car Discount, used EVs can qualify for Fringe Benefits Tax (FBT) exemption if they meet the following criteria:
⚡ Battery Electric Vehicle (BEV) only (plug-in hybrids are not eligible from April 1, 2025 onwards)
📅 First registered on or after 1 July 2022
💰 Valued under the Luxury Car Tax threshold
This means that even a pre-owned EV could offer significant cost savings through tax benefits and lower running costs.
Three Popular Near-New Vehicles for Novated Leasing
Many drivers are turning to near-new vehicles to balance affordability with quality. Here are three of our most popular near-new vehicles to novate:
1. Mazda CX-5 (2019):
Market Price: ~$20,000
Lease from: $54/week + running costs
Check current listings
2. Toyota Corolla (2020):
Market Price: ~$25,000
Lease from: $76/week + running costs
Check current listings
3. Tesla Model 3 (2023):
Market Price: ~$43,000
Lease from: $108 + running costs
Check current listings
Is a Near-New Car Right for You?
The current market conditions provide a compelling opportunity for those looking to upgrade their vehicle while managing costs effectively. Whether you’re considering a fuel-efficient hybrid, a used EV, or a reliable petrol car, novated leasing can offer a structured way to make ownership more affordable.
Interested in exploring your options? Speak with our team to see how much you could save by leasing a near-new car today.
Weekly costs quoted based on an annual salary of $100,000, a 60-month lease term, annual 15,000km, and VIC registration. Actual savings will vary based on your individual circumstances. RRP is based on the driveaway price found on carsales.com.au, inclusive of VIC registration, on-road costs, and government charges.
The information supplied on this page is provided as an information guide only. It contains Remunerator (Aust) Pty Ltd ACN 074 423 966 interpretation of the current Tax Legislation which is subject to change at any time without notice and should not be relied on as a substitute for legal or other professional advice. Example uses income tax rates effective 1st July 2024.