Used-car buyers are more spoilt for choice than ever when shopping for their next vehicle. Though new electric cars are becoming cheaper, some savvy consumers are flocking to used EVs.
Even as new electric models become more affordable, experts say consumers can save thousands of dollars in the used car market with this one method.
One such consumer is Western Australian driver Letty Zulu, who bought a 2024 Tesla Model Y as a necessity after her previous vehicle died.
“I chose a second-hand Tesla [Model Y] because we didn’t have enough time to wait for a new one, as my old car had stopped working,” Zulu told Drive.
Rather than opt for a petrol or hybrid car, she decided to take the electric plunge as she had always dreamt of one day owning a Tesla.
“I just love the way they are designed, the smartness of them. Other EVs just don’t seem as smart as a Tesla,” she said.
“We were told that a new one would take a couple of months to get here. I went with electric because now I think they are coming into season; more and more cars are becoming electric.”
Instead of paying outright, Zulu decided to use novated leasing on her second-hand Tesla, with industry bodies highlighting that salary sacrificing is becoming more popular among used EV buyers because of the financial savings.
According to Sophie MacIntosh, a spokesperson for novated leasing provider Smart, the cost of a used EV, like any other second-hand model, depends on several factors, including age, condition, and mileage.
“The good news is that many second-hand EVs qualify for the same tax benefits as a new EV, meaning drivers can take out a novated lease on a second-hand EV and pay for the vehicle using pre-tax income, typically saving drivers thousands by reducing their taxable income,” MacIntosh told Drive.
“When you buy outright, you’re using money you’ve already paid income tax on. A novated lease lets you pay eligible car and running costs from your pre-tax salary, which can reduce your income costs.
“The tax savings on a used EV are higher than for a petrol, diesel or hybrid vehicle because the EV and eligible associated expenses are generally exempt from the fringe benefits tax, as long as the vehicle was first held and used on or after 1 July 2022, and luxury car tax has never been payable.”
As reported by Drive in September 2026, a report from the National Automotive Leasing and Salary Packaging Association (NALSPA) highlighted that new EV owners who purchased their vehicle in the first six months of 2026 will have collectively saved an estimated $76 million in fuel costs by the end of the year.
The Smart spokesperson said the pool of second-hand electric cars is growing, and demand for EVs is rising amid soaring petrol costs and the cost-of-living crisis.
“We are seeing the range and availability of second-hand EV models increasing all the time as EV drivers upgrade to new models. Over the past 12 months, the second-hand EVs purchased on a novated lease by our customers spanned more than 80 different EV models,” MacIntosh said.
“Tesla’s Model Y and Model 3 have been the most popular second-hand EVs leased by our customers over the past year, accounting for around a quarter of second-hand EV leases. The MG4, BYD Sealion 7 and BYD Atto 3 round out the top five.”
MacIntosh highlighted that any used car can qualify for a novated lease, though other powertrains don’t have the luxury of some tax exemptions.
As reported by Drive in October 2026, some experts said second-hand Teslas are worth considering due to a healthy supply of replacement parts, an established servicing network, and public charging infrastructure.
Nathan Gore-Brown, the treasurer of the Australian Electric Vehicle Association, previously told Drive, “Getting parts for those cars is also becoming increasingly easy via aftermarket and international channels”.
“There are also several well-known aftermarket companies that are selling Tesla OEM equivalent suspension and electrical parts and hold them in stock at branches across Australia,” he said.
Additionally, Drive’s content editor Tung Nguyen pointed to the brand’s public charging network as a key consumer benefit, given its prevalence across Australia and seamless software integration.
“Buying from Tesla grants access to the Tesla network in more ways than one. First there is the Tesla Supercharger network that is arguably the best and most reliable public charging infrastructure in Australia,” he said.
“Because it is Tesla-owned and Tesla-run, it integrates seamlessly into the infotainment system’s satellite navigation and can dynamically route you towards a charger if you won’t make it to your destination.”
Tesla’s Supercharger network is still available to non-Tesla owners on a subscription basis or at a higher-pay-per use access rate. However, not all Tesla chargers are compatible with EVs from other models.
Though relying on public charging may seem intimidating, other EV owners, as well as Zulu, said they haven’t encountered any issues despite not having access to a home charger.
“I use public chargers; I’ve never had a problem with them. There are always plenty to choose from,” she said.
Extracted in full from: https://www.drive.com.au/caradvice/how-to-save-thousands-on-a-used-ev/
