Quarterly Automotive Report

The first quarter of 2026 was shaped by a mix of economic caution, geopolitical uncertainty, and shifting buyer priorities across the used vehicle market. January and February tracked broadly as expected, but March introduced some volatility as rising petrol and diesel prices pushed running costs back into sharper focus for households and fleets.

That pressure appears to have influenced where buyers directed their attention. In March, Pickles recorded a 163 per cent increase in searches for electric vehicles across its website. The additional views translated into increased buyer activity with average EV bidders increasing 45 per cent compared to February.

The back end of March saw EV auctions experiencing 100 per cent clearance rates and a record number of EVs selling nationally. While alternate fuel vehicles are now a key focus, smaller, more fuel-efficient vehicles also remain popular.

“We saw buyers respond quickly to changing fuel costs, particularly in March,” says Fraser Ronald, Chief Commercial Officer at Pickles. “What stood out was not just the lift in EV interest, but the broader shift towards vehicles that offered better running-cost efficiency.”

While much of the attention was on EVs, the broader used market remained relatively resilient. The Datium Insights Used EV Index rose to 107 per cent, while petrol and diesel vehicles largely flattened towards the end of the quarter resulting in a five per cent reduction when comparing Q1 2026 to Q1 2025. That suggests demand did not fall away completely, but it did become more selective as buyers weighed fuel spend more carefully.

What Pickles saw in March was not just a movement in pricing or volumes, but a change in buyer behaviour. Search activity, landing-page traffic, and watch activity all pointed to consumers actively reassessing their options as fuel costs rose.

That matters because these behaviours are often among the earliest signals of changing buyer sentiment. Before buyers transact, they research, compare, and watch the market. In that sense, March did not just show stronger EV curiosity. It also suggested more Australians were actively weighing total ownership costs and looking more closely at vehicles that could reduce day-to-day running expenses.

Comparing Q1 2025 with Q1 2026, overall vehicle sale volumes and asset receipts were broadly similar. During previous times of economic uncertainty, some customers have held vehicles longer or extended leases, however, there is no evidence of this behaviour to date. In fact, the recent surge in EV demand is prompting fleet reviews, with older EVs increasingly being returned to capitalise on stronger resale values.

Early signs of the New Vehicle Efficiency Standard are also beginning to show in the used market. While the effect is more visible in the new-car sector with the reduction of petrol vehicle deliveries and growth in EV and PHEV, there is always a lag before that change is reflected in remarketing channels.

Pickles fuel type mix has also begun to change over the past 15 months with a combined six per cent reduction of petrol and diesel vehicles to be taken up by EV and hybrid vehicles.

Even if geopolitical pressures ease, the shift towards EVs, hybrids, and smaller fuel-efficient vehicles is likely to continue. For many buyers, Q1 was a reminder that fuel-price exposure still matters and that running costs remain central to vehicle choice.

As cost-of-living pressures continue to influence buyer behaviour, used EVs are becoming a more realistic option for a broader range of Australians. Pickles has seen a 163 per cent uplift in searches containing the term “EV” on its website, suggesting buyers are actively exploring alternate fuel options as they weigh purchase price, fuel spend and ongoing ownership costs.

For a long time, EVs were seen as appealing in principle, but difficult to justify on price. In the used market, that is starting to change. As more stock becomes available and early depreciation works through the system, used EVs are becoming more accessible and, in many cases, much more competitive with petrol vehicles.

“Used EVs are starting to make more sense for everyday buyers,” says Brendon Green, General Manager, Automotive Solutions at Pickles. “What was once seen as a premium purchase is becoming a more practical option, particularly for people who are happy to buy used.”

That shift is most obvious in pricing. Three-year-old Tesla Model 3 vehicles, which had previously been transacting in the low-$30,000 range, are now closer to $40,000, while some BYD Atto 3 models that had been available in the mid to high $20,000s are now closer to $30,000. Even with this recent uplift due to the fuel crisis, used EVs are still generally selling for around 60 to 70 per cent of their original new-car price, helping open the market to more buyers.

The numbers become even more compelling when running costs are taken into account. Used EVs still offer the same day-to-day benefits as new ones, including lower charging costs and generally lower maintenance requirements than an equivalent internal combustion engine vehicle. With fewer moving parts and no need for servicing items such as oil changes or exhaust repairs, ongoing costs can be lower over time.

With fuel costs rising sharply, total cost of ownership is becoming more important in purchase decisions. Even where used EV prices have firmed, the benefit from lower fuel and maintenance costs ensure any gap is negligible.

“The upfront price is only one part of the picture,” says Green. “When buyers also factor in lower fuel and servicing costs, used EVs start to look like a smart financial decision as well as an environmental one.”

Insurance can still be a consideration in some cases, but lower insured values are helping to narrow the gap in the used market. Many vehicles also continue to carry battery warranty coverage, which can give buyers added confidence.

For private buyers, novated lease customers, and fleets looking to test electrification without committing to new-vehicle pricing, the appeal of used EVs is clearly growing.

“We are seeing genuine buyer interest in this space,” says Green. “People are doing the research and working out whether a used EV can fit their budget and lifestyle. For a growing number of buyers, the answer is yes.”

Repossession is often viewed as an asset recovery exercise, but Pickles’ data suggests the stronger story is about resolution.

Across 2025, the largest share of completed repossession matters were resolved through collection outcomes, including payment arrangements, settlements, and arrears recovery following escalation. That reinforces the role of repossession as a mechanism for engagement and control, rather than simply a final enforcement step.

Hardship outcomes also remained a meaningful part of the mix, highlighting continued financial pressure across consumer and commercial portfolios, while physical repossession accounted for a smaller share of completions than financial resolution outcomes.

That pattern has broadly continued into Q1 2026, although the data points to some subtle shifts. Collection outcomes remain the dominant channel and strengthened through March relative to the same time last year. Repossession outcomes lifted modestly in January and February before flattening in March, while hardship eased from its January level. Even so, recent feedback from financiers suggests hardship may rise again in the coming months if interest rates continue to increase and fuel prices remain elevated.

The clearest operational insight is around timing. Pickles' data shows that matters issued between 30 and 59 days in arrears deliver the strongest outcomes, with an 81 per cent success rate. Success rates then decline as escalation is delayed, falling by around seven per cent between 60 and 89 days in arrears and by a further one per cent between 90 and 120 days.

“What stands out in this data is that timing has a direct impact on outcome,” says Gareth Rattray, Head of Finance and Mercantile Services at Pickles. “The earlier a matter is issued, the better the chance of achieving a stronger commercial result, whether that is collection, managed hardship or physical recovery.”

This matters in a market where volumes are rising. Pickles received 1,800 repossessed motor vehicles in Q1 2026, up from more than 1,550 in Q4 2025 and more than 1,500 in Q1 2025. Repossessed vehicle volumes sold also increased 33 per cent across 2025 compared with 2024. In CY25, the average repossessed vehicle sold was valued at around $23,000, up approximately $1,000 year on year, and averaged 7.1 years of age with 122,000 kilometres.

It is also worth noting that overall repossession levels remain 40 to 50 per cent below pre-COVID levels, reflecting a greater industry focus on hardship and more structured resolution pathways.

For lenders, the message is clear: earlier intervention supports stronger outcomes. Repossession is not just a recovery tool. It is a broader resolution pathway that can preserve more options when action is taken sooner.

The fuel shock that hit in March has brought operating costs back to the centre of decision-making for transport operators.

While the immediate impact has been felt at the bowser, the broader issue is uncertainty. When diesel prices rise quickly and supply-chain risk enters the conversation, fleet operators tend to look more closely at utilisation, replacement timing and the types of assets that can deliver better efficiency over time.

At Pickles, we expect this to sharpen buyer focus on transport assets that can help reduce fuel exposure without compromising operational flexibility. That is likely to mean stronger interest in later-model, fuel-efficient trucks and light commercials in the near term, while the conversation around alternative fuel transport continues to build.

“In March we've seen a 64% uplift in EV and Hybrid searches for trucks across our website compared to February, which highlights that operating costs are back at the top of the agenda” says Hugh Rainger, General Manager – Industrial Corporate and Fleet at Pickles. “When fuel volatility rises, buyers and fleet operators look harder at efficiency, whole-of-life cost, and whether their current asset mix is still the right fit.”

That does not mean the market will shift overnight. For many operators, particularly those running long-haul routes, diesel remains the practical reality. Infrastructure, route length, and asset availability still shape what is feasible. But periods of fuel disruption do tend to accelerate interest in alternatives that may previously have sat further down the priority list.

In transport, that can include hybrid and battery electric options in selected applications, particularly where routes are shorter, utilisation is predictable and operators have greater control over charging or depot access. It can also support stronger demand for used assets that are simply more efficient to run, regardless of fuel type.

At Pickles, this is most visible in the increased enquiry for late-model prime movers, stronger interest in lower-kilometre light vehicles, and growing buyer attention toward hybrid and electric truck categories. The same pressure may also influence supply. In volatile conditions, some operators delay replacement and hold assets for longer, while others move earlier to remarket equipment that no longer aligns with their operating profile.

Pickles is currently seeing no material change in vendor timing, with some vendors holding assets longer and more selective disposal decisions in fuel-sensitive categories. That can create a more selective market, with buyers looking harder at operating efficiency, maintenance profile and suitability for task.

The broader point is that fuel shocks do not just affect pump prices. They change buying behaviour. For transport operators, March was a reminder that fuel exposure still matters, and that efficiency remains one of the clearest levers available when conditions tighten.

The growing interest in EVs across the used vehicle market is now flowing clearly into salvage.  At Pickles, buyer demand for repairable EVs has strengthened as more stock comes through and the range of brands entering the channel continues to expand.

That shift reflects a broader change in the market. EVs are no longer concentrated among a small number of makes, and salvage is beginning to reflect that. Chinese-manufactured BYD, Polestar, MG, and LDV now feature regularly in Pickles salvage auctions, while newer entrants such as Geely, Xpeng, and Zeekr are also starting to appear. As the EV market broadens, so too does the mix of EVs entering salvage.

“We are seeing strong demand for repairable EVs resulting in a 35 per cent price increase across March compared to February, particularly where buyers can see a clear pathway to putting the vehicle back on the road,” says Nick Johnson, General Manager, Pickles Salvage. “For many buyers, it is a lower-cost entry point into EV ownership and an opportunity to access the fuel and maintenance benefits that continue to drive broader market interest.”

That demand has been most evident in repairable stock.  In a cost-of-living environment, buyers are looking closely at total ownership costs, and repairable EVs can present a compelling value equation where the damage is manageable and the purchase price stacks up.

A late-March run of more than 30 near-new BYD vehicles listed through Pickles Adelaide provided a strong example. The vehicles, which had suffered external damage following a concrete spray incident, attracted substantial buyer attention ahead of sale, with more than 9,300 watchlist adds and over 41,000 listing views recorded across the campaign period. Buyer activity came from across multiple states, reinforcing the depth of interest in repairable EV stock when the age, condition and price point align.

“The level of attention on the BYD vehicles showed how closely buyers are watching this category.  When near-new EV stock comes to market with repair potential, buyers are prepared to move quickly,” says Johnson.

Importantly, stronger EV interest has not come at the expense of ICE vehicle demand in salvage. Average ICE sale prices remained strong in March, broadly in line with January and February despite the emerging fuel crisis. Petrol and diesel vehicles continue to perform, particularly where repair economics remain favourable. In some cases, ongoing cost-of-living pressures may be supporting that demand, as owners and buyers weigh the cost of repair against the cost of replacement.

This points to a salvage market that is becoming more diverse and more nuanced.  EV demand is rising, more brands are entering the channel, and repairable stock is attracting strong competition.  At the same time, petrol and diesel demand remains resilient, reflecting a market still driven by value and repair economics.