Quarterly Automotive Report

Fuel prices reshape buyer behaviour

Buyer preferences shifted noticeably throughout Q2.

During April and May, demand remained firmly focused on used electric vehicles, with the Datium Insights Used EV Index continuing to climb before peaking at 122 per cent in May. At the same time, diesel and petrol values continued to soften as rising fuel prices influenced purchasing decisions.

By June, however, every fuel type had softened - including hybrid vehicles, which had remained largely resilient to external market pressures over the past two years. Hybrid values eased to 126 per cent, returning to levels last seen in October 2025.

As a result, the Datium Insights Used ICE and EV Index is now broadly aligned for the first time since late 2024, signalling a more balanced market across fuel types.

Shaw says buyers are increasingly looking beyond purchase price alone.

“Fuel efficiency and total cost of ownership are becoming much bigger considerations. Buyers are taking more time to compare vehicles and are increasingly factoring ongoing running costs into their purchasing decisions.”

Supply also emerged as one of the defining themes of the quarter.

Feedback from major fleet operators indicates lease extensions are becoming more common, some fleets are shifting to month-by-month ("inertia") leasing arrangements, and replacement cycles are being deferred while organisations reassess capital expenditure and fleet strategies.

Combined with ongoing global shipping constraints earlier in the quarter, these factors influenced inward volumes and sales throughout.

As broader economic confidence improves and replacement cycles begin to normalise, Pickles expects the supply of late-model used vehicles to strengthen through Q3, providing buyers with greater choice and supporting a return to more typical seasonal conditions.

Following record activity earlier in 2026, the used EV market stabilised during the second half of Q2.

Volumes were approximately four per cent lower than Q1 peak levels, while prices softened through May and June as supply increased.

Meanwhile, the average distance travelled by vehicles entering the used market increased materially. EVs sold during May and June averaged approximately 51,000 kilometres, compared with around 29,000 kilometres earlier in the year, suggesting many owners chose to remarket higher-kilometre vehicles while resale values remained favourable.

Seller reserve expectations also strengthened, reflecting continued confidence in EV residual values despite increasing supply.

Shaw says these changes reflect a market that is maturing rather than slowing.

“The used EV market is evolving exactly as we'd expect. Buyers have more choice, vehicle quality continues to improve and pricing is beginning to reflect a more mature and sustainable marketplace.”

The Federal Government's continued support for Fringe Benefits Tax (FBT) concessions on eligible electric vehicles (EVs) is helping reinforce a broader shift in how Australians approach vehicle ownership, with affordability and running costs increasingly influencing purchasing decisions.

While cost-of-living pressures continue to influence household spending, Pickles is seeing growing interest in vehicles that offer lower ongoing operating costs, particularly EVs flowing into the used vehicle market through government, corporate, and novated lease channels.

Figure 2b. Pickles EV page view growth (YoY)

Figure 2c. Pickles EV bidding growth (YoY)

The continuation of FBT exemptions for eligible EVs in the 2026 Federal Budget has further strengthened novated leasing demand, particularly as the policy reaches its four-year anniversary in July 2026 - aligning with typical novated lease replacement cycle.

As a result, Pickles expects increasing numbers of salary-packaged EVs to begin entering the secondary market over the next 12 months as drivers look to upgrade vehicles while continuing to access available FBT incentives.

Rather than focusing solely on upfront purchase price, buyers are increasingly weighing fuel savings, servicing costs, tax incentives, and overall monthly affordability.

The shift is also contributing to growing maturity within the used EV market, as increasing numbers of ex-fleet and salary-packaged vehicles begin flowing into the secondary market.

Pickles says many sellers of novated lease EVs have benefited from stronger-than-expected retained values, with some models experiencing stronger resale outcomes compared with earlier market expectations when the policy was first introduced.

Brendon Green, General Manager - Automotive Solutions at Pickles, says affordability considerations were now playing a much larger role in vehicle purchasing behaviour.

“Consumers are becoming far more conscious of whole-of-life vehicle costs, not just the purchase price,” he says.

“The continuation of FBT incentives has helped keep novated leasing firmly in the conversation, particularly for buyers looking to reduce ongoing running costs.”

“We're now seeing the next phase of that policy support, with more EVs entering the used market and creating greater accessibility for a broader range of buyers.”

Green says future market growth is likely to be driven by replacement activity, as many early novated lease adopters reach the end of their original lease terms.

“For many drivers, the economics of replacing an existing novated lease EV and continuing to access FBT incentives are becoming increasingly attractive,” he says.

Pickles says used EV accessibility continued to improve as fleet volumes increased and pricing stabilised across parts of the market.

Figure 2d: Top EV makes sold in FY26 (public auction)

Figure 2e: Top EV makes sold in FY26 (public auction)

The growing availability of used EVs is also helping address one of the market's earlier barriers to adoption - entry price.

While Australia recorded strong EV uptake in 2025, higher fuel prices accelerated demand through early 2026. EVs accounted for more than 20 per cent of new vehicle sales in May before increasing to 24 per cent in June, with a significant proportion purchased through novated leasing.

At the same time, rising fuel, insurance and servicing costs across the broader vehicle market are increasing consumer focus on total ownership economics rather than vehicle prestige or size.

Pickles expects novated leasing and salary packaging to remain influential market drivers through the second half of 2026, particularly as more fleet EVs transition into the used vehicle market.

“The used market is becoming an increasingly important part of Australia's EV transition,” says Green.

Pickles is also preparing for increased activity in the novated lease remarketing sector, with the company expected to launch a dedicated remarketing solution to two major novated providers this quarter.

The solution is designed to support novated lease providers and drivers by streamlining the resale process for EVs transitioning out of lease arrangements, including dealer, private buyer and direct purchase pathways.

“As more fleet and novated lease vehicles come through the market, buyers are gaining access to newer technology and lower running costs at increasingly accessible price points,” adds Green.

What this means for employers, providers, and drivers

As more salary-packaged EVs reach the end of their lease terms, planning an effective remarketing strategy will become increasingly important. Explore Pickles' Novated Lease Remarketing.

Australia's collectible vehicle market is undergoing a generational shift, with demand increasingly moving away from traditional classics and toward globally recognised enthusiast vehicles from the 1990s and early 2000s.

According to Pickles, while premium and rare vehicles continue to attract strong bidding activity, broader collectible market conditions softened during the second quarter as cost-of-living pressures and weaker consumer confidence impacted discretionary spending.

Despite softer conditions emerging across parts of the market in recent months, Pickles' Prestige, Luxury, and Collectible categories have experienced strong growth over the past four financial years.

However, Pickles says the strongest demand growth is increasingly being seen in “modern classics” with global enthusiast appeal, particularly highly original Japanese performance vehicles.

Richard Bowen, Head of Prestige and Dealer at Pickles, says the collectible market was evolving alongside changing buyer demographics and international demand trends.

“The good cars will always make good money, but the market is definitely changing. We're seeing softer conditions across a range of collectible segments as buyers become more cautious with discretionary spending and auction clearance rates ease,” he says.

“At the same time, vehicles with strong global reputations - particularly highly original Japanese performance cars from the late 1990s and early 2000s - are attracting significant attention internationally.”

Bowen says vehicles such as Nissan Skylines were increasingly benefiting from global collector demand, particularly as they become eligible for import into the United States under its 25-year import rules.

“Original, unmodified examples are becoming much harder to find, and that scarcity is driving strong competition globally,” Bowen adds.

Pickles says broader demographic trends are also influencing the market, with buyer interest shifting away from some older collectible categories and toward vehicles associated with younger enthusiast generations.

The company expects collectible demand to remain selective through the second half of 2026, with buyers prioritising rarity, originality, provenance, and international desirability.

2024 Lamborghini Huracan STO sold for $564,000 in April

1973 Holden Monaro HQ GTS Coupe sold for $150,000

What this means for prestige and collectible owners

In an increasingly selective market, originality, provenance, and the sales channel you choose can materially influence the final result. Explore Prestige & Luxury Vehicle Sales.

Australia's transport sector continues to face a challenging operating environment, with softer freight volumes, rising costs, and broader economic uncertainty placing pressure on operators across the supply chain.

However, despite these headwinds, the used truck market has continued to demonstrate resilience, with Pickles data showing ongoing buyer demand and stable market activity across key transport asset categories.

Pickles data shows total truck sales increased from $251 million in FY24 to $265 million in FY25, before reaching $301 million in FY26. This represents growth of 20 per cent over two years and underscores the resilience of the market despite challenging operating conditions across the broader transport and logistics sector.

James Chauncy, General Manager - Industrial Sales at Pickles, says the transport market is continuing to perform better than many might expect given the challenges facing operators.

"There's no question transport businesses are operating in a difficult environment. Freight volumes are softer than they have been in recent years and operators continue to face pressure from fuel costs, labour shortages, and tight margins," he says.

"What we're seeing, however, is a market that remains active despite those challenges. Quality assets continue to attract buyers and businesses are still making investment decisions when the economics stack up."

While the COVID and immediate post-COVID years created unusual market conditions across both new and used transport assets, Pickles says there are signs the market is beginning to return to more traditional buying and selling patterns.

Chauncy says some of the volatility that characterised recent years is beginning to ease.

“For several years the market was heavily influenced by supply chain disruption, extended lead times, and extraordinary demand. Some of those factors have now started to normalise.

“We're beginning to see more traditional market behaviours re-emerge, where asset condition, age, specification, and price are once again becoming the primary drivers of buyer decision-making,” says Chauncy.

Pickles believes the resilience of the used truck market is also being supported by the rising cost of replacing transport assets.

With new truck pricing remaining elevated, many operators are carefully assessing capital expenditure and seeking value through quality used equipment.

Chauncy says operators remain cautious, but quality assets continue to perform well.

“Transport businesses are still investing, but they're doing so with a much greater focus on value and return on investment. The cost of replacing equipment remains significant, which is continuing to support demand for quality used assets.

“The businesses that need equipment are still buying equipment. The difference today is that buyers are being more selective and more disciplined than they were during the peak of the market.”

As the transport sector continues to navigate economic uncertainty, Pickles expects market fundamentals such as buyer participation, clearance rates, and asset quality to remain key indicators of performance throughout the remainder of 2026.

What this means for transport operators

As replacement cycles return to more traditional patterns, understanding current buyer demand can help maximise asset returns. Explore Pickles Machinery & Industrial Sales.

Australia's salvage market is evolving, with growing participation from individual buyers, strong demand for repairable vehicles, and increasing interest in electric vehicle (EV) salvage reshaping buying behaviour across the sector.

While salvage vehicles have traditionally attracted interest from repairers, dismantlers, and trade buyers, Pickles is seeing a broader mix of participants entering the market and competing for quality assets.

According to Pickles data, average bidder participation per salvage auction event has increased significantly over the past two years, highlighting growing confidence in the sector and expanding buyer interest across multiple vehicle categories.

Nick Johnson, General Manager - Salvage at Pickles, says the market continues to attract strong engagement despite ongoing economic pressures.

"Cost-of-living pressures are affecting many parts of the economy, but we're continuing to see strong participation across the salvage market," he says.

"Buyers are becoming increasingly sophisticated in how they assess salvage assets and they're identifying value across a broader range of vehicle types than we've traditionally seen."

Pickles data shows repairable vehicles consistently attract strong buyer participation, with high levels of bidding activity across a broad range of vehicle types.

Johnson says repairable vehicles continue to appeal to buyers looking for opportunities in a highly competitive used vehicle market.

"Quality repairable vehicles remain highly sought after. When buyers can clearly understand the scope of repairs and the underlying value of the asset, competition is often very strong," he says.

"As cost-of-living pressures continue to influence purchasing decisions, many buyers are looking more closely at repairable vehicles as a way to access late-model assets at a lower entry price."

The market is also seeing growing interest in EV salvage.

While EVs still represent a smaller proportion of total salvage volumes than internal combustion engine (ICE) vehicles, Pickles data shows EV salvage assets are attracting comparable levels of buyer interest to their ICE counterparts, with bidding activity strengthening in recent quarters as confidence in EV technology and repair pathways continues to grow.

Johnson says the trend reflects the increasing maturity of Australia's EV market.

“As EV ownership continues to grow, we're seeing greater familiarity and confidence from buyers participating in the salvage market. That confidence is supporting healthy competition for quality EV salvage assets and contributing to a more active market overall.”

Pickles expects buyer participation, demand for repairable vehicles, and interest in EV salvage to remain important market indicators throughout the second half of 2026 as the sector continues to evolve.

“The salvage market has always adapted to changes in the broader automotive landscape,” says Johnson.

“What we're seeing today is a more diverse and engaged buyer base, which is helping support strong outcomes across a range of vehicle categories.”