50,000 EVs Sold in June: What the Used Market Surge Means for You
Australia hit 50,000 EV sales in June 2026. A wave of novated lease expiries is about to reshape the used EV market. Here's what PAYG employees should know.
Australia hit a milestone in June 2026: 50,000 new and used electric vehicles sold in a single month, according to a report covered by The Driven [Source 1]. Rising fuel costs are pushing more drivers toward EVs, and the second-hand market is about to get a lot more interesting.
Here's the part the headlines bury: a significant chunk of those new EV sales over the past two to three years were funded through novated leases. Those leases are now approaching their end-of-term dates. When they expire, a wave of relatively low-kilometre, well-maintained EVs will hit the used market — and that changes the calculus for both new and used EV buyers.
What this means for novated lease customers
If you're already in a novated lease, the growing EV market is good news. More competition among dealers and more residual value data makes it easier to price your next vehicle accurately — and potentially negotiate better.
If you're considering a novated lease on an EV for the first time, the timing is relevant in two ways. First, the FBT exemption for eligible battery electric vehicles is still in place, meaning a qualifying EV on a novated lease currently attracts no fringe benefits tax — a material advantage that a straight cash purchase or a personal loan can't replicate. Second, the incoming supply of used EVs from expiring leases may affect residual values, which flow directly into your lease repayments. Getting your structure right now — before the market adjusts — matters.
If you're eyeing the used EV market instead, patience may pay off. The report signals that supply is coming. But keep in mind: the FBT exemption applies to new and demo vehicles on a novated lease, not second-hand EVs. That distinction is worth understanding before you assume a used EV novated deal delivers the same tax outcome.
Common questions
Does the FBT exemption apply to used EVs on a novated lease?
No. The current FBT exemption for electric vehicles applies to new or demo eligible vehicles, not second-hand ones. If you're considering a used EV, the tax treatment is different — speak to a licensed adviser about what structure suits your situation.
Will the surge of used EVs from expired leases lower prices?
Potentially, yes — more supply typically puts downward pressure on prices. The scale and timing will depend on how many leases mature in a short window and what condition those vehicles are in when they come back to market.
How does rising EV adoption affect residual values in my novated lease?
Residual values are set at the start of your lease based on ATO guidelines and market expectations. A larger used EV supply could affect real-world resale values at end of term, which is worth factoring in when choosing your lease duration and vehicle.
Is now a good or bad time to start a novated lease on an EV?
It depends on your personal situation, the vehicle you want, and how long you plan to lease. There's no universal answer — but the FBT exemption and fuel savings are real advantages that exist right now, and no one knows how long the current policy settings will last.
What happens at the end of a novated lease?
You typically have three options: pay the residual value and own the car, refinance into a new lease, or sell the vehicle and use the proceeds to cover the residual. Your employer's involvement ends when your lease does.