BYD's Auction Deal and the Rise of the Used EV Market
BYD Australia partners with Pickles to auction second-hand EVs. Here's what a growing used EV market means for novated lease holders. Read more.
The used electric vehicle market in Australia is quietly maturing. According to a report by The Driven (Source 1), BYD Australia has signed a deal with Pickles — one of the country's largest vehicle auction networks — to move its second-hand fleet vehicles through a formal remarketing channel. At the same time, electrics and plug-in hybrids are taking a growing share of the broader used car market.
This is less of a headline moment and more of a structural shift. When a major manufacturer starts treating its used stock as a real asset class worth managing properly, it signals that EV supply in the used market is reaching meaningful volume. That has real implications for anyone thinking about a novated lease today.
What this means for novated lease customers
Most novated lease conversations focus on new vehicles — and for good reason, since the FBT exemption for eligible EVs applies to cars you take on under a novated arrangement. But the BYD-Pickles deal matters for a few reasons.
First, residual values are a core part of how a novated lease is priced. A more liquid, better-organised used EV market supports stronger residual values, which can reduce your balloon payment risk at the end of a lease term. Second, more used EV supply puts competitive pressure on new EV pricing generally — and a lower drive-away price means a lower finance base, which flows through to your fortnightly costs. Third, if you're considering a BYD model specifically — the Atto 3, Seal, or Shark ute — it's worth knowing that the brand is building out its remarketing infrastructure in Australia, which is a sign of a maturing local operation, not a fly-by-night importer.
None of this changes the fundamental maths of a novated lease overnight. But it's one more data point that the EV transition in Australia is moving from early-adopter territory into something more mainstream — and the used market catching up is part of that story.
Common questions
Can I novated lease a used EV?
Yes, novated leases can be structured over used vehicles. However, the FBT exemption for eligible zero or low-emission vehicles currently applies to new vehicles (or demonstrators) that have not been previously held under a novated lease. A used EV lease can still offer pre-tax salary packaging benefits, but the tax treatment differs — get advice specific to your situation.
Does the BYD-Pickles auction deal affect my existing novated lease?
Not directly. If you're already in a novated lease on a BYD vehicle, your contract terms and residual are locked in. The broader effect is on market residual value benchmarks over time, which matters most at the end of your lease term when you're deciding whether to buy the car out, re-lease, or hand it back.
Are BYD vehicles eligible for the EV FBT exemption?
Several BYD models have been listed as eligible low-emission vehicles under the FBT exemption framework. Eligibility depends on the vehicle's base value not exceeding the luxury car tax threshold and the car meeting the zero or low-emission definition. Check the ATO's current list and confirm with your novated lease provider before signing anything.
Why does used EV supply matter if I'm leasing new?
Residual values on your new lease are partly benchmarked against what the same car is worth on the used market at the end of your term. A deeper, more liquid used EV market generally supports more predictable residuals, which is better for everyone in the leasing chain.