BYD's Used-Car Auction Deal and What It Means for EV Residuals
BYD Australia signs with Pickles to auction second-hand EVs. Here's what a growing used EV market means for novated lease customers. Read the plain-English take.
BYD Australia has signed a deal with Pickles Auctions to sell its second-hand fleet vehicles through a formal auction channel, according to a report by The Driven [Source 1]. It's a small but meaningful moment: one of the world's largest EV manufacturers is now actively building out the resale infrastructure for its Australian vehicles.
For everyday context — Pickles is one of Australia's biggest fleet and commercial vehicle auction houses. Getting BYD stock flowing through a recognised channel matters because it signals that used EVs are moving from a niche curiosity to a mainstream used-car category.
What this means for novated lease customers
One of the most common concerns we hear from people considering a novated lease on a BYD — or any EV — is residual value risk. At the end of your lease term, the residual (the balloon payment or buyout figure) needs to reflect what the car is actually worth. If the used market is thin or unpredictable, that creates uncertainty.
A formal auction partnership with an established operator like Pickles is a positive signal. It suggests BYD is treating residual value management seriously, and that more pricing data will flow into the used EV market over time. More liquidity in the used market generally supports more stable residuals — which is good news if you're mid-lease or evaluating one now.
That said, residual values are not guaranteed, and the used EV market in Australia is still maturing. The FBT exemption that makes EVs attractive under a novated lease — currently applying to eligible battery electric and plug-in hybrid vehicles — means demand for new EVs has been strong, which does create a pipeline of future used stock. How that supply lands in the market over the next few years is worth watching. Any tax treatment claims should be verified against current ATO guidance relevant to your situation.
Common questions
Does the BYD–Pickles deal affect my existing novated lease?
Not directly. Your residual value is set at the start of your lease term. But a more active used EV market over time is generally a positive indicator for the broader EV residual landscape when your lease matures.
Are BYD vehicles still FBT-exempt under a novated lease?
Eligible BYD battery electric vehicles have qualified under the FBT exemption introduced in late 2022. You should confirm current eligibility with your adviser or check ATO guidance, as policy can change and individual circumstances vary.
Why does used EV market depth matter for novated leasing?
Residual values — the estimated worth of your car at lease end — are partly informed by used market activity. Deeper, more transparent used EV markets mean lenders and lessors can set residuals with more confidence, which can flow through to better lease structuring for customers.
Is BYD a good choice for a novated lease in Australia?
BYD has a growing model range eligible for the EV FBT exemption and competitive drive-away pricing. Like any vehicle, the right fit depends on your driving patterns, lease term, and financial situation — not just the brand.
What is a residual value in a novated lease?
It's the agreed value of the vehicle at the end of your lease term, set as a percentage of the original vehicle cost. At lease end, you can pay it out to own the car, refinance it, or hand the car back depending on your agreement.