BYD's Used EV Auction Deal and What It Means for Novated Leasing
BYD Australia is auctioning second-hand fleet EVs through Pickles. Here's what a growing used EV market means if you're considering a novated lease.
BYD Australia has struck a deal with Pickles Auctions to offload its second-hand fleet vehicles — predominantly EVs — into the used car market. According to The Driven [Source 1], electrics and plug-in hybrids are steadily gaining ground in the second-hand space, and this deal is a signal that the supply side is finally catching up.
This matters because one of the persistent criticisms of the EV market in Australia has been the thin resale pipeline. Fleet operators — including novated lease fleets — have long worried about residual values when there aren't enough comparable sales to anchor pricing. BYD partnering with an established auction house like Pickles starts to change that.
What this means for novated lease customers
If you're weighing up an EV on a novated lease, residual value is one of the numbers that quietly shapes your entire deal. A stronger, more liquid used EV market — with real auction data behind it — gives financiers more confidence when setting residuals. That's generally a good thing for the customer.
The FBT exemption on eligible battery electric vehicles still applies for now, and a BYD EV structured through a novated lease can stack those tax benefits on top of whatever resale confidence a maturing used market delivers. More supply of second-hand EVs also means more employees may consider an EV their first novated lease vehicle, rather than waiting for the market to mature.
None of this is a guarantee of outcome — residuals are set by your financier, not by us — but the directional trend is positive for anyone thinking about an EV lease in the next 12–24 months.
Common questions
Can I novate a BYD vehicle?
Yes. Most BYD passenger and SUV models that meet the eligible EV criteria are available through a novated lease. Your employer needs to have a novated lease arrangement in place — millarX can help set that up.
Does the FBT exemption still apply to BYD EVs?
As of the time of writing, eligible battery electric vehicles — including many BYD models — remain exempt from fringe benefits tax under current legislation. You should confirm the vehicle's eligibility before signing any contract, as the rules can change.
How does a growing used EV market affect my novated lease residual?
Residual values are set by the financier at the start of your lease. A deeper, more active used EV market gives financiers better data to set realistic residuals, which can reduce the gap between your agreed residual and what the car actually sells for at end of lease.
What happens to my EV at the end of a novated lease?
You typically have three options: pay out the residual and keep the car, trade it in, or refinance into a new lease. A healthier auction market for used EVs makes the trade-in and sell-down paths more predictable.
Is BYD a reputable brand for a long-term lease commitment?
BYD is the world's largest EV manufacturer by volume and has an established dealer and service network in Australia. As with any brand, it's worth checking service coverage in your area before committing to a lease term.