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World Economy
Apr 06, 2026

Australian fuel crunch pushes used electric car prices higher – Tesla Model Y climbs over 6% in March

AI Summary
Rising fuel prices in Australia have sparked a sharp increase in demand for used electric vehicles, prompting dealers to raise prices – Tesla’s Model Y jumped more than 6% in late March – while diesel and petrol cars see discounts of up to 20%. Rental bookings for EVs are up 70% and EV loan volumes surged 161%, signalling a potentially lasting shift away from combustion engines.

Australia’s recent fuel squeeze is reshaping the second‑hand car market, with used electric vehicles (EVs) now commanding higher prices while traditional petrol and diesel models face steep discounts.

MotorMetrics’ live inventory data shows that dealers have lifted prices on a range of EVs, most notably a more than 6% increase for the Tesla Model Y during the final two weeks of March. Similar upward pressure is evident for the Model 3, MG4 and Polestar 2, indicating dealer confidence that new stock will settle at these elevated levels.

At the same time, the supply of used EVs is tightening, creating a classic demand‑supply imbalance that fuels price growth.

Conversely, the same data reveal that many used diesel and petrol vehicles have been slashed by as much as 20%, reflecting a rapid shift in consumer preference toward electric power as fuel costs climb.

Rental platform Turo reports a 70% jump in bookings for EVs and hybrids compared with the same period last year. Managing director Rob Chan describes the surge as a “unique wave of consumer interest” reminiscent only of the post‑pandemic “revenge travel” boom.

Australia’s EV fleet is expanding steadily; the Electric Vehicle Council estimates that over 454,000 battery‑electric and plug‑in hybrid vehicles were on the road at the end of 2025, giving EVs roughly 13% of new car purchases. Analysts expect this share to rise further as more models enter the market and charging infrastructure improves.

Economist Peter Esho warns that while oil shocks are not new, this one “could very well be one of the last”, as the current price environment makes EVs a financially sensible alternative for many drivers.

Petrol prices rose almost daily throughout March across major cities, only easing after a government fuel‑excise cut. In parallel, Commonwealth Bank data shows a 161% increase in weekly loan volume for new battery‑electric vehicles in March versus February, underscoring growing consumer financing for EVs.

Individual stories echo the broader trend. Sydney motorist Har Rai Singh, who rented several EVs through Turo to test long‑distance capability, says he now sees little reason to stick with a combustion engine, noting that “people are waiting for petrol pumps and paying over $100 to fill a tank – it doesn’t make sense any more to hold on to a combustion engine.”