New Zealand’s automotive industry is undergoing a major transformation, with electric vehicles (EVs) becoming increasingly popular. While new EV sales have been rising steadily, an equally interesting trend is happening in the used car market. More Kiwis are opting for pre-owned electric vehicles than ever before. Between mid-2022 and mid-2023, 39% of all light vehicles registered in New Zealand were used imports. However, among EV buyers, only 16% chose used imports, predominantly the Nissan Leaf.
In December 2024, 959 fully electric light vehicles (BEVs) were registered in New Zealand, marking the highest monthly percentage of new light vehicle registrations for BEVs in 2024. The Tesla Model Y emerged as the most popular electric car in December and for the entire year.
So, what’s driving this shift towards used EVs, and what does it mean for the automotive industry? Let’s take a closer look.
Why Are More Kiwis Buying Used EVs?
1. Affordability
New EVs can be expensive, but as more models enter the market, used EVs have become more affordable. Depreciation is often steep for new EVs, making second-hand models a great bargain for budget-conscious buyers.
2. Greater Availability
As early adopters upgrade to newer models, a wider selection of pre-owned EVs is now available. This increased inventory gives buyers more options to find an EV that suits their needs.
3. Lower Running Costs
EVs are known for their lower operating costs. With fewer moving parts than internal combustion engine (ICE) vehicles, EVs require less maintenance. Additionally, electricity is generally cheaper than petrol or diesel, making used EVs a cost-effective choice in the long run.
4. Government Incentives
The New Zealand government has provided various incentives to encourage EV adoption, such as the Clean Car Discount (which is set to phase out in 2024). Many regions also offer reduced road user charges and other benefits, making used EVs even more appealing.
5. Improved Charging Infrastructure
One of the biggest concerns for EV buyers has been charging availability. However, New Zealand’s charging network has expanded significantly, making EV ownership more convenient, even for those buying older models.
Challenges of Buying a Used EV
While used EVs offer many advantages, there are some considerations buyers should keep in mind:
- Battery Health: The longevity of an EV’s battery depends on factors such as usage and charging habits. Buyers should check the battery’s remaining capacity before purchasing.
- Warranty Coverage: Some manufacturers offer extended warranties on EV batteries, but it’s essential to verify what is still covered.
- Charging Compatibility: Older EVs may not be compatible with newer fast-charging stations, so it’s important to research charging capabilities before buying.
What This Trend Means for New Zealand’s Automotive Industry
The surge in used EV sales signals a shift in consumer confidence toward electric mobility. As EV technology continues to improve and more models enter the market, the used EV sector is expected to grow even further. Dealerships and service providers are adapting by offering certified pre-owned EV programs, ensuring quality and reliability for buyers.
Moreover, as more second-hand EVs become available, the transition to electric transportation will accelerate, making sustainable mobility accessible to a broader audience in New Zealand.