Most new cars cop a drop in value the second they roll off the lot – but these are the cars that get some of the biggest whacks from the hammer of depreciation.
Buying a new car is the second-largest purchase the average person will make in their lifetime, after buying a house. Unlike houses, cars rarely appreciate in value; instead, they feature the biggest sudden drop in value the second they roll off the dealership floor.
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Most financial advisors and insurers estimate a car’s value will depreciate by about 10 to 15 per cent the second you drive it off the lot, and then a steady 10 per cent each year following. That depreciation is accelerated for luxury cars.
However, studies have shown that electric cars depreciate much faster than other vehicles on the market.
Inside a 2024 report conducted by the Australian Automotive Dealer Association’s (AADA) Automotive Insights – electric cars, on average, lose a quarter of their value within the first year.
While the AADA attributes the steep depreciation of EVs to “aggressive OEM discounting”, with last year seeing substantial price cuts applied to major-brand EVs, there are other factors to consider – mainly that what was once a market owned by Tesla has quickly flourished into nearly 40 different makes within five short years.
That’s a lot of competition hitting very quickly, all with new features and rapidly developing technology that can often outweigh the positives of buying a used car at a marginally discounted rate.
This then causes the used market to shift and discount even further to capture those who are mostly looking at the latest new thing. It is entirely likely that this will stagnate over time, but at the moment, you can capitalise on some fantastic deals.
Here are some of the biggest discounts from new we found through the Nused Drive Marketplace.
Best deals for EVs on the used market
Some of the biggest discounts we found for EVs came from the luxury segment. While many of these sit at the pointy end of the market, they still offer some whopping deals through Drive Marketplace.
BMW i5 M60 – $100,000 saving
We found a demo-used 2025 BMW i5 M6, with only 5000km, on Drive Marketplace for just $127,990 drive away. If you were to walk into a BMW dealership today, it would cost you $215,900 plus on-road costs.
Because it exceeds the Luxury Car Tax threshold, you’re up for another $16,000 on top of that price if you were to register the car in New South Wales.
That’s a more than $100,000 saving if you’re happy with jumping into a lightly used demo model that you can’t spec to your liking.
Similarly, there are a few 2023 to 2025 models for the $130,000 to $150,000 mark, with even fewer kilometres available on Drive Marketplace.
Mercedes-Benz EQA350 – $50,000 saving
More scorching deals can be found for the Mercedes-Benz EQA350 models, most are about half-price mark for a lightly used example.
A budget of $50,000 will get you into a 2023 example drive away with just over 50,000km, a small price to pay for a car that started at $101,800 plus on-road costs (around $10,000 in on-road costs).
Furthermore, there are a handful of demo models for about $70,000 drive away, which is a $40,000 discount from new.
Polestar 3 – $55,000 saving
Moving away from the German cars, certain Polestars have been hit with some heavy depreciation.
If you were to buy a brand-new Polestar 3 Long Range Dual Motor with Performance and Plus Pack, it would cost you $154,454 plus on-road costs ($167,476 drive away in NSW).
However, Drive Marketplace has a number of 2025 demo models with less than 5000km on the odometer for as little as $112,900 drive away, which is nearly a $55,000 saving over a brand-new example. Better yet, if you opt for a 2024 model, you could jump into one with 3km on it for $104,900.
If you can sacrifice the Plus Pack (small things like audio upgrades, interior materials and massaging seats), you can drive away in one for as little as $94,900.
BMW i7 – $160,000 discount
Out of all the brands you should be keeping your eye on, BMW is number one for getting a good deal on a demo/Nused model, and its range-topping i7 is no exception.
If you want one of these, you’ll need $306,900 for an entry trim-level, and that’s before on-roads ($327,541 drive away in NSW). However, Drive Marketplace has an i7 M70 (a $367,442 drive away in NSW car) listed for just $208,990 drive away.
That’s a discount of $158,452 on a car that has only done 5000km for dealership test drives. Furthermore, there is a 2022 xDrive60 for $209,990 drive away that has done only 3950km.
BMW iX – $150,000 discount
The range-topping EV SUV from the German brand offers some of the most accessible deals on a used luxury car, with plenty available on Drive Marketplace.
Used listings start from $86,800 drive away for an xDrive40 with just 16,939km on the odometer, a car that would cost you $136,900 plus on-road costs brand new.
If you want a little more power and luxury, you can jump into a 2022 M60 for just $109,800, drive away with 26,035km on the odometer. On the flip side, that’s a $233,400 plus on-road costs when brand new.
That’s a very expensive 26,035km, depreciating nearly $150,000 in three years and after all the on-road costs are paid.
The post $150,000 discount: These EVs have nearly halved in price on the used market appeared first on Drive.
