$40,000 is the sweet spot of the Australian used EV market right now. This is where the bargains live: cars that sold new for $60k to $80k two or three years ago, now hitting prices that finally make sense against a comparable petrol Toyota or Mazda. You could fill a page with every EV under $40k. We’ve kept it to the best used EVs under $40,000 in Australia: the six we’d spend our own money on.
The market in 2026: why now is the time
Used EV prices in Australia have fallen sharply over the last 18 months. Anyone who bought in 2022 or 2023 paid a serious EV premium, and those cars are now flooding the used market as three-year leases end and early adopters trade up. The BYD Atto 3 alone has dropped from a $51,500 median used price to around $36,990 in just two years.
That’s bad news if you bought new and excellent news if you’re shopping now. There are also twelve new EVs under $40,000 in 2026, which keeps the pressure on used prices.
If your budget is tighter, see our guide to the best used EVs under $30,000. Otherwise, here are the six picks worth chasing between $30k and $40k.
1. Tesla Model 3 (2019 to 2021 SR+): $25,000 to $35,000
The Model 3 is the most-listed used EV in Australia by a wide margin (around 7,800 active listings as of mid-2026), so you can afford to be picky. Aim for a 2020 or 2021 Standard Range Plus with under 80,000 km. The 2019 imports work but come with more software quirks.
The appeal: running costs are low, Supercharger access is strong, the software still gets updates, and battery degradation has been better than feared. The catches: panel gaps, MCU issues on older units, and a brutal ride if you skip the inspection.
Read our full used Tesla Model 3 buyer’s guide for the year-by-year breakdown.
2. Hyundai Kona Electric (2020 to 2022): $25,000 to $33,000
The most underrated used EV on the Australian market. The 64kWh long-range version did 449km WLTP from new, has a 7-year unlimited-km warranty (transferable, but check the gap), and avoided the early Tesla quality issues. There’s a 39kWh version too, but skip it. The range hit isn’t worth the small saving.
What to inspect: the LG-cell battery in pre-2021 cars was subject to a global recall over fire risk, so verify the recall has been completed (a Hyundai dealer can confirm). Otherwise these have aged exceptionally well.
3. BYD Atto 3 (2022 to 2023): $30,000 to $37,000
The BYD that started Australia’s BYD wave. Early Atto 3s are now at the bottom of their depreciation curve. The Blade LFP battery is the standout feature: a chemistry that’s resistant to thermal runaway and known to age well. The 420km WLTP range from the Extended model is genuine.
What to check: warranty transfer (it still works through EVDirect dealers, but get it confirmed in writing), the rotating screen for any glitches, and whether over-the-air software updates have actually been applied. Read our used BYD Atto 3 buyer’s guide for the deeper inspection list.
4. Polestar 2 (2021 to 2022 entry-level): $32,000 to $39,000
Bargain of the segment if you don’t mind a Volvo by another name. The Polestar 2 is depreciating faster than rivals, around 60% over five years, which means cars that cost $65k to $75k new in 2021 are now hitting the used market in the mid $30s. The single-motor long-range version is the pick: 450km WLTP, a well-built Scandinavian interior, and Google Android Automotive infotainment that genuinely works.
What to check: the early cars had charging-control software issues (covered by a recall, so verify it’s been done), and the LG battery cells used the same chemistry as the Kona, so confirm the recall status there too.
5. Tesla Model Y (2022 to 2023 RWD): $35,000 to $40,000
Just sneaks into the budget. Early Model Y RWDs from China-built 2022 and 2023 stock are now landing in the high $30s. You get SUV practicality, more boot space than a Toyota RAV4, and the same drivetrain as the Model 3. If you want one car that does family duty and weekend road trips, this is the one. Just confirm the build year and origin, because some early units were US-built and have different fit and finish.
6. Hyundai Ioniq 5 (2022 base RWD): $38,000 to $42,000
The price-stretcher. Genuine 2022 base-model Ioniq 5s in lower spec are starting to appear at or just above $40k. If you can stretch, do it. This car drives like nothing else in the segment, has V2L power output you’ll actually use, and supports ultra-fast 350kW charging when you find a charger that can deliver it. See our used Hyundai Ioniq 5 buyer’s guide for the ICCU issue you absolutely need to ask about.
What we’re not recommending (and why)
MG ZS EV (pre-facelift): Cheap on paper. Slow real-world charging, modest range, build quality concerns. The facelifted version is fine but not under $40k used yet. Our used MG ZS EV guide covers what to inspect if you go this way anyway.
Nissan Leaf (any): Even at sub-$25k, the air-cooled battery, CHAdeMO charging port, and limited fast-charging network make this a hard recommend in 2026. See our used Nissan Leaf guide for the (narrow) cases where it still works.
Older Renault Zoe / BMW i3: Too few service-equipped dealers in Australia, parts availability is ordinary, and battery health on the cheaper examples is uncertain. Skip.
If we had $40,000 to spend
If we had $40,000 to spend right now: 2021 Polestar 2 long-range single motor. Nothing else in this bracket matches its mix of build quality, real-world range and price. And Polestar’s faster depreciation is the buyer’s friend here, not the seller’s.
If you need an SUV, stretch for a 2022 Tesla Model Y RWD. It’s practical, well supported, and Supercharger access is still the most reliable fast-charging experience in Australia.
Whichever one you pick: get an independent battery health check before you sign. A 30-minute test from a workshop with the right OBD reader will tell you more about the car’s real value than any test drive. It’s the single most valuable $150 you’ll spend.
People also ask
Frequently asked questions
Are used EVs really cheaper to own than petrol?
Yes. Fuel and servicing savings typically pay back the up-front premium within two to three years for the average Australian driver, even on a used EV. The bigger variable is your electricity tariff and whether you can charge at home.
What’s a fair price for a 2021 Tesla Model 3 in 2026?
$28,000 to $33,000 for a Standard Range Plus with 60,000 to 90,000 km on it, depending on options and condition. An AWD Long Range commands a premium of $5k to $8k.
How much battery degradation is normal after four or five years?
5 to 10% capacity loss is typical. More than 12% on a four-year-old car warrants negotiation or walking away. A battery health certificate is increasingly available from independent testers in the major capitals.
Two costs that never show up on the windscreen. EV insurance runs well ahead of the petrol equivalent in Australia, so quote your shortlist before you fall for one. And if you are buying through work, a novated lease on a used EV can change which car you can actually afford.
