The cost of fuel has been increasing and shows no sign of slowing down any time soon. Prices across Australian capital cities averaged around $1.85 to $2.10 per litre in early 2026, with regional drivers paying even more. At the same time, the number of EV chargers across the country is growing steadily, and there are now more than 160 electric vehicle models available in Australia, compared to just 56 in 2022.
If you’ve been in the market for a new car or have been considering selling/upgrading to a newer petrol model but have been confused with the Fuel Vs Electric car then there has not been a better time to take a closer look at the numbers.
Whether now is the right time to sell/switch depends on how you drive, where you live, and what your car is currently worth. The answer is different for everyone, but there are some clear signals that point in one direction or the other. Here is how to think it through.
Why More Drivers Are Switching From Petrol to Electric
The numbers are starting to stack up for EVs. Electric vehicles now account for around 13.1% of new car sales in Australia in 2025, up from less than 9.6% in 2024. As of June 2025, almost 370,000 passenger EVs were estimated to be on the road and in September, the number went past 410,000 (State of EVs 2025). Most of that growth comes down to three things: fuel savings, lower maintenance costs, and government incentives.
Fuel Savings
On fuel alone, the difference is significant. A typical petrol car using 8 litres per 100km at $2 per litre costs around 16 cents per kilometre. Most EVs, charged at home on a standard tariff, cost $15–$30 for a full home charge ($4–$8 per 100km), which translates to a cost of 4-8 cents per kilometre. Over 15,000km per year, that gap translates to roughly $1,770 in fuel savings annually. If you have rooftop solar and charge during the day, the cost per kilometre drops further still, sometimes to near zero.
Maintenance Costs
Maintenance is cheaper too. EVs have fewer moving parts, no oil changes, and reduced brake wear thanks to regenerative braking. Research from the Electric Vehicle Council puts EV maintenance at around 2 cents per kilometre, compared to 7 cents for a petrol car. Across 15,000km, that adds another $750 in savings each year.
Government Incentives
On the incentives side, the federal government’s Fringe Benefits Tax (FBT) exemption remains in place for eligible battery electric vehicles provided through a novated lease. On a $50,000 EV, this can save up to $9,000 per year in tax. Several states also offer reduced stamp duty and registration concessions.
In NSW, the 2026 Electric Vehicle Strategy commits $100 million in funding, with a target of more than 50% of new car sales being electric by 2030-31, and aims to make NSW the easiest place in Australia to own an EV.
These incentives will not last forever, though. The government is currently reviewing the FBT exemption, with a decision expected by mid-2027, so there is a real argument for acting sooner rather than later if a novated lease is available to you.
When Does It Make Sense to Sell Your Petrol Car?
There are three situations where switching now makes clear financial sense.
- You drive a lot: If you cover 15,000km or more per year, the fuel and maintenance savings from an EV add up quickly. The more kilometres you put on, the faster you recover any difference in purchase price.
- A major repair or service is coming up: Timing belt replacements, gearbox work, and major scheduled services can cost several thousand dollars. If your car is due for significant work, it is worth comparing that cost against the current value of your car and what a switch to an EV would actually cost you.
- Your petrol car’s resale value is likely to fall: Older, higher-emission vehicles are gradually losing buyer demand as the EV market grows. If your car is a few years old and not particularly fuel-efficient, you may hold its value better by selling now rather than waiting two or three years.
When Are You Better Off Waiting?
Switching from a petrol car to an EV can make less sense in a few specific situations.
- If you have low annual mileage: If your annual mileage is under 10,000km, the fuel savings are smaller and take longer to offset any changeover costs. The financial case for switching is weaker at lower mileage.
- If you live somewhere with limited charging access or infrastructure: EV ownership works best when you can charge at home overnight. If you live in a rural or regional area with fewer public chargers and no off-street parking, the day-to-day practicality of an EV is harder to manage.
- If you recently bought your current car: If your petrol car is new or nearly new and you would be selling at a loss, it usually makes more sense to hold it until you recover more of its value. Switching early can mean crystallising a loss you did not need to take.
What Is Your Petrol Car Worth Right Now?
If you are leaning toward selling, the next step is understanding what your car is actually worth in today’s market. That figure is not fixed; it shifts depending on where you are, what you are driving, and the condition it is in.
- Where you live (city, state) – Demand for used petrol cars is generally stronger in regional areas than in major cities, where buyer preferences are shifting toward EVs more quickly. If you are in Sydney or Melbourne, the market for older petrol vehicles is changing faster.
- The age and condition of your vehicle – A well-maintained car under five years old with reasonable mileage will hold its value better than a high-kilometre or older model. Condition and service history matter too.
- The make and model of your car– Larger petrol SUVs and utes still command strong demand in many parts of Australia. Smaller, older city cars are under more price pressure as cheaper EV alternatives enter the market.
- Fuel efficiency – Australia’s New Vehicle Efficiency Standard is changing what buyers want. Cars that use a lot of fuel are harder to sell at good prices. If your car consumes more fuel than average, keep this in mind when you set your expectations.
If you are not sure what your car is worth right now, CarBuyers can give you a free quote based on your vehicle’s details. It is a quick way to understand what you are actually working with before you make any decisions.
Is Now the Right Time for You to Sell?
If you drive regularly, have a costly service or repair due, and can charge at home, switching from petrol to electric makes strong financial sense right now. The running cost gap between petrol and EVs is real, and the FBT exemption adds further value for those who can access it through a novated lease.
If you drive infrequently, live in an area with limited charging infrastructure, or bought your car recently, you are likely better off holding on for now and revisiting the decision in a year or two.
Either way, knowing what your current car is worth is a good place to start. A free valuation from CarBuyers takes a few minutes and gives you a clear picture of where you stand.
