But hybrid vehicles, rather than electric models, are proving to be in highest demand and the most resistant to price reductions.
The Australian Automotive Dealer Association and AutoGrab revealed the trends on Tuesday in used car sales figures from May, which also showed the automotive market had bounced back from a sales dip in April.
The news comes one week after new hybrid and electric vehicles sales broke records to represent almost half of all new cars sold in Australia during the month.
The latest sales report showed Australian drivers bought 221,323 second-hand vehicles during May – a rise of more than 17,700 cars compared to April.
Standard hybrid vehicles made up one in 10 used cars up to five years of age, while electric and plug-in hybrid models represented six per cent of sales.
The trend towards low-emission cars reflected consumer efforts to avoid petrol and diesel price rises caused by conflict in the Middle East, association chief executive James Voortman said.
"It's no surprise to see hybrids performing so strongly," he said.
"With household budgets still under pressure, many consumers are looking for ways to reduce fuel costs and hybrids offer a practical and proven solution."
Hybrid cars were also the most likely to withstand discounting to secure a sale, the report found, and retained 93.4 per cent of their value.
By contrast, more than half of second-hand petrol and diesel vehicles were discounted before finding a buyer in May, which Mr Voortman said showed consumers were in the driver's seat.
"The increase in discounting reflects a strong level of competition in the used vehicle market at the moment," he said.
"Buyers are in a good position to compare options and negotiate on price."
The report came on the same day BYD Australia revealed it had signed a three-year deal with Pickles to auction its second-hand fleet vehicles.
The agreement was another sign that Australia's used electric vehicle market had evolved, Pickles motor vehicles general manager Chris Shaw said, and the move would make them accessible to a wider motoring audience
"We're seeing increased confidence in used electric vehicles from both private buyers and the trade as the market develops, pricing becomes more accessible, and understanding of EV ownership continues to improve," he said.
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