Used Electric-Vehicle Sales Climb As New EV Orders Retreat

Consumers Finding Cheaper Pre-Owned EVs As Lease Returns Flood The Market

Used electric vehicles are selling faster even as purchases of new EVs slump, industry data show. New EV registrations plunged by nearly three in 10 from a year earlier after the federal $7,500 purchase credit was removed, according to Cox Automotive. Meanwhile, used-EV transactions rose by about one in eight year over year and jumped roughly one in six from the previous quarter.

Rising pump prices — the national average is above $4 a gallon — have nudged shoppers toward electrified options. But a larger force is the wave of lease returns from the early 2020s. Leases were widely used when automakers pushed electrified models, and now many of those vehicles are reappearing on lots. An analysis in the Financial Times projects EVs will make up about one in seven off-lease vehicles by year-end, roughly double their share from earlier this year.

The surge in supply has softened used-EV prices and closed the gap with gasoline-powered cars. Cox Automotive reports the typical pre-owned EV now sells for about $34,800, roughly $1,300 more than the average internal-combustion used car — a margin small enough that value-conscious buyers are taking notice. Dealers say increasing inventory has given shoppers more negotiating power.

Industry observers say the shift is changing the customer mix. A senior analyst at a national vehicle consultancy noted that lower-priced used EVs are bringing buyers into the market who had previously been priced out, though many are still wary about battery degradation and long-term service costs. Warranties and certified pre-owned programs are becoming a selling point for dealers trying to overcome those concerns.

The split between new and used markets may reshape manufacturer and retail strategies. Automakers could rethink lease terms and incentives to manage the coming tide of returns, while independent sellers and fleet operators prepare for higher resale volumes. For now, more affordable secondhand EVs appear likely to accelerate adoption among mainstream buyers, even as new-vehicle demand adjusts to policy and price changes.