Falling prices steer U.S. buyers toward used EVs

Summary

Falling prices and a wave of lease returns are driving strong demand for used electric vehicles in the United States, making the pre-owned segment a key entry point for buyers in early 2026.

ATLANTA, March 12, 2026 — Rapid price declines and growing supply from lease maturities are reshaping the U.S. used electric-vehicle market, drawing more buyers toward pre-owned models.

Data from Cox Automotive shows used EV sales reached 31,503 units in January, a 21.2% year-over-year increase. Full-year 2025 sales totaled 378,140 vehicles, according to CarEdge.

Shrinking EV price premium

Depreciation and competition have significantly narrowed the price gap between used EVs and gasoline vehicles.

In January, the premium for a used EV over a comparable internal-combustion vehicle fell to $1,376, down from $2,591 in December. Early February data suggests the gap narrowed further to roughly $1,100.

Industry analysts say used EVs are also selling faster than gasoline vehicles, with inventory tightening to about 43 days’ supply in early 2026.

Lease returns boost supply

A key driver of growth is the expected surge in off-lease vehicles. Analysts estimate EV lease maturities could more than double this year, rising from around 5% of the market in 2025 to roughly 12% in 2026.

The increase is adding a steady stream of relatively new vehicles—often three-year-old models with updated battery systems and software—to dealer inventories.

Tesla leads the segment

Tesla remains the dominant brand in the used EV market. The Tesla Model 3 and Tesla Model Y accounted for about 60.5% of used EV sales in January.

Large volumes from rental fleet sell-offs have helped keep Tesla’s average used listing price near $31,760, strengthening its position against similarly priced gasoline sedans.

Why this matters

• Affordability shift: Used EVs are becoming the main entry point for new buyers.
• Supply expansion: Lease returns are reshaping dealer inventories nationwide.
• Market transition: The narrowing price gap signals broader EV adoption momentum.

FAQs

Q1. Are used EVs cheaper than gasoline cars now?

Not yet, but the price gap has narrowed significantly to roughly $1,100–$1,376.

Q2. How many used EVs were sold recently?

The U.S. sold 378,140 used EVs in 2025, with 31,503 sold in January 2026.

Q3. Why is inventory rising?

A wave of lease expirations from earlier EV adoption cycles is increasing supply.

Q4. Which models dominate the market?

Tesla Model 3 and Model Y together account for over 60% of used EV sales.

Q5. How quickly are used EVs selling?

Dealer inventory averages about 43 days, faster than gasoline vehicles.