When in September 2025 the American Congress cancelled the federal tax credit for buying electric vehicles — $7,500 for new and $4,000 for used — analysts expected the market to slow down. That happened, but only with new EVs. The opposite occurred with used ones.
Numbers That Change the Picture
According to Cox Automotive, in the first quarter of 2026, the US sold 93,500 used electric vehicles — 12% more than a year ago, and 17% more than in the previous quarter. Meanwhile, new EV sales fell by 28%.
But the most important metric is not volume, but price. As Electrek reports, citing Cox Automotive, the average price of a used electric vehicle is $34,821 — only $1,334 higher than the average used gasoline-powered car. Back in early 2023, this gap exceeded $10,000.
«2026 is the year of the used electric vehicle».
Scott Case, CEO of Recurrent
In parallel, CarGurus recorded a 40% jump in views of used EV listings after gas prices crossed the $4 per gallon mark for the first time since 2022. Searches for used Tesla Model 3s increased by 52%.
Why Used EVs Suddenly Became Available
The explanation lies in the mechanics of the leasing market. Between 2023 and 2025, manufacturers actively offered EV leasing, using the so-called "leasing loophole" in the IRA law: the $7,500 credit was easier to obtain through leasing rather than direct purchase. Over 1.1 million EVs were leased during this period.
These agreements are now ending. Forecasts predict that lease returns of EVs in 2026 will grow by 230% compared to 2025, and by year-end electric vehicles will account for 15% of all returned leased vehicles — double the share at the beginning of the year.
Most lessees do not purchase their vehicles: the buyout price fixed in the contract is often higher than the current market value. Cars are returned to dealer lots and auctions — and put downward pressure on prices.
What Is Being Bought and at What Price
- Used non-Tesla EVs continue to get cheaper — prices are already 30–40% below peak 2022 levels.
- Used Teslas, conversely, have slightly increased in price (+4.3%, to $31,329) — due to reduced supply following the discontinuation of the Model S and X.
- The average time to sell a used EV at a dealership is 42 days, only 4 days longer than for a gasoline car. This is not a clearance sale from surplus — it is real demand.
According to Jeremy Robb, chief economist at Cox Automotive, the wave of leasing returns will continue to grow for at least two more years — hundreds of thousands of relatively new vehicles with low mileage will continue to enter the market.
The Paradox of Electrification
Against the backdrop of the used EV boom, new electric vehicles are losing ground. The share of BEVs in the new car market fell from 7.7% in 2024 to approximately 6.5% following the credit cancellation. Instead, hybrids are breaking records: in the fourth quarter of 2025, they accounted for 26% of new car sales, with Toyota controlling 43% of this segment.
Electrification in the US is happening — but not through new Teslas or Rivians. It is happening through two-year-old Chevy Bolts at $22,000 on a dealer lot in Ohio.
If gas prices hold above $4 through the fall, and the wave of lease returns peaks by the end of 2026 — will the used EV become a mainstream choice for the American middle class, rather than a niche purchase for technology enthusiasts?
