Used EV sales spike alongside gas prices

Sales of pre-owned electric vehicles (EVs) are experiencing a significant surge in the United States, driven by the influx of models that were acquired during the pandemic and are now re-entering the market. This trend is providing potential buyers with an attractive alternative as gasoline prices continue to climb. According to estimates from Cox Automotive, used EV sales in the first quarter of the year increased by 12% compared to the same quarter last year and saw a 17% rise from the previous quarter. In contrast, new electric vehicle sales have dropped by 28% year-over-year, largely due to the withdrawal of a $7,500 consumer tax credit by the Trump administration in 2025. Analysts point to a surplus of affordable pre-owned EVs that were initially leased in the early 2020s and are now coming back to the market as those leases conclude. Data from Experian indicates that EVs will make up 15% of all off-lease vehicles by the end of this year, a notable increase from 7.7% in the first quarter. This oversupply has contributed to a decrease in the average price of used EVs, which fell by 8.5% between February 2025 and February 2026, according to Cox. This reduction has narrowed the price difference between used EVs and gasoline vehicles from $4,923 to just $1,334. "We’re witnessing a significant adjustment in EV pricing," remarked Stephanie Valdez Streaty, director of industry insights at Cox. Barclays analyst Dan Levy highlighted that since the Biden administration introduced the $7,500 credit in 2022, consumers have been able to lease new electric models with more favorable monthly payments than those for similarly priced combustion-engine vehicles. For example, in June of last year, the average monthly lease payment for a Chevrolet Blazer EV, priced at $44,600, was $515, whereas the comparable gasoline model, priced at $35,600, had an average payment of $586. The attractive lease deals have fueled a rise in EV purchases, with their share of the overall U.S. auto market doubling from 5.2% in 2021 to 10.4% in 2022, before declining to approximately 6.5% this year, as reported by Edmunds.