Used EV Prices Are Dropping Fast, and the Best Is Yet to Come

Used EV Prices Are Dropping Fast, and the Best Is Yet to Come

Cost has always been the wall between electric vehicles and mainstream America. That wall is starting to crack. A wave of off-lease EVs is flooding the used market, and prices are falling faster than most buyers expected.

The Lease Return Wave Driving Used EV Prices Down

In 2025, just 123,000 EV leases expired. That is expected to more than double to 300,000 in 2026, and double again to 600,000 in 2027 and 660,000 in 2028, according to Cox Automotive. Most leased vehicles end up entering the used market.

That math means the supply of used EVs is about to grow dramatically. More than a million used EVs could become available over the next few years, making them far more accessible. The vast majority of cars sold in the US are used, at some 76% as of 2024.

Used EV prices are dropping in 2026 faster than most forecasters predicted. Used EVs now average $34,821, within just $1,300 of the $33,487 average for used gas vehicles. The used EV-to-ICE price gap was over $10,000 as recently as early 2023.

What Buyers Are Finding in the Market Right Now

The deals are real and getting better. AutoNation, a large dealership chain, is advertising a 2023 Hyundai Ioniq 5 sport utility vehicle for $28,000. Three years ago, that car cost closer to $50,000 new.

Electric vehicles with fewer than 30,000 miles are selling for 40 to 50 per cent less than their original sticker price, even though battery and motor failures remain statistically rare.

The new EV market tells a different story. Americans purchased just 212,600 new EVs in Q1 2026, down from 296,304 in Q1 2025, a 28% decline. EV market share fell to an estimated 5.8% of total new vehicle sales. The culprit is clear: the $7,500 federal EV tax credit expired on September 30, 2025, and nothing has replaced it.

But used EV sales are moving in the opposite direction. Cox Automotive data shows 93,500 used EVs sold in Q1 2026, up 12% from 83,587 in Q1 2025. Used EV days’ supply sits at 42, just four days higher than the 38 days for combustion vehicles. That means used EVs are turning at nearly the same pace as gas cars on dealer lots.

Why This Moment May Not Last

The window for rock-bottom used EV prices dropping in 2026 may be temporary. Cox projects EV lease returns will ramp through 2028, meaning the used EV market is about to get flooded with relatively new, well-maintained vehicles.

Rising gas prices are adding another nudge. Gas prices are climbing above $4 following the Middle East conflict, pushing more consumers to consider electrified vehicles.

Battery health, charging performance, and trim content are emerging as the main drivers of used EV value, not just odometer readings. Buyers who know what to look for are finding extraordinary value.

For anyone who has been on the fence about going electric, the used EV market in 2026 may be the most compelling argument yet. The price gap has nearly closed, the supply is growing, and the technology is only getting better.