Sales of used electric vehicles (EVs) in the United States are experiencing a notable increase, driven by a combination of factors including a rise in gasoline prices and a wave of off-lease vehicles returning to the market. According to estimates from Cox Automotive, first-quarter used EV sales rose by 12 percent compared to the same period last year and increased by 17 percent from the previous quarter.
This surge in used EV sales comes in stark contrast to new EV sales, which are projected to have declined by 28 percent year-on-year in the first quarter of 2026. Analysts attribute this decline to the withdrawal of a $7,500 consumer tax credit by the Trump administration in 2025. The influx of used EVs is largely due to a significant number of vehicles that were leased during the post-pandemic boom, which are now returning to the market as those leases expire.
Market Dynamics and Pricing Trends
Credit bureau Experian reports that by the end of this year, EVs are expected to represent 15 percent of all off-lease vehicles, a significant increase from 7.7 percent in the first quarter. This oversupply has led to a decrease in the average price of used EVs, which fell by 8.5 percent between February 2025 and February 2026. The price gap between used EVs and gasoline-powered vehicles has narrowed from $4,923 to $1,334.
Stephanie Valdez Streaty, director of industry insights at Cox, noted, “We’re seeing a meaningful reset in EV pricing.” This reset is likely to make used EVs more appealing to cost-conscious consumers.
Consumer Behavior and Market Shifts
Barclays analyst Dan Levy highlighted that the introduction of the $7,500 credit in 2022 allowed consumers to lease new electric models at lower monthly payments compared to traditional combustion-engine vehicles. For instance, the average monthly payment for a leased Chevrolet Blazer EV was $515, while its gasoline counterpart had an average payment of $586.
As a result, the share of EVs in the overall U.S. auto market doubled from 5.2 percent in 2021 to 7.7 percent in 2022, although it has since decreased to approximately 6.5 percent this year. This fluctuation is attributed to rising vehicle ownership costs and a competitive pricing landscape, particularly led by Tesla.
Future Outlook and Infrastructure Considerations
Despite the current challenges, interest in EVs remains. Duncan Aldred, president of GM’s North America business, noted a recent uptick in consumer interest. However, analysts caution that it is premature to determine if high gasoline prices will lead to a significant increase in new EV sales, especially given ongoing concerns about charging infrastructure.
Manufacturers like Ford and GM are planning to introduce a new generation of more affordable EVs in the coming years. In the interim, Jessica Caldwell from Edmunds suggests that consumers may be surprised by the advancements in used electric models since their last shopping experience. The ongoing development of U.S. charging infrastructure is also expected to alleviate some barriers to EV adoption.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
