Used EV Surge Could Slash Prices

Electric vehicles (EVs) are gaining traction in the automotive market, primarily due to the anticipated surge in used EV availability. This influx is expected to significantly reduce prices, making these vehicles more accessible to a broader audience.

Upcoming Increase in Used EV Supply

Data from Cox Automotive reveals that a substantial number of EV leases will be expiring over the next few years. The figures are striking:

• In 2025, leases for 123,000 EVs are set to expire.
• This number is projected to rise to 300,000 in 2026.
• By 2027, the count will double again to 600,000.
• In 2028, approximately 660,000 leases will end.

This trend suggests that over one million used electric vehicles could enter the market within the next few years, enhancing the availability of these cars substantially.

The Market Dynamics of Used vs. New EVs

In the United States, used cars dominate sales, accounting for about 76 percent of total vehicle sales as of 2024, as reported by Consumer Affairs. This preference is largely attributed to affordability.

The report also indicated that the average cost of new vehicles was $46,992, while used vehicles averaged at just $27,113. This price gap is particularly important for EVs, which traditionally come with a higher price tag.

Significant Discounts on Used EVs

For instance, AutoNation, a prominent automotive dealership, is advertising a 2023 Hyundai Ioniq 5 SUV for just $28,000. This vehicle, with only 18,000 miles driven, was initially listed at $58,000 three years ago when new. Such discounts exemplify the changing landscape of used EV pricing.

Future Sales Trends for New EVs

Despite the positive outlook for used EV availability, there’s concern about the broader market trends. Sales and leases of new EVs saw a significant decline of 36 percent year-over-year from late 2024 to late 2025. This downward trend continued into the first quarter of 2026.

As the electric vehicle market evolves, the increasing supply of used EVs could reshape consumer purchasing decisions and ultimately lower prices. However, it remains crucial to monitor ongoing sales trends in the new EV sector.