New EV Sales Have Plummeted, While the Used Market Is Reaching New Heights

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      Following the discontinuation of the federal EV tax rebate last fall, sales initially plummeted. However, the rising gas prices in 2026 have provided a bit of a revival—sort of. While it's true that new electric vehicle (EV) sales remain over 20% lower than the previous year, recent data from Cox Automotive shows that used EVs are experiencing a surge. In the second quarter of this year, 128,000 secondhand EVs were sold, setting a new record according to Cox data.

      To highlight this achievement, it's a 29% increase—specifically around 30,000 vehicles more—compared to Q2 2025. The average price for a used EV currently hovers around $37,000, which is approximately a $3,000 premium over the average new gasoline-powered vehicle, including hybrids. This is also a recent increase; prior to this surge, most used EVs were sold for just under $35,000. The market is responding to this rising demand, and if you haven't purchased one in recent months, you still have opportunities ahead.

      “Three-year-old EVs are significantly exceeding typical seasonal trends and outperforming all other powertrains so far,” stated Mark Strand, Deputy Chief Economist at Cox, during the mid-year review. “The price according to the [Manheim Market Report] for a three-year-old EV is now approximately 14% above its week 1 value. In contrast, non-EVs of the same age peaked in the first week of March and are more closely aligning with expected seasonal patterns, increasing by 3.5% compared to week 1 prices.”

      Carlin Stiehl/Los Angeles Times via Getty Images

      The report indicates that most EVs returning to the market originated from leases, and lessees typically do not opt to buy vehicles priced above market value at the end of their lease terms. “Lenders have been gradually absorbing these valuation adjustments, aiding the wholesale market in managing the influx of used EVs,” noted an earlier report in April.

      One reason for the abundance of leases previously was a temporary loophole that classified EV leases as commercial sales. (Those who took advantage of a $0 Fiat 500e lease deal benefited from these provisions.) According to expert Sam Abuelsamid, we will continue to see vehicles from that leasing period coming back to dealerships over the next two years.

      Fortunately, while used EVs might be particularly susceptible to depreciation, it's not due to their batteries losing efficiency. Despite the common perception that testing methods might have been flawed, automakers have effectively minimized degradation as the technology has advanced. Just avoid daily DC fast charging if possible. If that's not an option, consider holding onto your hybrid or gasoline vehicle for a bit longer.

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