New EV sales have plummeted, whereas the used market is achieving record levels.

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      The conclusion of the federal EV tax rebate last fall quickly led to a decline in sales, but rising gas prices in 2026 have provided a bit of a resurgence—sort of. While it's accurate that new EV sales are still down over 20% compared to last year, according to fresh data from Cox Automotive, used EVs are experiencing a surge. In the second quarter of this year, 128,000 pre-owned EVs were sold, marking a new record according to Cox's statistics.

      To offer some context, that's a 29% increase—or about 30,000 more vehicles—compared to Q2 2025. The average price for a used EV is roughly $37,000, which is about a $3,000 premium over the average new gasoline-powered vehicle, including hybrids. This represents a recent increase, as prior to this surge, most used EVs sold for just below $35,000. The market responds to demand, and if you haven't purchased one recently, you definitely haven't lost your chance.

      "On average, three-year-old EVs are significantly exceeding the typical seasonal trends and outperforming all other powertrains so far this year," said Mark Strand, Deputy Chief Economist at Cox, in the group’s mid-year review. “The price in the Manheim Market Report for a three-year-old EV is now approximately 14% above its value from the first week. In contrast, non-EVs of the same age peaked in early March and are aligning more closely with seasonal expectations, having increased by 3.5% compared to values from week one.”

      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 buy cars priced above market value at the end of their lease terms. "Lenders have gradually absorbed these valuation adjustments, aiding the wholesale market in accommodating the increase in used EVs," an earlier April report noted.

      One reason for the high number of leases initially was a temporary loophole that classified EV leases as commercial sales. (Anyone who took advantage of a $0 Fiat 500e lease deal has this provision to thank.) Experts like Sam Abuelsamid anticipate that vehicles from that leasing period will continue to return to dealership lots over the next two years.

      Fortunately, while used EVs may face significant depreciation, this isn't due to the batteries losing effectiveness. Once you get past the assumption that we've been testing them incorrectly, it becomes clear that auto manufacturers have effectively reduced degradation as the technology has developed. Just try not to use DC fast charging daily if possible. If you can't, consider keeping your hybrid or gasoline vehicle a little longer.

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