New EV sales have plummeted, while the used market is breaking records.

      Justin Sullivan/Getty Images

      The latest car news and reviews, no nonsense

      Subscribe to our free daily newsletter to get the most important stories delivered to your inbox every weekday.

      The conclusion of the federal EV tax rebate last fall significantly reduced sales, but rising gasoline prices in 2026 have breathed new life into the market—somewhat. While it's accurate that new EV sales are still over 20% lower year-over-year, according to recent data from Cox Automotive, used EVs are currently thriving. In the second quarter of this year, 128,000 pre-owned EVs were sold, setting a new record, as per Cox's statistics.

      To put it in context, this represents a 29% increase—approximately 30,000 more vehicles—compared to Q2 2025. The average price of a used EV is around $37,000, which is a $3,000 premium over the average new gasoline vehicle, including hybrids. This is actually a recent increase, as prior to this surge, most used EVs sold for just under $35,000. The market is responding to demand; however, if you haven’t purchased one in the last few months, there’s still time.

      "On average, three-year-old EVs are significantly outpacing the usual seasonal trends and are exceeding all other powertrains so far this year," said Mark Strand, Cox’s Deputy Chief Economist, during the mid-year review. "The [Manheim Market Report price] for a three-year-old EV is currently about 14% higher than its initial week value. In contrast, non-EVs of the same age peaked in the first week of March and are adhering more closely to expected seasonal patterns, increasing 3.5% compared to their week 1 values."

      Carlin Stiehl/Los Angeles Times via Getty Images

      The report indicates that most EVs returning to the market are coming off leases, and lessees are unlikely to purchase vehicles priced above market value at the end of their lease terms. "Lenders have gradually been adjusting to these valuation changes, aiding the wholesale market in managing the influx of used EVs," an earlier April report stated.

      The prevalence of leases was partly due to a short-lived loophole that designated EV leases as commercial sales. (Anyone who benefited from a $0 Fiat 500e lease deal can thank such provisions.) Experts, including Sam Abuelsamid, forecast that vehicles leased during that period will continue to flow back into dealerships over the next two years, a trend he previously discussed in February.

      Fortunately, even though used EVs may be particularly susceptible to depreciation, it’s not due to battery degradation. Once you consider the possibility that testing procedures may have been flawed, the truth is that automakers have significantly improved battery longevity as the technology has advanced. Just try to avoid daily DC fast charging if possible; if that's not feasible, you might consider keeping that hybrid or gas vehicle a bit longer.

      Have a tip? Contact us at tips@thedrive.com