Sales of new electric vehicles have plummeted, yet the used market is achieving record figures.

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      The conclusion of the federal EV tax rebate last fall quickly led to a drop in sales, but rising gas prices in 2026 have provided a slight resurgence—sort of. Although it's accurate that new EV sales are still down more than 20% compared to last year, based on the latest data from Cox Automotive, there has been a surge in used EV sales. During the second quarter of this year, 128,000 pre-owned EVs were sold, setting a new record according to Cox data.

      To put it in perspective, this is a 29% increase—around 30,000 cars more—compared to Q2 2025. The average price for a used EV is approximately $37,000, which is about $3,000 higher than the average new gas-powered vehicle, including hybrids. This marks a recent increase, as prior to this surge, used EVs typically sold for just under $35,000. The market is reacting to the demand, so if you haven’t purchased one recently, there's still time.

      “Three-year-old EVs are significantly outperforming the traditional seasonal trend and exceeding all other powertrains so far this year,” said Mark Strand, Deputy Chief Economist at Cox, during the group's mid-year review. “The [Manheim Market Report price] for a three-year-old EV is now roughly 14% higher than the value at the beginning of the year. In contrast, non-EVs of the same age reached their peak around early March and are adhering more closely to expected seasonal patterns, showing a 3.5% increase from the initial values.”

      Carlin Stiehl/Los Angeles Times via Getty Images

      The report highlights that most EVs reentering the market originate from leases, and lessees typically do not purchase vehicles at prices exceeding market value at the conclusion of their leases. “Lenders have slowly absorbed these valuation changes, aiding the wholesale market in managing the rise in used EVs,” an earlier report from April indicated.

      One reason there are so many leases is due to a briefly available loophole for EV leases that categorized them as commercial sales. (Anyone who took advantage of a $0 Fiat 500e lease deal benefitted from such provisions.) Experts like Sam Abuelsamid have indicated that vehicles from that leasing era will continue to appear on dealer lots over the next two years.

      Fortunately, while used EVs might be particularly susceptible to depreciation, it’s not primarily due to their batteries losing performance. Once you consider the likelihood that testing methods may have been flawed, it’s clear that manufacturers have effectively minimized degradation as the technology has improved. Just try to avoid DC fast charging every day if possible; otherwise, it might be wise to keep your hybrid or gas vehicle for a while longer.

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