Sales of used electric vehicles (EVs) rose by 12% in the first quarter of 2026 compared to the same period last year, according to a report by Cox Automotive. This growth contrasts sharply with a 28% year-over-year decline in new EV sales, following the Trump administration's removal of the $7,500 consumer tax credit.
The surge in second-hand EV demand is being driven by two key factors: rising fuel costs and a significant influx of pre-owned vehicles from expiring leases. The average price of petrol in the United States has surpassed $4 per gallon, increasing consumer interest in electric alternatives.
Lease Expirations Create Supply Boom
Hundreds of thousands of EVs are entering the used car marketplace as leases signed in the early 2020s reach their end. According to the Financial Times, EVs will constitute 15% of all off-lease vehicles by the end of 2026, doubling from 7.7% in the first quarter.
This increased supply has pushed prices down, fostering greater affordability. "The ol’ economic principle of supply-and-demand remained steadfast; the surge of pre-owned vehicles helped push prices lower, giving those sales a further boost," the report noted.
Price Parity with Combustion Engine Cars
The market shift has brought used EV prices close to those of traditional internal combustion engine vehicles. Data from Cox Automotive shows the average price of a used EV is now $34,821, compared to $33,487 for a used petrol-powered car.
This near parity is a significant milestone, making electric mobility a more financially viable option for a broader segment of consumers seeking cost-effective and efficient transportation.
The trend indicates a maturing EV ecosystem, where the secondary market begins to play a crucial role in adoption. Industry analysts suggest this flow of affordable used EVs could help sustain overall electric vehicle uptake despite headwinds in the new car sector.