The expiration of federal EV tax breaks last fall caused sales to decline sharply, but rising gas prices in 2026 have given them a tailwind. Because, it’s true that according to the latest data, new EVs are still declining by more than 20% year-on-year. Cox AutomotiveUsed EVs are experiencing a moment. 128,000 secondhand EVs found homes in the second quarter of this year, which is a new record. cox Figures.
To put this in perspective, this is 29% more than in Q2 2025 – and notably about 30,000 cars more. The average price of a used EV is about $37,000, which is a $3,000 premium compared to the typical new gas-powered vehicle, including hybrids. This is actually a recent surge as well, as prior to this surge, most used EVs went for just under $35,000. The market is responding to demand, although if you haven’t bought one in the last few months, you’ve definitely missed the boat yet.
“On average, three-year-old EVs are bucking normal seasonal trends and outperforming all other powertrains to date,” said Mark Strand. Cox’s the deputy chief economist said during the group’s mid-year review. “(Mannheim Market Report The price of a three-year-old EV is now about 14% higher than its value the week before. By comparison, non-EVs of the same age peaked around the first week of March and are more closely following expected seasonality at 3.5% higher than Week 1 values.
The report said most EVs re-entering the market came off lease, and lessees are unlikely to purchase vehicles priced above market value at the end of their terms. “Lenders are gradually absorbing these valuation adjustments, helping the wholesale market digest the growth in used EVs.” a prior report Said in April.
One reason there were so many leases eligible for EV leases in the first place was a short-term loophole that classified them as commercial sales. (Anyone who jumped on that $0 Fiat 500e lease deal has such provisions to thank.) And we’ll see vehicles from that era of leasing keep coming back to dealer lots over the next two years, according to expert Sam Abuelsamid, who told us about the trend in February.
Fortunately, while used EVs can be particularly sensitive to depreciation, this is not the case due to their batteries losing efficacy. Once you get past the possibility that we’re testing them incorrectly, the fact is that automakers have done a pretty good job of minimizing degradation as the technology has matured. If you can help it, just don’t fast charge DC every day. If you can’t, maybe put that hybrid or gas car on hold for a while.
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