Fast Facts:
- Falling Prices: Used EV prices dropped significantly in 2025, making them much more accessible.
- Increased Inventory: A wave of new EVs from previous years, especially off-lease models, is entering the used market.
- Tax Credits: The $4,000 federal tax credit for used EVs (under $25k) spurred sales before its late 2025 expiration, creating a buying rush.
- Buyer Interest: Searches for used EVs nearly doubled as prices fell, showing strong consumer demand.
Why Used EVs Took Off in 2025
The used EV market is surging and key factors driving the surge includes the fact that used EV prices are dropping, making them more accessible for buyers, increased inventory of good used electric vehicles and strong buyer interest.
By the end of 2025, the average price for a used EV had dropped by 40 percent, spiking sales. Another factor included increased new model supply from leased vehicles that became available for purchase. Auto industry experts are predicting continued growth for new and used hybrids and electric cars even suggesting that EVs will soon have prices on par with gasoline cars and trucks.
What this Means for Used EV Buyers
Used EVs still carry an eight year or 150,000-mile warranty on electric battery components and the used market now includes more makes and models of quality EVs for purchase at reasonable prices. After a few years on the road, today’s used EVs are proving to be extremely reliable, requiring far less maintenance, service, and repairs than conventional gasoline powered cars.
The used EV market in 2026 is poised for significant growth, becoming the "year of the used EV" as a surge of off-lease vehicles floods the market, creating more affordable options for buyers amidst economic caution, with strong supply expected from lease returns driving down prices.
The surge in used EV demand mirrors broader electrification trends seen across the industry, including how hybrids and electrified vehicles claimed more market share in 2025 ➜
This influx of returned EVs, combined with improving technology and potentially lower loan rates, makes 2026 a prime opportunity for consumers seeking budget-friendly electric vehicles, with significant price drops and increased selection.
A major wave of EV lease returns (potentially over 300,000) is expected in 2026, boosting inventory significantly compared to 2025. This year consumers are shifting to the used market for better value, making used EVs more attractive. Vehicle depreciation is also driving down prices, creating attractive bargains.
Growing confidence in battery health and charging infrastructure as well as decreasing battery costs is making used EVs more appealing for many. In fact, used EVs offer a strong entry point for buyers who are ready to make the switch to electrified travel.
In summary, GreenCars thinks 2026 will mark a turning point where high-volume EV leasing in prior years translates into abundant, more affordable used inventory, making it the year for savvy buyers to enter the EV market.
Shop for new hybrid and electric vehicles at GreenCars Marketplace or look for quality used vehicles at driveway.com
⚡ 2025 Electrification Signals
Hybrid Vehicles Claim Bigger Market Share in 2025
Why hybrids gained momentum alongside EVs as buyers sought affordability and flexibility
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Half of Toyota Sales in 2025 Are Electrified
How one automaker’s electrification push reflects shifting buyer priorities
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What Are 2025’s Most Satisfying EVs to Own?
Owner satisfaction data that helps explain growing confidence in used EVs
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