Used Electric Vehicles Expected to Flood Market, Driving Prices Down
One of the main barriers to the widespread adoption of electric cars has been their high cost. However, a significant shift is on the horizon as a surge of used electric vehicles is set to hit the market over the next few years. According to Cox Automotive, the number of leased EVs expiring is projected to more than double from 123,000 in 2025 to 300,000 in 2026, and then double again to 600,000 in 2027 and 660,000 in 2028.
As most leased vehicles typically end up in the used car market, this influx of over a million used EVs is expected to make electric vehicles much more accessible to consumers. In the United States, the majority of cars sold are used, accounting for 76 percent of total sales in 2024, as reported by Consumer Affairs. This trend is largely driven by the significant price difference between new and used vehicles, with the average price of a new car standing at $46,992 compared to just $27,113 for a used car.
The New York Times recently highlighted the substantial price drop that can be seen in the EV market:
AutoNation, a major dealership chain, is offering a 2023 Hyundai Ioniq 5 SUV for $28,000, with only 18,000 miles on the clock. This vehicle, loaded with features such as all-wheel drive and a panoramic roof, was originally listed at $58,000 three years ago.
While new electric cars typically come with a higher price tag compared to traditional gas-powered vehicles, the used market is leveling the playing field in terms of pricing. However, this surplus of affordable EVs may not last indefinitely. According to the New York Times, sales and leases of new electric vehicles experienced a 36 percent decline from the end of 2024 to the end of 2025, with further decreases seen in the first quarter of 2026.
As the landscape of the electric vehicle market continues to evolve, the influx of used EVs presents a unique opportunity for consumers to transition to cleaner, more sustainable transportation options at a fraction of the cost. Stay tuned for more updates on the changing dynamics of the automotive industry.