In 2025, the used electric vehicle market has reached a significant milestone, with prices nearly matching those of gasoline vehicles. Average used EV prices dropped to $31,110 in May, narrowing the premium over gas models to just $897 by August. This shift, driven by falling costs and improved battery longevity, makes EVs more accessible for buyers.
The used EV market has matured dramatically in 2025, offering buyers unprecedented value. According to recent data, the average price of a used EV stood at $31,110 in May 2025, a decrease of $2,993 or 8.8% from the previous year. By August 2025, the price premium for used EVs compared to gas vehicles had narrowed to $897—the smallest gap on record. Popular models like the Tesla Model 3 averaged $23,278, the Nissan LEAF $12,890, and the Chevy Bolt $14,705, all below the market average.
Federal incentives have changed, with the EV tax credit expiring on September 30, 2025, after Republican tax legislation signed by President Trump. Previously, it offered up to $4,000 for qualifying vehicles. Buyers should check state and local programs via the Database of State Incentives for Renewable Energy (DSIRE) and consult tax professionals.
Battery health remains a key consideration, but research shows positive trends. A 2025 survey of 3,595 EV owners found that 2017-2018 models retained about 93% battery capacity, 2019-2020 models 96%, and 2021-2023 models 97%. GeoTab research indicates batteries degrade at just 1.8% per year, down from 2.3% in 2019. Stanford University studies suggest real-world battery life may last 40% longer than expected. Range can drop up to 20% in cold weather, per Consumer Reports, but the average American drives only 40 miles daily, per the Bureau of Transportation Statistics.
Warranties provide reassurance, typically lasting 8-10 years or 100,000 miles, with many transferable. Certified pre-owned programs from manufacturers like Ford, Chevrolet, Hyundai, BMW, and Nissan add extended coverage and inspections.
Total ownership costs favor EVs: owners save $6,000 to $10,000 over five years on fuel compared to gas SUVs, with maintenance second-lowest among vehicle types per AAA's 2025 analysis. Insurance averages $337 monthly ($4,043 annually), $44 more than gas vehicles, but discounts are emerging. Looking ahead, over 1.1 million leased EVs are expected to hit the market in 2026, boosting supply.