Sales of used electric vehicles in the US jumped 12 percent in the first quarter compared to last year, driven by a flood of off-lease models and petrol prices topping $4 a gallon. New EV sales fell 28 percent year-on-year after the loss of a federal tax credit. Analysts say cheaper used EVs could draw more buyers into electrification.
First-quarter used EV sales rose 12 percent from the same period in 2025 and 17 percent from the prior quarter, according to Cox Automotive estimates. In contrast, new EV sales dropped 28 percent year-on-year, following the Trump administration's 2025 withdrawal of the $7,500 consumer tax credit. Petrol prices surpassed $4 per gallon this week for the first time since 2022, amid high new car prices nearing records and affordability worries slowing the overall market. Cox Automotive data showed the average used EV price fell 8.5 percent from February 2025 to February 2026, narrowing the gap with used petrol cars to $1,334 from $4,923. Stephanie Valdez Streaty, Cox’s director of industry insights, described this as “a meaningful reset in EV pricing.” The surge stems from leases signed in the early 2020s now expiring, flooding the market with affordable pre-owned EVs. Experian forecasts EVs will make up 15 percent of off-lease vehicles by year-end, up from 7.7 percent in the first quarter. Barclays analyst Dan Levy noted that past lease deals, boosted by the Biden-era credit, made EVs cheaper monthly than some petrol rivals—like $515 for a Chevrolet Blazer EV versus $586 for its gas version. Edmunds data shows EV market share peaked at 7.7 percent in 2024 before easing to 6.5 percent this year, fueled partly by Tesla's price cuts that also eroded used values. Jessica Caldwell, head of insights at Edmunds, predicted discounted used EVs would serve as a “gateway” to ownership amid high fuel costs. GM North America president Duncan Aldred reported “some peaking of interest” in EVs last month. However, analysts caution that range anxiety and sparse charging persist, though Ford and GM plan cheaper models soon. Mike Murphy of EVs For All America said charging infrastructure accelerated last year, adding, “The dream of mass EV adoption here in America is not dead yet.”
