Used EV sales spike alongside gas prices

Sales of used electric vehicles are surging in the US as models bought during a post-pandemic boom flood back onto the market, offering prospective buyers relief from a sharp rise in petrol prices.

First-quarter used EV sales rose 12 percent compared with the same period last year and 17 percent on the previous quarter, according to Cox Automotive estimates. Sales of new EVs in the first quarter are estimated to have slumped by 28 percent year on year following the Trump administration’s withdrawal in 2025 of a $7,500 consumer tax credit.

Analysts attribute the surge to a glut of hundreds of thousands of cheap pre-owned EVs that were purchased on leases in the early 2020s and which are now returning to market as those leases expire. According to credit bureau Experian, EVs will account for 15 percent of all off-lease vehicles at the end of this year, up from 7.7 percent in the first quarter.

The supply glut helped drive the average price of a used EV down by 8.5 percent between February 2025 and February 2026, according to Cox, closing the average price gap between used EVs and used petrol-powered vehicles from $4,923 to $1,334.

“We’re seeing a meaningful reset in EV pricing,” said Stephanie Valdez Streaty, Cox’s director of industry insights.

Credit: Financial Times Credit: Financial Times

Barclays analyst Dan Levy said that following the Biden administration’s introduction of the $7,500 credit in 2022, buyers were able to access new electric models on leases with lower monthly payments than for less expensive combustion-engine models.

He noted in June last year the average monthly payment for a leased Chevrolet Blazer EV, which had a base price of $44,600, was $515, compared with an average payment of $586 for its petrol-powered equivalent, which had a base price of $35,600.

The lease deals powered a surge in EV purchases, with their share of the overall US auto market doubling to 5.2 percent between 2021 and 2022 and rising to 7.7 percent in 2024, according to Edmunds, before falling back to around 6.5 percent this year.