There are good reasons for consumers to consider buying a battery-electric vehicle right now, partly because federal tax returns are hitting bank accounts and the prospect of $4-per-gallon fuel can hit the family budget hard, especially for those with lots of soccer practices and dance lessons for kids to attend. But there might be an even better reason to consider buying a used EV: because prices are falling as lots of them are coming off lease.
As the first quarter of 2026 ended last week, we started to see the sales trends. General Motors, for instance, said the market for new EVs, which was gyrating throughout 2025 before federal tax credits ended Sept. 30, is showing early signs of stabilizing at about 6% of US auto sales.
Lots Of EVs Coming Off Lease
The first quarter of the year tends to see used car sales surge, and dealers were certainly anticipating it this year, said Mark Strand, Cox Automotive deputy chief economist, during a recent webinar recapping Q1 sales trends.
EV Sales Aren’t Great, But They’re Not As Bad As You Might Think
Some brands are still seeing growth in their electric vehicle sales, while others struggle to keep up.
“Lower taxes and higher than usual tax refunds (about $3,800 and 10% higher on average than 2025) mean more disposable income out there to activate pent-up demand,” Strand said. “So far, despite the Mideast conflict, consumers and dealers have shown up as expected both in the wholesale lanes and on the retail lots.”
While the supply of used cars in general is tight right now (with an average price of about $25,000), Strand said lots of EVs will be coming off lease over the next year or two, mainly in the higher adoption markets where they were initially leased.
“In the current environment of general affordability pressure… these units will look like a bargain to many buyers.”
–Cox Automotive Analyst Mark Strand
While sales of new EVs dropped 28% (from Q1 2025) to 212,600 units in the US, sales of used EVs ticked upward 12% to 93,500 vehicles. Higher gas prices might nudge shoppers to consider a new EV, but affordability and charging access remain the biggest barriers, said Stephanie Valdez Streaty, Cox Automotive director of industry insights. “In contrast, the used EV market continues to gain momentum,” she said.
$34,821 Average Price For Used EV
The chart above from Cox shows average transaction prices for new EVs remaining stubbornly high, at $55,300, while ATPs for internal-combustion and hybrid vehicles continue hovering at $48,768. But the trend lines are completely different in the used car market, where three years ago a used EV cost on average $50,000, compared to $34,000 for a used ICE or hybrid vehicle.
Today, that pricing gap is down dramatically to a mere $1,334, which has been the case for much of the past past two years. That reflects a $34,821 average sticker price for a used EV and $33,487 for a used ICE or hybrid vehicle.
“We’re seeing a meaningful reset in EV pricing, particularly as the gap with gas vehicles continues to narrow.”
–Cox Automotive Analyst Stephanie Valdez Streaty
Early Sales Data Shows 2026 Could Be Rough For The Auto Industry
As GM and Toyota vie for the sales crown, Ford and Hyundai are locked in a fierce battle for third place. Hybrid sales are surging.
“That affordability shift is clearly showing up in the data: 44% of used EV transactions in February were under $25,000, significantly expanding access for mainstream buyers,” Valdez Streaty said. “The broader takeaway is that pricing pressure is easing across both new and used EVs, with the most meaningful affordability gains happening in the used market – helping remove one of the biggest barriers for consumers considering an EV.”
Source: Cox Automotive
