Image Courtesy: Chevrolet
Sales of used electric vehicles in the United States increased significantly in the first quarter of 2026, while new EV sales declined during the same period. The trend highlights a shift in consumer behavior as pricing dynamics and policy changes reshape the electric vehicle market.
Data from Cox Automotive shows that approximately 93,500 used EVs were sold in Q1 2026, marking a 12 percent increase from the same period in 2025 and a 17 percent rise compared to the previous quarter. In contrast, new EV sales fell to around 212,600 units, representing a 28 percent year-over-year decline, according to the report.
One of the primary factors influencing this shift is the expiration of the federal $7,500 tax credit for new electric vehicles. The removal of this incentive has increased the effective purchase price for new EV buyers, reducing demand in a market already facing higher vehicle costs.
At the same time, depreciation trends are making used EVs more accessible. Electric vehicles typically lose value faster than internal combustion engine vehicles, lowering their resale prices. As a result, a growing share of used EVs is now available at more affordable price points. Cox Automotive data indicates that about 44 percent of used EV transactions in early 2026 were priced below $25,000.
This pricing shift is narrowing the gap between electric and conventional vehicles in the used market. In some cases, used EVs are priced within approximately $1,300 of comparable gasoline-powered cars, making them more competitive for cost-conscious buyers.
Courtesy: Cox Automotive
Supply factors are also contributing to the increase in used EV availability. A wave of lease returns is entering the market, particularly from vehicles leased between 2023 and 2025. Analysts expect monthly lease returns to reach approximately 240,000 vehicles over the coming year, with electric models accounting for a notable share of that volume.
Additional economic conditions are reinforcing the trend. Rising prices for new vehicles and higher fuel costs are influencing purchasing decisions, leading some consumers to consider used EVs as a more economical alternative. Analysts note that many buyers who may have considered purchasing new EVs are instead opting for relatively recent used models at lower price points.
The average used EV currently sold falls within the $20,000 to $30,000 range and is typically a 2022 model with around 33,000 miles. Comparable used gasoline vehicles in the same price range tend to be older and have higher mileage, which may further influence buyer preferences.
The divergence between new and used EV sales reflects a transitional phase in the broader electric vehicle market. While adoption continues, affordability and incentives appear to be playing a larger role in shaping demand patterns.
