Used EVs under $25,000 propel sales even as new models languish

By Kyle Stock, Bloomberg

Traffic may have dried up at EV dealerships after the end of federal purchase incentives, but sales of used electric cars and trucks have only accelerated.

Almost 89,000 used EVs changed hands in the last three months of 2025, up 13.5% from a year earlier, according to Cox Automotive. What’s more, the inventory of used electric machines is turning over in about 50 days, slightly faster than for gas-powered cars. By contrast, sales of new EVs fell 36% in the fourth quarter of last year.

“The buzz word for the year is ‘affordability’ for a really good reason,” said Liz Najman, director of market insights at Recurrent, which provides range estimates and other EV-centric data to car dealers and shoppers. “You can get a two or three-year-old EV for 50% off and you’re talking about something with a lot of technology and a warranty on the battery.”

For a long time the used EV market in the US was stagnant. There weren’t a lot of cars for sale and buyers worried about batteries in older models dying out. But EV batteries are proving to be more durable than expected and in the US they’re generally covered under warranty for at least eight years or 100,000 miles.

New EVs still outsell used ones by a long shot, but analysts say a mature used market will help buttress demand for new battery-powered machines. When shopping for a new car, more than 90% of EV owners choose to go electric again.

The increase in used-EV sales follows simple economics: There are finally a lot of these cars for sale and at relatively low prices. In 2023 and 2024, Americans snapped up 2.5 million electric vehicles, the majority of them under lease. These vehicles are now hitting the used market for the first time. And depreciation rates for EVs have been steep, so those seeking a bargain are increasingly landing on a battery-powered machine.

While the average price of a used electric vehicle in the US is still slightly higher than that of a pre-owned gas car, the spread has been narrowing. Almost 40% of used EVs in the recent quarter sold for less than $25,000. And of the 15 models that have seen resale values swoon the most over three years, more than half are electric vehicles, according to CarEdge.com, an AI-driven platform that helps car shoppers negotiate with dealerships.

“Used EVs are an answer to the affordability crisis in America,” said CarEdge.com analyst Justin Fischer. “You can score a really good deal for right under $20,000.”

Consider a Nissan Leaf, which travels about 150 miles on a charge and can power a house in a blackout. In the past three years, that vehicle has lost almost 70% of its value, and recently was selling for about $12,000. A Nissan Versa, a comparable gas-powered model, has retained more than 70% of its original price in the same period, selling for roughly $14,000.

While used EVs may still be slightly more expensive than gas options, they tend to be newer vehicles and in better shape. Recurrent found that when compared by list price, the electric options are, on average, one year newer and have 30,000 fewer miles than internal-combustion cars and trucks.

There’s also evidence that electric vehicles — without radiators, spark plugs or oil — may prove to be more reliable over time than gas-powered machines. A January study from the University of Michigan found the total cost of owning a used electric vehicle is drastically lower than that of any other type of car, largely because of relatively low bills for fuel and upkeep.

“That’s really the value story,” said Stephanie Valdez Streaty, director of industry insights at Cox. “You almost have price parity and then the cost to operate this vehicle is going to be less.”

She said the pace is likely to continue as bargain hunters are about to get a crack at recent EVs coming off lease for the first time, including the BMW i7, Cadillac Lyric and Tesla Cybertruck, all of which debuted three years ago.

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