Electric vehicles have been on a bit of a roller coaster ride in America over the last decade. The EV market began its growth in the 2010s, first with low-range compliance cars, before the doors were broken down by Tesla and other brands with longer-range, more powerful, and more feature-laden EVs that won over buyers. By the early 2020s, automakers across the board had jumped on the EV train, with aggressive plans to convert their lineups to battery power. But lately, automakers have backed off those ambitious plans as they face billions of dollars in EV losses, lower consumer demand, and a less EV-friendly regulatory environment.
Where exactly the electric vehicle industry goes from here remains to be seen, but one thing that’s certain is that hundreds of thousands of used EVs are about to hit the secondhand market, with some analysts forecasting a new era for used car bargains – at least for those who are open to a used electric vehicle.
An explosion in used EV inventory presents an interesting scenario for car buyers, because many of the barriers that might keep someone from dropping big money on a new EV are more acceptable when talking about used EVs. Likewise, given their historically higher depreciation rates, these lightly used EVs are likely to be substantially less expensive than comparable gasoline-powered vehicles.
Supply goes up, prices go down
Leasing has long been a popular option for EVs, namely because it allowed buyers to take advantage of now-expired tax credits and rebates, while also protecting buyers from the high rates of depreciation that come with electric vehicles, which is driven by their rapidly advancing technology and perceived obsolescence compared to newer models.
With EV leases taking off in the first few years of the decade, we are now seeing a big jump in off-lease, low-mileage cars coming onto the market as buyers return them. In 2026 alone, more than 300,000 off-lease EVs will be returned, with even more to come in the following years. While data suggests a good portion of these original EV lessees may not be returning to electric vehicles, their old cars will be quickly turned around and readied for new owners on the used market, most of them at affordable prices.
Given the original terms at which they were leased, most of these EVs should still be in nearly-new condition and have low mileage on them. The hope is that this large bump in used EV inventory will help stem some of the affordability crisis that’s been plaguing car buyers for several years on both the new and used markets. This is, of course, provided that car buyers are open to secondhand EVs over their internal combustion counterparts — and for EV-skeptical buyers, these lower-than-normal prices could help get them off the fence.
Is now the perfect time for a used EV?
There are lots of reasons why electric vehicles haven’t taken off the way some automakers were hoping they would a few years ago. Two of the biggest barriers have been high purchase prices and a lack of driving range. However, as a used vehicle priced at a mere fraction of its original MSRP, an EV can suddenly become a lot more sensible, especially if it’s not the only vehicle in a given household.
An older EV with a real-world driving range of 150 or 200 miles may not be ideal for long road trips or irregular driving scenarios, but as a dedicated suburban commuter vehicle or something only used for local driving, a cheap EV could be perfect. As far as things like performance and amenities go, these EVs could also provide great value compared to popular used gasoline vehicles with their stubbornly high prices. Throw in the current high prices of gasoline, and we might have the perfect timing for a used EV boom.
The faster-than-normal depreciation rate of electric vehicles is something that’s well known at this point, and while this has long been a disadvantage for new-EV buyers, the flip side is that used buyers can benefit from this in a big way. With an increased supply of used EVs coming to the market in the coming months and years, it seems that savings potential may only increase.
