In the U.S., sales of new EVs are slumping — but more used EVs are being driven off the lot than ever, per Cox Automotive data. With hundreds of thousands of battery-powered vehicles coming off leases soon, the used EV market is set to accelerate even further in the years to come.
Although Americans still buy a lot more new EVs than used ones, the Cox data shows the gap beginning to close: Used EV sales jumped by 34% in 2025, compared with the prior year, as new EV sales shrank a bit. Overall, electric models made up nearly a tenth of new vehicle sales in the U.S. in 2025, and about 2% of used car sales.
A combination of factors explains why used EVs are on the upswing while new ones are stagnant.
For one, a lot more used EVs are on the market these days than in the past. About 300,000 EVs will come off of leases this year, up from 123,000 last year, and Cox expects another 600,000 to do so in 2027. Not all of those will hit the used car market, but many will, providing a rush of inventory that helps drive down prices.
Speaking of prices, on average a used EV is now basically at price parity with a used gas car. That’s a big deal: Up-front cost is one of the main barriers preventing people from buying battery-powered vehicles, which are typically cheaper to drive and maintain but have long been more expensive than similar gas-fueled models.
A new EV is still about $6,500 more than a new gas car, on average. Consumers used to be able to shave $7,500 off the EV price with a federal tax credit, but the Trump administration did away with that incentive in September.
The rise of used EVs is a rare positive signal for the American vehicle-electrification effort.
While new EV sales hit record highs under the pro-EV Biden administration, adoption was slower than expected, causing some automakers to walk back commitments to churn out electric models. When President Donald Trump took office last year and tossed out the tax credit along with a bunch of other supportive regulations, it added fuel to the fire.
Some analysts expect EV sales to surge as fallout from the war in the Middle East spikes oil and gas prices worldwide. In the U.S., the average cost of a gallon of gas is now well over $4 a gallon — and climbing — and in some countries, fuel shortages have spurred driving bans and fuel rationing. So far, the early evidence suggests that those expecting an EV boom are on to something.