Used EV sales spike as gas prices bite — cheap lease returns reshape the market

Supply glut cools prices

Used electric-vehicle sales in the US jumped as buyers hunt for relief from rising petrol costs. First-quarter used-EV sales rose 12 percent year-on-year and 17 percent from the previous quarter, according to Cox Automotive estimates, while average prices for used EVs fell about 8.5 percent between February 2025 and February 2026. The gap between the average price of a used EV and a used petrol car has all but closed, shrinking from roughly $4,923 to $1,334 — a reset that has many shoppers doing a double take.

Leases, incentives and a market rerun

Analysts point the finger at a wave of lease returns. Hundreds of thousands of EVs leased during the post-pandemic buying spree are coming back onto the market as contracts expire, swelling supply. It has been reported that the 2025 withdrawal of a $7,500 consumer tax credit helped sap new-EV demand — new EV sales reportedly slumped about 28 percent year-on-year in Q1 — and that aggressive price cuts, led by Tesla, further deflated used values. Barclays’ Dan Levy notes leases once made EVs cheaper to drive than many combustion models; the average leased Chevrolet Blazer EV payment once sat lower than its petrol equivalent, illustrating how those early deals rewired expectations.

Buyers feel the pinch — and the relief

With average petrol prices topping $4 a gallon again, shoppers are feeling squeezed. Cue the emotional payoff: for cash-strapped buyers, the used-EV glut looks like an opening act — a gateway, as Edmunds’ Jessica Caldwell put it — into electric ownership. Who wouldn’t be relieved to find a capable EV at a fraction of new-car sticker shock? Still, range anxiety and patchy charging infrastructure remain real concerns in a country built for the long haul.

What’s next?

Automakers are answering with plans for a new generation of more affordable EVs, and resale dynamics will be key to whether EVs broaden beyond early adopters. For now, the market is in flux: lower used prices are drawing buyers back in, but whether high gas prices will finally push Americans toward new EV purchases — and at scale — is far from settled.

Sources: arstechnica