Rising Popularity of Used Electric Vehicles
Used electric vehicle (EV) sales have seen a significant increase, with a 27.7% rise in March compared to the same period last year and a 53.9% jump from February, according to Cox Automotive. This trend indicates a growing interest in used EVs, particularly as more consumers look for affordable options.
Of the used EVs that sold in March, 44% were priced under $25,000. This affordability is making used EVs more accessible to a broader range of buyers. The average price for a used EV in March was $34,653, which is down 6.1% from a year earlier. This figure is also just $1,102 higher than the average price of a used gas-powered car, showing a narrowing price gap between the two types of vehicles.
Factors Driving the Trend
While it’s difficult to determine exactly how much of the surge in sales is due to consumers switching to EVs because of higher gas prices, one contributing factor is the influx of used EVs hitting dealer lots as leases end this year. According to Joseph Yoon, a consumer insights analyst at Edmunds, the highest concentration of leasing occurred between the tail end of 2022 and all the way through 2023. Since most leases are three years long, many of these cars are now returning to dealer lots.
The share of EVs accounting for lease returns is expected to jump to 8% in 2026, up from 2% in 2025, according to Edmunds data. This trend suggests that more used EVs will be available on the market in the coming years.
Cost Considerations for EV Ownership
Even though the federal tax credits for purchasing new or used EVs were eliminated by the One Big Beautiful Bill Act, some state-level incentives may still provide financial benefits. Most states offer various incentives such as tax credits, rebates, or utility rate reductions to encourage EV purchases.
When considering a used EV, it’s important to understand the additional costs associated with ownership. Charging at home can be the cheapest option, but installing a home charger may involve significant upfront costs. A Level 2 charger typically costs around $500, but installation may require electrical upgrades, which could add thousands of dollars to the cost.
Maintenance and Repair Costs
EVs generally require less maintenance than gas-powered cars, as they don’t need oil changes and benefit from regenerative braking. However, tires may wear out faster due to the weight of EVs. Repairs can also be more expensive, especially if there is limited aftermarket support for certain models. Battery replacement costs can range from $5,000 to $15,000, depending on the vehicle.
Insurance for EVs tends to be more expensive than for comparable gas cars due to higher repair costs. The average annual cost of insuring an EV is $4,058, compared with $2,732 for a gas car. However, used EVs typically cost less to insure than new ones.
Additional Features and Subscriptions
Some EVs come with extra features that require paid subscriptions, such as self-driving capabilities or internet service. These subscriptions can range from $10 to $100 per month. While these features enhance the driving experience, they are not necessary for basic operation. If you purchase a used EV that had subscriptions, you may need to subscribe to access those features.
