Despite federal tax credits ending, used EV sales have risen sharply, according to a first-quarter report from Recurrent.
That shift equals opportunity for U.S. dealers navigating affordability pressures and historically tighter overall used supply.
Driving the news: Recurrent’s Liz Najam told CDG News that EV sales are still increasing even after losing the federal incentives because they remain a fantastic value.
“There are a lot of shoppers, especially in [high cost of living] areas, who would not have qualified for the federal incentives, but are still looking for a great price on a great car,” Najam wrote in an email. “Used EVs will continue to meet that need, since they are generally newer cars with less wear and tear and better tech than comparatively priced used gas cars.”
For context: Compared with used ICE vehicle counterparts, used EVs can offer better value based on mileage and vehicle age, often at better price points, too. Under $20,000, the average EV is two years newer than comparable ICE vehicles and comes with 40,000 fewer miles.
As of January, 56% of used EV inventory costs less than $30,000.
Meanwhile, 55% of ALL used EVs are 2023 or newer.
About 39% of used EVs cost under $25,000.
Between the lines: With prices stabilizing and political influence calming, in addition to the expected supply surge of used EVs, the models enter “a more stable and mature market,” the report said.
And that could translate to increased sales for dealers.
Joel Bassam, with Easterns Automotive, told Recurrent that used EVs come “with technology and they come standard with all of these phenomenal features.”
“Your competitive vehicle will be an older car with more miles and less features,” Bassam said. “It’s hard to justify buying an ICE Camry versus a Polestar 2 if they’re the same price and the same year, just based on features alone. When you sit in those two vehicles, they just don’t feel like they’re in the same price point.”
And, in a market where gas-powered used vehicle prices have risen and sub-$20K options are scarce, that makes used EVs an attractive alternative, and the sales reports support it.
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By the numbers: Used EV sales in 2025 jumped by 35% YoY, according to the report.
December sales were up 10.2% YoY.
December sales rose 9.7% from November.
Worth noting: Teslas make up about 30% of used EV inventory, according to Recurrent, which listed the price points for models below, adding that “after used Model 3 and Model Y, 2023 Volkswagen ID.4, Nissan Ariya, and Ford Mustang Mach-E are well represented in vehicle inventory. Teslas, therefore, may set benchmark prices for dealers.
Model 3s are No. 1, with about 13.74% market share (~ $27,000).
Next are the Model Ys with about 9.33% (~ $33,000).
Followed by Model Ss that own about 3.92% of the market ( ~ $40,000).
And Model Xs have under 3% market share. ( ~ $48,000).
Battery matters: Lithium iron phosphate batteries (LFPs) are up to 30% cheaper than traditional nickel-based packs, significantly more heat-stable and may last two- to three-times longer in cycle life, Recurrent said.
Here are a few models with LFPs:
Ford Mustang Mach-E (Starting in late 2023, base trims are equipped with a 73-kWh LFP pack).
Rivian R1S and R1T (Newer R1S and R1T offer a 92.5-kWh LFP battery on their entry-level dual-motor Standard models).
2027 Chevrolet Bolt (65-kWh LFP battery).
The signal: Used EVs come with an age/mileage mix that’s a gift for dealers navigating affordability concerns. And with more than one million lease returns expected to hit the market by 2027, used EV sales could bring welcome stability to used car sales. Especially when used ICE vehicle supplies remain tough to capture for many dealers.
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