Used EV sales will likely continue gaining momentum as an influx of pre-owned models lands on dealer lots over the next three years, and as buyers look for ways to lower ownership costs.
First things first: Amid slowing new EV demand and average new vehicle prices hovering around $50,000, used EV sales are climbing, according to Cox Automotive data.
Used EV sales reached 42,080 units in April, up 16.7% YOY and 3% month over month, pushing used EV market share to a record 2.8%.
Days supply fell to 32 in April, down modestly from March and 31.8% below year-ago levels, with EV inventory sitting below internal combustion engine vehicle supply for a second straight month.
Tesla led used EV sales in April, with 16,174 units sold through non-Tesla dealers, followed by Hyundai, Chevrolet, Ford, and BMW.
The average used EV listing price rose to $35,895 in April, up 4.2% month over month and 0.5% YOY, with 29 models posting price increases, according to Cox Automotive. Affordability also improved, with 44% of used EVs selling for under $25,000 in March, up from 39% in December, per a CNBC report.
What they’re saying: “The used EV market remains comparatively well positioned,” reads Cox Automotive’s latest EV Market Monitor, authored by Stephanie Valdez Streaty. “Improving availability, expanding model-year coverage, and faster inventory turnover continue to support steady growth, even as month-to-month performance varies among higher-volume brands.”
Why it matters: Used EVs could become a growing affordability play for dealers as more budget-conscious shoppers look for alternatives to higher-priced new vehicles, underscoring the need for retailers to think more strategically about their EV inventory.
Between the lines: More than 1 million used EVs are expected to enter the market over the next three years, which could expand consumer choice and put downward pressure on prices, The Verge reported.
In 2026, expired EV leases are expected to jump from 123,000 in 2025 to more than 300,000.
That figure is projected to double again to 600,000 in 2027, before rising to 660,000 in 2028.
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What they’re saying: “Where we had the highest concentration of leasing happen was between the tail end of 2022 and all the way through 2023, and since most leases are three years long, all those cars … are coming back to dealer lots in droves,” said Joseph Yoon, a consumer insights analyst at Edmunds, per CNBC.
Also worth noting: EV loyalty is rising, with the share of buyers trading in an EV for another EV climbing to 35.4% in the new market and 44.5% in used by late April, up from 26.2% and 34.3%, respectively, in January, per CNBC.
Bottom line: Used EVs are becoming a more meaningful part of the affordability conversation, creating potential growth opportunities for dealers in the segment while increasing the need for careful pricing, inventory management and consumer education as supply expands.
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