The market for used EVs ‘is so hot’ right now

Used electric vehicles are selling fast. Sales rose 7.7 percent from June and were up 10.1 percent from last year, according to Cox Automotive. New EV sales barely moved, up just 3.2 percent month over month and still down 41.5 percent from last year.

Price is a big part of why. New EVs cost about $6,477 more on average than gas cars, but used EVs cost only $2,967 more than used gas cars, making them a much easier buy. With more leased EVs expected to come off lease in the next few years, dealers expect plenty of used electric cars to stay on the market at decent prices. Rising gas prices, tied to the ongoing war involving Iran, are also pushing more buyers toward electric.

This shift comes even though federal tax credits for EVs, $7,500 for new and $4,000 for used, were repealed last year under the One Big Beautiful Bill. Sales dropped when those credits disappeared, but the used market has since bounced back on its own, which industry watchers call a surprise.

The broader picture is mixed. North American EV sales overall are down 18 percent this year, while Europe is up 28 percent, and global sales hit records in the second quarter. Still, new EV inventory in the U.S. is moving nearly as fast as gas cars, and industry analysts expect used EVs to keep gaining ground. For anyone weighing an EV, the used market may currently offer the better deal.