Surge in Used EVs May Lower Prices

One of the main hurdles for electric vehicles (EVs) has been their price tag. However, a surge of used EVs hitting the market over the next few years could significantly lower costs. In 2025, only 123,000 EV leases are set to expire, but that number is projected to soar to 300,000 in 2026, then double again to 600,000 in 2027, and reach 660,000 in 2028, according to industry insights.

Most leased vehicles typically find their way into the used car market, which means over a million used EVs could soon be available, making them much more affordable. In fact, around 76 percent of cars sold in the U.S. are used, as reported in 2024. This trend is largely driven by price differences; the average cost of a new vehicle is around $46,992, while used cars average just $27,113.

A notable example of this price shift for EVs comes from a large dealership chain, which is promoting a 2023 Hyundai Ioniq 5 SUV for $28,000. With only 18,000 miles on the clock and packed with features like all-wheel drive and a panoramic roof, it was originally priced at $58,000 just three years ago.

While new electric cars generally carry a higher price than their gasoline-powered equivalents, the used market is leveling the playing field. However, this influx of used EVs may not last indefinitely. Recent reports indicate that sales and leases of new EVs dropped by 36 percent year-over-year from late 2024 to late 2025, with further declines noted in the first quarter of 2026.