By Tom Murphy
There are good reasons for consumers to consider buying a battery-electric vehicle right now, partly because federal tax returns are hitting bank accounts and the prospect of $4-per-gallon fuel can hit the family budget hard, especially for those with lots of soccer practices and dance lessons for kids to attend. But there might be an even better reason to consider buying a used EV: because prices are falling as lots of them are coming off lease.
As the first quarter of 2026 ended last week, we started to see the sales trends. General Motors, for instance, said the market for new EVs, which was gyrating throughout 2025 before federal tax credits ended Sept. 30, is showing early signs of stabilizing at about 6% of US auto sales.
Lots Of EVs Coming Off Lease
The first quarter of the year tends to see used car sales surge, and dealers were certainly anticipating it this year, said Mark Strand, Cox Automotive deputy chief economist, during a recent webinar recapping Q1 sales trends.
“Lower taxes and higher than usual tax refunds (about $3,800 and 10% higher on average than 2025) mean more disposable income out there to activate pent-up demand,” Strand said. “So far, despite the Mideast conflict, consumers and dealers have shown up as expected both in the wholesale lanes and on the retail lots.”
While the supply of used cars in general is tight right now (with an average price of about $25,000), Strand said lots of EVs will be coming off lease over the next year or two, mainly in the higher adoption markets where they were initially leased.
“In the current environment of general affordability pressure… these units will look like a bargain to many buyers.”
–Cox Automotive Analyst Mark Strand
While sales of new EVs dropped 28% (from Q1 2025) to 212,600 units in the US, sales of used EVs ticked upward 12% to 93,500 vehicles. Higher gas prices might nudge shoppers to consider a new EV, but affordability and charging access remain the biggest barriers, said Stephanie Valdez Streaty, Cox Automotive director of industry insights. “In contrast, the used EV market continues to gain momentum,” she said.
Source: Cox Automotive
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This article originally appeared on CarBuzz and is republished here with permission.
