Used EVs Surge: Falling Prices Expected for Electric Cars

The high cost of electric vehicles (EVs) has been a significant barrier to widespread adoption. However, a substantial influx of used EVs over the next three years is poised to dramatically drive down prices, potentially making electric mobility a much more attainable option for many. According to data from Cox Automotive, the number of EV leases expiring is set to skyrocket. In 2025, an estimated 123,000 EV leases will conclude. This figure is expected to more than double to 300,000 in 2026, and then double again to 600,000 in 2027 and 660,000 in 2028.

Typically, a large portion of leased vehicles re-enter the market as pre-owned options. This trend suggests that well over a million used EVs could become available in the used car market within the next few years. This increased supply is likely to lead to a significant decrease in prices, making EVs far more accessible than they are today. For context, the used car market already dominates sales in the US, with approximately 76 percent of all car sales being pre-owned as of 2024, according to Consumer Affairs.

This burgeoning supply of second-hand electric cars could be a game-changer for consumers who have been priced out of the new EV market. As more affordable used EVs become available, the transition to electric transportation could accelerate, benefiting both consumers and the environment. It will be interesting to watch how this trend unfolds and impacts the broader automotive industry.