Americans who own their cars tend to keep them for a long time – 8 to 12 years. But those who lease their cars often only drive them for two or three years. Many people lease cars for just this reason. They want to have a new car every few years to avoid growing maintenance costs and just for the pleasure of having a new vehicle. With hundreds of thousands of electric cars coming off leases, the used EV market is accelerating.
Americans still buy far more new EVs than used ones, but the gap is beginning to close. Used EV sales jumped by 34% in 2025 compared with the prior year. EVs made up about a tenth of new vehicle sales in the US last year and about 2% of used car sales.
Sales of EVs have slumped as a result of the discontinuation of the federal tax credit along with US automakers backing away from their expanded EV offerings.
Without incentives, the average EV costs about $6,000 more than the average new gas car. Many states still have incentives in place that reduces that difference, but the loss of the $7,500 federal credit at least temporarily dampened enthusiasm.
Meanwhile, for the time being, an average used EV is now basically at price parity with a used gas car and that’s a big deal in the marketplace.
At present, the overall situation is in flux as rising gas prices due to the Iran war have triggered renewed interest in electric cars. In some countries, fuel shortages have led to driving bans and fuel rationing.
