Used electric vehicle prices have seen an unusual increase, rising 5.1% from January to June 2026, and continuing to climb by 7% year-to-date through mid-July. This trend is notable as used EVs have historically depreciated rapidly, often leading to poor resale values.
The average transaction price for 3-year-old EVs increased from $31,429 to $33,303 in the first half of 2026, reflecting a broader price growth across 21 of the 25 best-selling used EV models. Factors contributing to this price appreciation include high gasoline prices, which have surged to about $4.10 per gallon, prompting consumers to seek more fuel-efficient options.
Additionally, the market is experiencing a significant influx of used EVs, with over 500,000 leased vehicles expected to return to the market this year. Despite this high supply, strong consumer demand has countered the typical price drop associated with increased inventory.
The elimination of federal tax credits for EV purchases has not deterred buyers as anticipated, indicating a shift in consumer behavior. The affordability of used EVs compared to older gas-powered vehicles has also played a crucial role in driving sales, with used EV sales up 20% in June compared to the previous year.
However, while current EV owners may benefit from higher resale values, potential buyers may face challenges due to rising prices, which could limit affordability in the used car market