The market for used EVs ‘is so hot’ right now
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- Cox Automotive reported used EV sales rose 7.7% month-over-month and 10.1% year-over-year in July, while new EVs grew only 3.2% month-over-month and fell 41.5% versus 2025.
- Recurrent CEO Scott Case told dealers that rising gas prices tied to the Iran war are pushing buyers toward EVs, calling the used market 'pretty much uniquely the beneficiary of the war.'
- The price gap between used EVs and gas cars averages just $2,967, compared with a $6,477 premium for new EVs over internal combustion counterparts, making used EVs 'an attractive option' per Cox's Stephanie Valdez Streaty.
- The One Big Beautiful Bill, passed a year ago, repealed $7,500 new and $4,000 used EV tax credits, triggering an immediate sales slump that Case said no one expected the used market to overcome.
- Tesla's Model Y remains the best-selling new EV, but Case said Stellantis has dramatically retreated from electrification — 'The party has completely stopped' — while Japanese models surge.
- North American EV sales are down 18% year-to-date in 2025, lagging Europe's 28% gain, though the IEA reported record Q2 EV sales across 50 countries globally.
- A wave of expiring leases over the next few years should keep the used EV supply 'abundant and teeming with deals,' per Valdez Streaty, sustaining the secondary market's trajectory.
Why it matters: With the $4,000 used EV tax credit gone for a full year and new EV sales still down 41.5% from 2025, the used segment's 10.1% growth means budget-conscious buyers — not federal subsidies — are now driving America's EV adoption, and incoming lease returns will keep prices competitive.
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