Used EV Sales Rise Amid Price Drops

U.S. consumers are increasingly purchasing used electric vehicles (EVs) due to significant price depreciation and improved reliability, positioning the pre-owned market as a primary entry point for buyers. In January, used EV sales in the U.S. reached 31,503 units, marking an approximate 21% increase from the previous year. For the entirety of 2025, used EV sales totaled 378,140 vehicles, representing a 35% rise compared to 2024 figures.

This trend is driven by rapid advancements in battery technology, range, and software, which have lowered resale values and narrowed the price gap with comparable gasoline vehicles. The premium for used EVs over gasoline vehicles decreased to $1,376 in January from $2,591 in December, according to Cox Automotive.

The rollback of federal incentives for new EVs and higher new vehicle prices have also contributed to the growth of the used EV market, which is part of the approximately $800 billion U.S. pre-owned car market.

Tesla models, particularly the Model 3 and Model Y, dominate the used EV market. Factors such as Tesla's new model price cuts and Hertz's large-scale sale of Teslas have increased the supply of affordable used EVs. Analysts anticipate continued expansion of the used EV sector as more vehicles come off lease and trade-ins increase, providing a wider array of lower-cost options for consumers.