NEW YORK — Falling prices and improved reliability are helping drive a surge in demand for used electric vehicles in the United States, turning the pre-owned market into a major entry point for buyers who cannot afford new models, according to a new analysis.
Moreover, steep depreciation, rapid improvements in battery technology and expanding charging infrastructure are helping push second-hand electric vehicles closer in price to comparable gasoline-powered cars, easing concerns that once slowed adoption, according to Reuters.
The news service reported that used EV sales in the United States reached 31,503 units in January, up about 21% from a year earlier, according to Cox Automotive. For all of 2025, used EV sales totaled 378,140 vehicles, about 35% higher than the previous year, according to CarEdge, the report stated.
Prices ‘Normalize’
“We’re seeing used EV prices normalize in ways that are opening the category to a much broader set of buyers,” a spokesperson for online car retailer Carvana told Reuters.
As prices fall, the premium for used EVs compared with gasoline vehicles has narrowed sharply. In January, the average price difference between used electric and gasoline vehicles was $1,376, down from $2,591 in December, Cox Automotive said.
Industry analysts told Reuters the used market is also benefiting from declining federal incentives that previously boosted purchases of new electric vehicles. Higher prices for new models are prompting more buyers to consider used options within the roughly $800 billion U.S. pre-owned car market.
“Used EVs can provide a more accessible entry point for customers who are interested in electric vehicles but may not be ready to buy new,” Wess Dunn, senior vice president at CarMax, said in comments reported by Reuters.
A Charge in Supply
Supply of used electric vehicles is expected to grow as more leased vehicles are returned and trade-ins increase. Analysts told Reuters EVs account for nearly half of the top 10 leased models in the broader auto market.
Leasing has become a popular option for EV buyers because it protects drivers from rapid depreciation as battery technology evolves quickly, Sam Fiorani, vice president for global vehicle forecasting at AutoForecast Solutions, told Reuters.
Tesla remains the dominant brand in the used EV market, with the Model 3 and Model Y among the most widely available and sought-after vehicles, according to Reuters.
Better Batteries
Meanwhile, concerns about battery durability and charging availability — once major obstacles to EV adoption — are easing as technology improves and charging networks expand.
“Modern EVs should see their battery packs survive the life of the vehicle,” Fiorani told Reuters, adding that battery degradation over time is similar to the gradual performance decline seen in aging gasoline vehicles.
