Over 100K sold: Why used electric vehicles are in high demand

In the second quarter of 2025, used electric vehicles (EVs) sales surpassed 100,000 units for the first time ever, marking a shift in how Americans buy and access electric mobility.

The surge is being driven by a combination of falling prices, rising inventory, and growing consumer confidence. According to Cox Automotive, EV prices are down while incentives are up, a rare win for buyers in a high-cost automotive market.

The average transaction price for a used EV is as low as $35,000, compared to $48,799 for a new vehicle. The increased availability of 3-year-old off-lease electric models is creating a more accessible path to clean transportation.

Lease loophole and affordability shifts

A major factor behind the used EV wave is the controversial but legal IRA lease loophole, which allows buyers to access EV tax credits through leasing, even if the vehicle doesn’t meet the standard requirements. Many of these vehicles are now returning to the market, fueling supply and pushing prices lower.

Since 2022, over 1 million EVs have been leased, and many are hitting the resale market just as consumer demand for low-emission options climbs. This is especially appealing to price-sensitive buyers who were previously priced out of the new EV market.

EV lease penetration now stands at 66.7%, compared to just 24.5% for the industry average, highlighting the difference in demand and financing strategy.

Used EVs fueling equity in clean mobility

The rise of used EVs also offers a potential solution to one of the biggest challenges in electric adoption: economic equity. For years, EVs were viewed as the playthings of the affluent. Now, used options are helping bridge that affordability gap.

Environmental advocates see the trend as a welcome shift. “If we want a true EV transition, it has to reach beyond early adopters,” says Alonzo James, a clean energy policy analyst. “The growth in used EVs is the most democratic thing to happen to the industry yet.”

More importantly, the momentum isn’t slowing. With incentives averaging 14.2% of transaction price, more buyers are locking in deals that make long-term financial and environmental sense.

Challenges remain, but so do opportunities

Still, hurdles exist. Range concerns, battery life uncertainty, and uneven charging infrastructure continue to deter some would-be buyers. However, industry insiders say that as EV education grows and infrastructure expands, used EV adoption will only rise.

Manufacturers, too, are taking notice. Several brands are enhancing certified pre-owned (CPO) programs and warranties to ease battery-related anxiety. Dealers are receiving more training to help customers understand EV ownership.

The used EV boom is not just a market story, it’s a social and environmental turning point. And for many Americans, it’s the first realistic entry point into a cleaner driving future.

Read more on Everything we know about tariffs, loans, and the vanishing dream of car ownership in U.S.A.