Used electric vehicle (EV) sales in the US surged 27.7% in March 2026 compared to the same month last year and were 53.9% higher than in February 2026, according to industry data [1]. The average price of a used EV dropped 6.1% from a year earlier to $34,653, narrowing the premium over used gas-powered cars to $1,102 from $3,923 previously [1]. Nearly 44% of used EVs sold in March were priced below $25,000, up from 39% in December 2025 [1].
This surge in used EV sales is driven partly by an influx of lease returns. Vehicles leased in late 2022 and throughout 2023 are now reaching their three-year terms and returning to dealer lots in large numbers. Joseph Yoon, a consumer insights analyst at Edmunds, said, “Where we had the highest concentration of leasing happen was between the tail end of 2022 and all the way through 2023, and since most leases are three years long, all those cars … are coming back to dealer lots in droves.” The share of EVs among lease returns is expected to rise from 2% in 2025 to 8% in 2026 [1].
Federal tax credits for new and used EVs expired at the end of September 2025 following the One Big Beautiful Bill Act, ending incentives created by the Inflation Reduction Act of 2022. However, most US states still provide some incentives such as tax credits, rebates, or utility discounts on EV purchases [1].
With prices converging, industry experts note the narrowing gap between used EVs and traditional cars. Stephanie Valdez Streaty, director of industry insights for Cox Automotive, said, “Price parity is getting close.”
The widening availability of used EVs at more affordable price points and the steady return of lease vehicles will continue to shape the market in 2026 [1].
