Electric vehicles (EVs) have faced significant barriers to broader adoption, primarily due to their high costs. However, a substantial influx of used electric vehicles anticipated over the next three years may lead to a significant reduction in prices, making them more accessible to consumers.
According to Cox Automotive, the number of expiring EV leases is projected to rise sharply in the coming years. In 2025, only 123,000 leases on EVs will expire. This figure is expected to more than double to 300,000 in 2026, and will continue to escalate, reaching 600,000 in 2027 and 660,000 in 2028. Typically, most leased vehicles find their way into the used car market, meaning that an estimated one million used EVs could become available over this timeframe.
The demand for used cars considerably outpaces that of new vehicles in the United States, with approximately 76 percent of all cars sold being used, as reported by Consumer Affairs. The price differential plays a major role in this trend; while the average price for a new vehicle hovers around $46,992, used cars average just $27,113.
The disparity in pricing is particularly evident in the EV segment. The New York Times highlighted an example from AutoNation, a prominent dealership chain, showcasing a 2023 Hyundai Ioniq 5 sport utility vehicle that had been driven only 18,000 miles and is listed for $28,000. Just three years prior, this vehicle, which includes premium features such as all-wheel drive and a panoramic roof, was valued at $58,000.
Despite the current equivalence in used EV pricing and that of traditional gas-powered vehicles, this situation may not persist. The Times points out that sales and leases of new EVs have seen a significant drop, with a 36 percent year-over-year decline from the end of 2024 to the end of 2025. Furthermore, this downward trend continued into the first quarter of 2026.
This shift could influence the evolving landscape of electric vehicle ownership, potentially enhancing affordability for consumers and accelerating the transition to electric mobility. However, the sustainability of these changes remains uncertain, as market dynamics fluctuate.
