“There will be thousands of used EVs coming to market this year,” said Nathan Reed, CEO of uShip’s logistics division.
Used car prices will reach record high in Q3 2025
With used car prices exceeding $31,000 in Q3 2025, EVs are emerging as a budget-friendly option.
america today
- The number of used electric vehicles is increasing as lease contracts from the early 2020s are returned to dealers.
- Leased EVs have a federal tax credit loophole that allows them to be classified as commercial vehicles, making them an attractive option for consumers.
- Used EV sales increased significantly in January, increasing by more than 21% year-over-year.
The number of used electric vehicles is increasing as leases, which were popular in the early 2020s when the federal government offered tax credits, are being returned to dealers.
According to a new report from Cox Automotive, used EV sales reached 31,503 units in January, an increase of 21.2% compared to January last year and a 20.8% increase compared to December 2025.
“January was a reset for the EV market, with demand for new cars slowing sharply and inventories building up, while used EV sales strengthened and supply became even tighter,” Cox said.
“Prices declined slightly in both segments, with premiums contracting for EVs and (internal combustion engines),” the group said.
With that in mind, the USA Today Cars team looked at why the number of used EVs is expected to continue to grow and ranked the best-selling used EV brands.
Why is the number of used EVs increasing?
The federal government offered a $7,500 tax credit for leased EVs from 2022 to 2025, on top of the tax credits available for new car purchases.
Automakers that had EVs that were not eligible for purchase credits based on strict domestic manufacturing requirements and other factors promoted the leasing of models that were eligible for purchase credits under a loophole that classifies leased EVs as commercial vehicles. Due to loopholes in the law, many rules did not apply to leased EVs.
Nathan Reed, CEO of logistics at Austin-based uShip, which helps transport vehicles, said the number of used EVs at car dealerships will continue to rise as lease returns increase starting in the early 2020s.
“We’re going to see thousands of used EVs enter the market this year as leases from the past three to four years end and drivers choose not to renew,” Reid said. “A few years ago, dealers benefited from the introduced tax credits and were offering attractive lease deals to drivers with then-new EVs. This now benefits drivers interested in EVs or those looking for a more budget-friendly option, making used EV prices an even better deal than older (internal combustion engine) cars.”
Reed added: “Motorists who previously leased these new EVs will now choose to purchase as more and more options become available as used older EV models flood the market.”
Which brands will be the best-selling used EVs in 2026?
1. Tesla
Used EV sales volume: 12,416
Best-selling EV model: Tesla Model Y
Number of electric models:5
2. Audi
Used EV sales volume: 2,002
Best-selling EV model: Audi Q6 e-tron
Number of electric models:5
3. Ford
Used EV sales volume:1,995
Best-selling EV model: Ford Mustang Mach E
Number of electric models:3
4.Chevrolet
Used EV sales volume:1,959
Best-selling EV model: Chevrolet Equinox
Number of electric models:5
5.BMW
Used EV sales volume:1,842
Best-selling EV model:BMW i4
Number of electric models:4
