Study Shows Used EV Sales Are Up As New EV Sales Fall

Electric vehicle sales growth has slowed from exponential to linear. It even dipped a bit in April 2025. It’s why automakers that formulated plans to go all-EV are now reassuring profit-minded shareholders that there are no plans to do that soon. It’s not all doom and gloom for EVs, however. New sales are falling, but used EV sales are booming.

Used EV Sales Were Up 32 Percent In May

According to Cox Automotive data, used EV sales in May 2025 increased 32.1% year-over-year to 36,609 units sold. That dramatically outpaced new EVs, which technically sold more overall but marked a sharp year-over-year drop of 10.7%. Per the data, the top-selling used EVs were the Tesla Model 3, Tesla Model Y, Tesla Model S, Tesla Model X, and Chevrolet Bolt. A sign of the demand is that used EV supplies are dwindling. Cox estimates an average 40-day supply of used EVs currently on dealership lots, less than the average 44 days for combustion vehicles and dramatically less than the 111-day supply of new EVs.

Used EVs Have Become More Affordable Relatively

Used EVs depreciate heavily. The average EV depreciates 58.8% over five years, well north of the 45.6% average depreciation. Some of the top EVs can be worth around half of their initial cost after a three-year lease. Heavy depreciation dramatically reduces the cost disparity. Cox data shows an average used EV listing price of $36,053 for models five years old or less. That’s only $1,848 more than the average combustion vehicle over the same span, about 5% higher. For comparison, the average new EV transaction price is $57,734, about 20% higher than the average ICE average of $48,090.

Those figures don’t factor in the potential $4,000 federal used EV tax credit, applicable to vehicles sold under $25,000. Operating costs are also a factor to consider, as these are often far lower for a used EV than a used combustion car. Charging typically costs less than fueling, and fewer moving parts mean less routine maintenance and a lower potential for costly repairs. The main issue, beyond heavier EVs chewing through tires, would be replacing the battery. But battery technology has improved immensely. Batteries are lasting longer than manufacturers anticipated and typically come with a warranty of 100,000 miles or more.

New EVs Versus Used EVs In May 2025

The Used EV Market Should Continue Growing

Several detractors holding back used EV sales should be eliminated in the coming years. For starters, future used EV markets should have far more variety. The main reason Teslas and the Bolt were the best-selling used EVs is that they’re the few EVs old enough to have an abundance of used examples. Eliminating the $7,500 federal tax credit – particularly the lease loophole – for EVs may also spur more interest in used models. There hasn’t been much incentive for buyers to look for a deal on a used EV when they can lease a new Hyundai Ioniq 5 for less money per month than many used cars.

As more EVs reach three years old, that paradigm should change.

Related

What 10-Year-Old Used EVs Sell For In 2025

Buying a new EV can be a strain on your bank account, so this is how much a ten-year-old used example will cost on the secondhand market.

Source: Cox Automotive