- Used EV sales are bouncing back strongly after the end of EV tax credits in September.
- Americans bought nearly 43,000 used EVs in March, according to new industry data, marking a new monthly record.
- Last month, used EV sales rose by 28% year over year, as new EV sales slumped by almost the same amount.
As new electric vehicles struggle to gain traction again, the market for used electric cars is swiftly shaking off the loss of EV tax credits, new sales data published last week shows.
In March, according to Cox Automotive, Americans bought 42,924 secondhand electric cars. That is by far the best month for used EVs since Congress eliminated all EV tax credits at the end of the third quarter of 2025; from October through February, monthly used EV sales numbered roughly 30,000, plus or minus a couple-thousand units, according to Cox. But that’s not all. Last month’s used EV sales represented a new record, surpassing August’s 40,960 units. That previous record came at the height of the tax-credit-fueled EV-buying frenzy, so topping it this quickly is impressive.
It all suggests that the post-tax-credit hangover may be in the rearview for the used EV market—and underscores how drastically the markets for new and used EVs are diverging. The short-lived federal tax credit for used EVs provided up to $4,000 toward the purchase of a vehicle that cost $25,000 or less, so long as buyers also fell below income caps. Americans rushed to claim the credit throughout last summer. But even without it, used EVs are proving to be a fast-growing bright spot in an otherwise gloomy EV industry. In March, used EV sales were up 27.7%, per Cox.
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Compare that with what’s happening with new EVs. After the $7,500 incentive met its early end in September, sales of new EVs fell by over 50%. They’ve struggled to recover. In March, roughly 83,000 new EVs were sold, a 20% month-over-month gain, but a nearly 25% year-over-year decline, per Cox.
Supply is a big part of the used-EV success story. There has never been a better time to shop for a lightly used, modern, long-range EV. All those cheap EV leases people jumped into over the last few years are starting to return to dealerships. Meanwhile, automakers are shifting focus to combustion vehicles and pulling electric models from the market, dinging sales of new vehicles.
Off-lease EVs present a huge buying opportunity for EV shoppers on a budget.
Photo by: Patrick George
High gas prices may have something to do with the strong results too. “The influence of high gas prices can’t be ignored in the numbers,” Stephanie Valdez Streaty, director of industry insights at Cox, wrote in a statement on Wednesday.
The used EV market may continue on being the industry’s growth engine for some time. Over 1 million EVs are set to come off lease in the next two years, according to Recurrent, flooding dealerships with nice, two-to-three-year-old electric cars. And high prices at the pump look like they’re sticking around too.
Contact the author: Tim.Levin@InsideEVs.com