The market for used EVs ‘is so hot’ right now

Sales of used electric vehicles (EVs) surged in July, increasing by 7.7 percent compared to June and 10.1 percent compared to the previous year, according to data released by Cox Automotive. New EVs, however, experienced only a modest 3.2 percent month-over-month growth and were down 41.5 percent from 2025. Scott Case, CEO of Recurrent, noted that the used EV market is "so hot."

Dealers he speaks with attribute the surge to high fuel costs, with gas prices rising again in July due to the ongoing war with Iran. EVs are not only cheaper to fuel but also maintain lower maintenance costs compared to internal combustion engine vehicles. However, new EVs are significantly more expensive, costing an average of $6,477 more than their gas counterparts.

The gap between used EVs and gas cars is narrower, at $2,967, making them an attractive option for consumers seeking affordability. Stephanie Valdez Streaty, director of industry insights at Cox Automotive, observed a glut of used EVs available at good prices, with many expected to come off lease in the coming years. This should keep the secondary market abundant and full of deals.

Despite the decline of new EV sales after the expiration of federal tax credits, the used EV market has shown remarkable resilience. The current data, released a year after Congress repealed the tax credits, further surprised analysts. With the war in Iran still ongoing, the used EV market has continued to grow, especially since March, when the conflict intensified.

While the used EV market has been a bright spot, North American EV sales lag behind the rest of the world. July marked a return to significant negative year-on-year growth rates, with North American sales down 18 percent so far this year compared to a 28 percent increase in Europe. However, there are signs that the new EV market in the United States is stabilizing, with month-over-month growth continuing and cars selling almost as quickly as traditional gas-powered vehicles.

Despite this, used EVs are likely to remain a driving force in the electric vehicle market, with Stephanie Valdez Streaty predicting continued growth.