Used EV market poised to expand sharply as lease returns surge

A wave of returning leased electric vehicles is expected to flood the used-car market over the next three years, potentially making EVs far more affordable for buyers. In 2025, roughly 123,000 EV leases expired. That figure is projected to more than double to 300,000 in 2026, then climb to 600,000 in 2027 and 660,000 in 2028, according to Cox Automotive. Because most leased vehicles enter the used market, more than a million used EVs could become available in that span. The shift matters because the vast majority of cars sold in the United States are used. As of 2024, used vehicles accounted for about 76 percent of sales, according to Consumer Affairs. Price is a key driver: the group said the average new vehicle cost $46,992, while the average used vehicle cost $27,113. The New York Times highlighted the gap with a 2023 Hyundai Ioniq 5 SUV advertised by AutoNation at $28,000 with 18,000 miles on the odometer. The same vehicle was listed at $58,000 three years earlier. While new EVs tend to cost more than comparable gasoline models, prices on the used market are roughly on par. The surge may be temporary. The Times reported that sales and leases of new EVs fell 36 percent year-over-year from the end of 2024 to the end of 2025, and declined further in the first quarter of 2026.