Main points
- In the first quarter of 2026, sales of used electric vehicles increased by 12% due to several factors, including an increase in post-lease vehicles and rising fuel prices.
- Donald Trump's decision to eliminate the electric vehicle tax credit has led to rising prices for new models, stimulating demand for used cars.
/ Unsplash / CHUTTERSNAP
The electric vehicle market has been going through a difficult period, but the used car segment has begun to recover. In early 2026, sales of such cars increased noticeably, and this was influenced by several factors.
After a difficult year for electric vehicles, the situation is gradually starting to change. According to Cox Automotive, used electric vehicle sales increased by 12% in the first quarter of 2026. This is reported by Gizmodo .
Why is demand for used electric cars increasing?
This is a positive signal against the backdrop of a market decline in late 2025. Then, after Donald Trump's decision to cancel the tax credit of up to $7,500 for electric cars, their cost in the US increased sharply. This hit buyers who could not afford expensive models first.
The consequences were immediate: major automakers, including Hyundai and Kia, reported a significant drop in electric car sales. And Ford recorded its largest net loss since the recession – about $4.8 billion in its EV division for 2025. As a result, some companies began to reduce investments, cancel models and close production.
At the same time, this very decision has actually created new opportunities for the used car market . Now it is gradually turning into a buyer's market.
One reason is the sharp increase in the number of electric vehicles returned after leasing. In 2022-2023, when tax breaks were in effect, demand for leasing increased. Now these cars are appearing en masse on the secondary market, often at significantly lower prices.
Additionally, studies show that three-year-old electric cars can be cheaper to own over 10 years than both new cars and gasoline-powered counterparts.
Another factor is the sharp rise in fuel prices . Global gasoline prices jumped after Iran restricted traffic through the Strait of Hormuz in response to military strikes by the United States and Israel. It is one of the key oil supply routes.
According to the WSJ , in the US, gasoline prices have exceeded $4 per gallon, and in some areas of New York City they have reached almost $7. Against this background, electric cars look like a more profitable alternative.
Morgan Stanley analysts estimate that at these fuel prices, operating an electric car could be about 60% cheaper than a car with an internal combustion engine .
The growth in interest is already noticeable: according to the CarEdge platform, the number of searches for electric cars in the US increased by 20% in just the first three weeks after the conflict escalated.
However, experts warn that it will take several months for high fuel prices to significantly affect the mass choice of buyers.
There is also a less optimistic factor – gasoline prices could remain high for a long time. Even if tensions in the Middle East ease, it could take months for oil supplies through the Strait of Hormuz to resume and the market to stabilize.
In short, the combination of cheaper aftermarket offerings and expensive fuel creates a new window of opportunity for electric vehicles – at least in the short term.