US EV Sales-People Ain't Stupid

Industry Discussions Hybrid & Electric Vehicle Fools
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https://electrek.co/2026/03/27/used-ev-sales-boom-new-ev-sales-drop-28-percent-q1-2026/
New EV inventory has ballooned to 130 days’ supply — 46% higher than the 89 days’ supply for combustion vehicles. That glut is forcing automakers to pile on incentives. According to Cox Automotive’s Stephanie Valdez Streaty, Director of Industry Insights, EV prices fell to an average transaction price of $55,300 in February, narrowing the gap with gas cars to a record-low $6,500.

The most striking data point is pricing. Used EVs now average $34,821 — within just $1,300 of the $33,487 average for used gas vehicles. That near-parity is unprecedented. For context, the used EV-to-ICE price gap was over $10,000 as recently as early 2023.

And if one really hunts & is willing to travel out of town they could pick up a used EV for $20-$25k.

Used EV days’ supply sits at 42 — just four days higher than the 38 days for combustion vehicles. That means used EVs are turning at nearly the same pace as gas cars on dealer lots, a sign of genuine consumer demand rather than a supply glut.

Cox’s Deputy Chief Economist Mark Strand pointed to one specific factor that will accelerate this trend: lease returns. The wave of EVs leased under the IRA’s so-called “leasing loophole” between 2023 and 2025 is now starting to hit dealer lots

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According to Cox Automotive, used EVs had a standout first quarter at Manheim, the US’s largest wholesale auto marketplace. Sales hit a record in Q1, with nearly 37,000 EVs sold through Manheim’s auction lanes.

That surge lines up with broader demand. Cox Automotive estimates that more than 100,000 used EVs were sold at retail in Q1, making it the second-strongest quarter on record. The only higher mark came in Q3 2025, when buyers rushed to lock in government-backed incentives before they expired.

On the wholesale side, used EV sales rose 12% year over year and jumped 17% compared to Q4 2025. Prices also held firm through March, rising along with the typical spring market bump.

Supply is also growing – fast.

And there’s more coming. Experian expects EVs to make up 15% of all off-lease vehicles by the end of 2026, up from 7.7% in Q1, the Financial Times reported.

Not all of those lessees are buying their cars at the end of the lease. Many are walking away when the residual value exceeds the vehicle’s market value. That’s pushing more EVs back into auctions.

Used EV bargains will soon appear.

A three-year-old EV retained about 40 percent of its original value at auction by the end of 2025. Compare that to early 2022 when comparable vehicles held roughly 90 percent of their value

Bad News for auto makers & dealers. Good News for buyers!