Used EV Sales Accelerate as Lease Returns Flood Market

Used EV sales are rising sharply, with volumes jumping 44 percent from February to August 2024. From April through June 2024, used models accounted for 32 percent of all electric vehicles sold in the United States. The category is now the fastest selling in the car market overall.

Sales volume climbed from 30,879 units in February to 44,350 in August. The top models by volume are the Tesla Model 3 and Model Y. Turnover is rapid across leading models, with many selling in under three weeks.

The top eight used EV models all sell faster now than they did before the Iran War began. Active listings grew from 37,000 in July to 44,000 in August. Yet the average time to sell held steady at 42 days in both February and August.

Supply wave

A growing stream of off-lease EVs is entering the market. The number of lease returns doubled from the first quarter to the fourth quarter of 2024. More than 100,000 off-lease EVs are expected to hit dealerships between October and December 2024 alone.

This wave stems from more than 600,000 new EVs leased from 2023 to 2025 under a commercial-purchase loophole in the Inflation Reduction Act. A much larger swell is projected for 2028, originating from leases signed in the second and third quarters of 2025.

Buyer confidence

Despite no universal battery health standard, real-world data is easing fears about long-term durability. EV batteries in the US are warranted against failure for at least eight years or 100,000 miles. Some manufacturers also warrant that energy capacity remains at 70 percent or better within a given period.

Recurrent, which tracks hundreds of thousands of EVs, finds most retain at least 90 percent of their original battery capacity at 100,000 miles. Older air-cooled Nissan Leafs are a noted exception. Analyst Sam Abuelsamid notes the robust warranties should alleviate concern. "With 100,000-mile warranties on batteries, buyers should have no concern about that aspect," he said.

Accessing detailed battery state-of-health data often requires connecting to the vehicle's OBD-II port with specialized software. Vehicles frequently recharged via DC fast charging may face a higher risk of degradation.

Pricing and parity

Used EV prices are rising even as they near parity with used gasoline cars. The average listing price increased from $34,821 in February 2024 to $37,441 in August, a 7.5 percent rise. Year-over-year, used EV prices are up 8.2 percent, compared to a roughly 3 percent increase for internal combustion engine vehicles.

Consequently, the used EV price premium over comparable gas vehicles widened from 2.9 percent to 7.8 percent year over year. Paul Waatti of AutoPacific observes a silver lining in this depreciation. "The same depreciation that has been so painful for early EV owners can become a major advantage for the next buyer," he said.

Used electric cars tend to be newer and have fewer miles than the average used car. By August 2024, 59 percent of used EV sales were handled by franchised new-car dealerships, up from 55 percent the previous month. Demand was pulled forward in late 2025 as thousands of consumers rushed to buy before federal subsidies expired.

The market is poised for continued growth. Nearly 150,000 off-lease EVs are expected to enter the market in the third quarter of 2027.