Electric Dreams Dim as EV Prices Zap Resale Market

The electric vehicle (EV) industry is experiencing a dramatic shakeup as resale prices for used EVs plummet steeply in the face of waning consumer demand. Following years of explosive growth driven by generous federal tax credits and competitive lease offers, a tidal wave of over one million EVs will pour into the used car market in the coming years as leases expire. This increase in supply is lowering prices, with certain models depreciating by over half their value in five years.

Current figures indicate that prices for used EVs have declined by around 32% year-on-year, with the average used EV now costing around $27,800—levels not experienced since the beginning of 2021. Tesla models, previously the gold standard for resale EVs, have fallen below $30,000 for models from 2017 to 2019. Other models such as Porsche's Taycan have fallen even more sharply, with depreciation rates over 26% in the last year alone.

 

Part of the cooling demand is attributable to ongoing worries about charging infrastructure, range anxiety, and the increased upfront prices of EVs relative to gasoline cars. Furthermore, the phasing out of the federal EV tax credit for new purchases is also likely to affect new EV sales and used EV pricing dynamics.

 

Even with the price declines, the used EV market is growing quickly. In 2025 alone, an estimated 123,000 leased EVs will come back into the market, with that figure projected to more than double in 2026 and nearly triple by 2027. This surge poses challenges and opportunities for buyers and dealerships alike, with numerous used EVs becoming more affordable and qualified for clean vehicle tax credits.

 

For buyers, this might be the best time to think about buying a used EV as prices become more affordable, although industry analysts warn that these price trends could stabilize or reverse as tariffs and supply chain dynamics change.

 

Source: Cox Automotive, Recurrent Auto, iSeeCars, Autoweek