Used EV Prices May Drop as 1.6 Million Leases Expire by 2028

Key Takeaways

• EV lease expirations will jump from 123,000 in 2025 to 660,000 in 2028
• A 2023 Hyundai Ioniq 5 that listed at $58,000 new now sells for $28,000 used
• New EV sales fell 36% year-over-year from late 2024 to late 2025, which may limit future used supply

The Numbers Behind the Coming EV Price Drop

Cost has been the biggest barrier to EV adoption. But that could change soon. A wave of lease returns is about to flood the used car market with electric vehicles.

In 2025, just 123,000 EV leases expired. That number will more than double to 300,000 in 2026. It will double again to 600,000 in 2027 and hit 660,000 in 2028, according to Cox Automotive. Most leased vehicles end up on the used market. That means over 1.6 million used EVs could become available in the next three years.

This matters because Americans overwhelmingly buy used. About 76% of all cars sold in the US in 2024 were pre-owned, according to Consumer Affairs. Price is the main reason. The average new vehicle cost $46,992, while used averaged just $27,113.

Real-World Example: $58,000 to $28,000

The New York Times highlighted how steep the discounts can be. AutoNation, a major dealership chain, is advertising a 2023 Hyundai Ioniq 5 SUV for $28,000. The car has just 18,000 miles. It includes all-wheel drive and a panoramic roof. Three years ago, it listed at $58,000.

That is a 52% price drop in three years. While new EVs typically cost more than comparable gas cars, used prices are roughly equal between the two. The coming supply surge could tip that balance further in favor of electric.

The Window May Not Stay Open

There is a catch. The glut of used EVs depends on continued new EV sales. That pipeline is shrinking.

New EV sales and leases fell 36% year-over-year from the end of 2024 to the end of 2025, according to the Times. The decline continued through the first quarter of 2026. Fewer new leases today means fewer used cars hitting the market in three years.

For buyers watching the market, the message is clear. The best used EV deals may arrive between 2026 and 2028. After that, supply could tighten again.

What This Means for Buyers

Used EVs come with some unique considerations. Battery health matters more than in gas cars. Buyers should check degradation levels and remaining warranty coverage. Many EV batteries carry 8-year or 100,000-mile warranties.

Charging infrastructure is another factor. A used EV makes the most sense for buyers who can charge at home or have reliable workplace charging. Public charging networks have improved, but home charging remains the most convenient option.

The good news: a three-year-old EV with 18,000 miles has plenty of life left. Most EVs are designed for battery longevity, and maintenance costs are generally lower than gas vehicles. No oil changes, fewer brake replacements due to regenerative braking, and simpler drivetrains overall.

Frequently Asked Questions

Why are used EV prices dropping?

Over 1.6 million EV leases will expire between 2026 and 2028, flooding the used market with inventory. More supply typically means lower prices.

How much cheaper are used EVs than new ones?

Significantly cheaper. A 2023 Hyundai Ioniq 5 that listed at $58,000 new is now selling for $28,000 used, a 52% discount.

Is it safe to buy a used electric car?

Generally yes. Most EV batteries carry 8-year or 100,000-mile warranties. A three-year-old EV with 18,000 miles still has substantial battery life remaining.

Will used EV prices stay low?

Possibly not. New EV sales fell 36% from late 2024 to late 2025. Fewer new leases today means less used inventory in future years.

What should I check when buying a used EV?

Battery degradation level, remaining warranty coverage, and your access to charging at home or work. These factors matter more than mileage alone.