Used EV sales are surging. How ownership costs compare to gas cars
Cavan Pictures / Gabriel Sean Photography | Cavan | Getty Images
Consumers shopping for used cars may notice that electric vehicles have increasingly affordable price tags.
Even though new electric vehicle purchases have decreased, second-hand EV sales increased by 27.7% in March compared to the previous year and 53.9% compared to February. newest EV Monitor From Cox Automotive, a services and software company for the automotive industry.
While it’s difficult to understand how much of the increase in sales is due to consumers turning to electric vehicles due to higher gas prices, at least one contributing factor is an influx of used electric vehicles hitting dealer lots this year, offering buyers more model choices when leases expire.
“Where the highest lease concentration occurred was between the end of 2022 and 2023, and because most leases last three years, all of those cars are coming back to dealerships in droves,” said Joseph Yoon, consumer insight analyst at auto research site Edmunds.
Share of EVs accounting for rental returns It is expected to increase to 8% in 2026According to Edmunds data, there was an increase from 2% in 2025.
In March, 44% of used EVs sold for less than $25,000, said Stephanie Valdez Streaty, director of industry insights for Cox Automotive. In December, this rate was 39 percent.
The average price of a used electric vehicle was $34,653 in March, down 6.1% from the previous year, according to Cox. This amount is also just $1,102 higher than the average price of a used gas-powered car, which is $33,641. That price gap is narrowing: A year ago, there was a $3,923 premium on used electric vehicles over second-hand gasoline cars.
“Price parity is approaching,” Valdez Streaty said.
The increase in sales comes despite the elimination of federal tax credits for the purchase of new or used EVs created by the Inflation Reduction Act of 2022, which were originally planned to remain in effect through 2032. The One Big Beautiful Bill Act, signed into law on July 4, ended tax credits worth up to $7,500 for new EVs and $4,000 for used EVs, effective at the end of September 2025.
Price parity is approaching.
Stephanie Valdez Streaty
director of industry insights at Cox Automotive
But there may still be a financial benefit at the state level. According to one study, most states have some type of incentive available to benefit electric vehicle buyers, including tax credits or rebates or service fee reductions. 2023 report From the National Conference of State Legislatures, a bipartisan nonprofit group for state legislators and their staffs.
Of course, the amount paid for any car is only a fraction of the cost of ownership. If you’re considering a used EV and switching from a gas-powered car, here are some expenses that may differ from what you’re used to.
Charging at home may be the cheapest
Even though you won’t be paying for gas with an EV, you still need to charge your car’s battery.
Experts say generally the cheapest way to do this per kilowatt is to use a home charger. The exact rate depends on where you live and utility rates.
However, installing the charger can be expensive. While the device itself, called a Level 2 charger (which typically requires a 240-volt circuit) costs about $500, not all homes can install it without electrical upgrades, Yoon said. In this case, installation can cost thousands of dollars depending on the work that needs to be done.
If you can install a charger at home, the cost of electricity is “a very small fraction of public charging costs,” Yoon said.
If you drive about 1,015 miles per month, charging an electric car at home will cost about $59.66 per month compared to a fast charger at a public charging station; You will pay $169 for this energy. Report from Kelley Blue BookAn automobile research and pricing website. The fuel cost for a gas car that gets 30 miles per gallon would be $147.24 for that monthly mileage. The estimate used the recent average national gas price of $4.09 and average kilowatt-hour costs for home use and public chargers of 17.65 cents and 50 cents, respectively.
Also, make sure you know any local regulations or restrictions regarding charging an electric vehicle at home. Some homeowners associations, for example, may not allow it, Yoon said.
If you’re not going to charge your EV at home, you can find public charging stations operated by networks that offer discounts if you subscribe, Yoon said. Additionally, your utility provider or state may offer a rebate for home EV charger installation.
Things to know about maintenance costs
Gasoline vehicles require some maintenance that you won’t have to worry about, such as oil changes in electric vehicles. Brakes can also last longer in EVs According to Kelley Blue Book, it’s because of something called regenerative braking. This involves using electric motors to slow the car and send energy back to the battery. In general, EVs require less maintenance costs.
However, EVs wear out tire treads faster due to the weight of the car. Consumer ReportsA nonprofit group that conducts independent testing of consumer products.
“You usually have a specific number [of miles] You expect your tires to last a long time. For electric vehicles, this number is lower because the vehicles are very heavy and the weight contributes to the deterioration of the tires,” Yoon said. “I think this is something people should be aware of.”
Repairs may be more expensive
Experts say depending on where you live and what type of EV you have, it may be difficult to find a qualified repair shop nearby if your vehicle is damaged in an accident. Or if there is no strong after-sales support for the car in question, it may take longer to get the required part.
If you’re in a collision and need repairs, EVs generally cost more than gasoline cars. Cars running at full throttle cost an average of $5,105 to repair in 2025. According to Mitchell Internationalspecializes in claims and collision technology. This compares with $6,395 for fully battery-powered cars (i.e. excluding hybrids).
Batteries are expensive to replace
It is also worth making sure that the car’s battery is in good condition.
“When buying a used EV, you need to know about the battery warranty,” said Valdez Streaty of Cox Automotive.
EV batteries generally come with an eight- or 10-year or 100,000-mile warranty, he said. For cars coming off three-year leases, “there will still be a lot of the warranty left,” he said.
“In most cases, these warranties are transferable,” he said, adding that you should request a current battery health report for the vehicle.
A new battery can cost between $5,000 and $15,000. Consumer Reports.
Insurance is often more expensive, research shows
Electric vehicles tend to have higher insurance than comparable gasoline vehicles due to higher repair costs.
By 2025, the average annual cost of insuring an electric car is $4,058, while the average annual cost of insuring a gasoline car is $2,732. report From insurance website Insurify.
But the report shows that the actual cost of an EV policy can vary widely depending on the model, insurer and where you live. And generally speaking, a used EV will cost less to insure than a new one.
Some extra features require paid subscription
Some EV owners pay for subscriptions that provide extra features in their cars, such as self-driving or driver-assistance features or internet service. Depending on the tool and feature, these paid options can cost $10 or $20 to $100 per month.
But you don’t need these to start the car. “You can choose to have more premium options available to you through subscriptions,” Yoon said. “But you don’t need any subscription for the car to work well. I don’t think that’s something the average consumer should worry about.”
If you buy a used EV with a subscription, you must be subscribed for these features to work, Valdez Streaty said.
