Used EV sales hit a March record as new electric car demand cools, and off-lease supply may be the reason
Used electric vehicle sales in the United States climbed to a fresh monthly record in March, even as momentum in the new-EV market remained uneven.
New industry data points to a widening gap between shoppers chasing value in secondhand EVs and buyers hesitating on higher-priced new models.
Cox Automotive reported 42 924 used EVs sold during March, topping the previous record set last summer. The tally also marked a 27.7% increase from a year earlier, signaling that demand has stayed resilient even after federal incentives changed.
Tax credits fade, prices matter
Congress ended key EV tax credits in late 2025, removing a major lever that had boosted both new and used purchases. The now-expired used-EV credit had offered up to $4 000 on qualifying vehicles priced at $25 000 or less, subject to income caps.
In contrast, Cox said about 83 000 new EVs were sold in March, up month over month but down nearly 25% from a year earlier. The figures suggest many cost-conscious buyers are opting for used inventory rather than stretching for new models amid shifting incentives.
Off-lease wave boosts used inventory
Supply is also improving quickly as earlier lease deals begin to roll back onto dealer lots, expanding choices for shoppers seeking newer long-range EVs at lower prices. Analysts say this off-lease pipeline is helping normalize availability after years of tight inventory.
Research firm Recurrent has forecast that more than 1 000 000 EVs could come off lease over the next two years, potentially keeping used supply elevated. Cox also pointed to fuel costs as a tailwind, noting that higher gasoline prices can nudge more drivers toward electric options.
