Used EV Market Surges in the U.S. as Gasoline Prices Rise

The U.S. market for used electric vehicles (EVs) is gaining momentum as elevated gasoline prices encourage more consumers to consider battery-powered cars.

Demand for used electric vehicles in the United States is rising as high gasoline prices make alternatives to conventional cars more attractive to consumers.

The trend comes amid the U.S. war with Iran, which has contributed to higher energy costs.

At the same time, the elimination of federal clean-vehicle tax credits has made some new EV purchases more expensive, putting additional pressure on new-vehicle demand.

Cox Automotive estimates that U.S. sales of used electric vehicles could reach approximately 127,000 units in the third quarter of 2026, potentially setting a record.

Tesla is expected to be a major beneficiary of the increased demand, according to Forbes Daily, which reported on the trend on October 9.

“The longer gasoline stays over $4 a gallon, you get a lot more consumers willing to consider and/or pull the trigger on a used EV,” Jeremy Robb, Cox Automotive's chief economist, told Forbes.

Used EVs can offer buyers a lower purchase price than new electric models, while allowing them to reduce their exposure to gasoline costs.

However, buyers still need to consider factors such as battery condition, vehicle range, charging access, insurance and potential repair costs.

The growth in used EV sales highlights a shift within the U.S. electric-vehicle market. While policy changes have challenged sales of new vehicles, higher fuel prices may be making secondhand electric cars more attractive to budget-conscious consumers.