Off-Lease Electric Vehicles Poised to Expand Affordable EV Options

Leases on two- and three-year-old electric vehicles are set to expire in large numbers, creating a wave of used EVs that will roll onto dealer lots over the next three years. Cox Automotive projects that roughly 300,000 such vehicles will return to the market in 2026, followed by 600,000 in 2027 and nearly 660,000 in 2028. The influx will markedly increase the supply of affordable EVs for used-car shoppers.

New York Times

U.S. electric-vehicle sales have been declining since September, when federal tax credits of up to $7,500 were discontinued under legislation championed by President Donald Trump. At the same time, gasoline prices have risen above $4 per gallon, while the price of new electric models approaches historic highs. These factors have constrained demand for new EVs and heightened interest in lower-cost alternatives.

New York Times

Cox Automotive’s data show a steep rise in lease expirations: 123,000 off-lease EVs are expected in 2025, increasing to 300,000 in 2026, then to 600,000 in 2027, and nearly 660,000 in 2028. The majority of these vehicles are anticipated to be resold as used cars, expanding the pool of EVs available at more affordable prices.

New York Times

The surge of off-lease EVs is expected to broaden consumer consideration of electric vehicles, particularly among shoppers who previously avoided new EVs due to price. Analysts suggest that the lower-priced used inventory could stimulate demand for both used and new EVs, as many lessees may seek replacement vehicles after returning their leases. Survey data cited by Cox indicate that a large majority of current EV drivers would choose another electric vehicle for their next purchase.

New York Times

Stephanie Valdez Streaty, Cox Automotive’s director of insights, emphasized that price barriers have kept many consumers away from new electric models. She noted that the availability of off-lease vehicles offers a “much better value proposition,” and that higher gasoline prices are prompting buyers to reevaluate electric options.

New York Times

> “These off-lease vehicles will increase consideration for E.V.s for a lot of used-car shoppers,” Stephanie Valdez Streaty said. “A big reason a lot of consumers have stayed away from new E.V.s is the price. But these used vehicles offer a much better value proposition. And with higher gas prices, people are willing to give them a look.” — Stephanie Valdez Streaty, Director of Insights, Cox Automotive

New York Times

Dealers will begin receiving the off-lease inventory throughout 2026, with the volume growing each subsequent year. As gasoline prices remain elevated and new EV pricing stays high, the expanded used-EV market is likely to shape consumer purchasing decisions.

New York Times