Tesla Still Leads Used EV Sales, but Competition Is Catching Up

The used electric vehicle market continued to evolve rapidly in 2025. As new-car prices climbed and financing costs remained elevated, more buyers turned to used EVs as a practical and affordable alternative. The result was a market that became more competitive, more diverse, and less dominated by a single brand than in years past.

While Tesla remained the clear leader in used EV sales, new data suggests that its dominance is no longer as absolute as it once was.

Used EV Supply Expands as Leases End

After several years of strong new-EV sales, a growing number of vehicles are now returning to the market as leases expire. This influx has significantly increased supply, particularly for models that are one to five years old, a key sweet spot for value-focused buyers.

These vehicles still offer the core benefits that make EVs appealing—lower maintenance costs, fewer mechanical components, and no fuel expenses—while selling at steep discounts compared to their original sticker prices. As a result, used EVs are becoming a more mainstream option rather than a niche purchase.

Tesla Maintains the Lead, but the Gap Narrows

According to a new report from auto research firm iSeeCars, Tesla continued to dominate used EV sales in 2025. However, Ford and Volkswagen both gained share, signaling growing awareness and acceptance of non-Tesla electric vehicles.

Despite EV progress, gasoline-powered vehicles still overwhelmingly dominate the used market overall. The top 20 best-selling used vehicles last year were all internal combustion models, led by the Ford F-150. Even so, EVs are gradually moving up the rankings as prices fall and selection improves.

Most Popular Used EVs in 2025

Why Tesla Models Still Dominate

The Tesla Model 3 remained America’s best-selling used EV, accounting for nearly one-fifth of all used EV transactions. Low-mileage examples frequently sell for under $20,000, and in some regions, prices dip even lower.

Combined, the Model 3 and Model Y represented almost 39% of the used EV market in 2025. Their appeal is straightforward: access to the largest fast-charging network, strong efficiency, and software that remains among the most polished in the industry. While early Teslas are known for firm ride quality, they continue to deliver compelling value as used purchases.

Non-Tesla EVs Gain Momentum

The Ford Mustang Mach-E ranked third, capturing roughly 5% of used EV sales. Though newer EVs now offer more advanced software and platforms, the Mach-E remains a solid used option thanks to its comfortable ride, Tesla Supercharger access, and over 300 miles of range on select trims.

The Hyundai Ioniq 5 recorded the biggest jump, climbing from 17th place in 2024 to eighth in 2025. Its 800-volt architecture enables exceptionally fast charging, and its design and practicality continue to resonate with buyers. The model also earned InsideEVs’ 2025 Editor’s Choice Award, reinforcing its long-term appeal.

Looking Ahead to a Stronger 2026

Industry analysts expect the used EV market to become even more attractive in 2026. According to Edmunds, thousands of EV leases originating in 2023 are set to expire, further expanding inventory and giving buyers more negotiating power.

Even without federal EV tax credits and amid regulatory shifts favoring gasoline vehicles, used EVs remain one of the strongest value segments in the auto market. For shoppers priced out of new cars or unwilling to accept monthly payments that often exceed $1,000, the used EV landscape offers growing choice and flexibility.

Recommend Reading: Why 2026 Could Be the Best Year Yet to Buy a Used Electric Vehicle