Why 2026 Could Be the Smartest Year to Buy a Used Electric Vehicle

The Real Miscalculation Was Price, Not EV Demand

Recent commentary suggests automakers misjudged consumer interest in electric vehicles. In reality, the bigger mistake was betting that buyers would continue accepting ever-higher prices. New vehicle prices have climbed to roughly $50,000 on average, with EVs often priced even higher, especially after the $7,500 federal EV tax credit expired.

Throughout the 2010s, consumers steadily upgraded to larger, more expensive vehicles. Automakers assumed that trend would continue indefinitely. But today’s buyers face high interest rates, lingering inflation, and tighter budgets, making value far more important than novelty. That shift sets the stage for a major opportunity in the used EV market.

Lease Returns Will Flood the Market in 2026

According to new analysis from Edmunds, 2026 will bring a sharp increase in off-lease vehicles returning to dealerships. Leasing activity dropped significantly in 2022, which created limited used inventory in 2025. Leasing recovered in 2023, and those vehicles are now nearing the end of their lease terms.

Edmunds estimates that roughly 400,000 additional lease returns will hit the market in 2026. This surge is expected to dramatically expand the supply of low-mileage, well-equipped used vehicles, many of which were previously out of reach for budget-conscious buyers.

Why EVs Dominate the Off-Lease Pipeline

Electric vehicles make up a disproportionate share of these returning leases. In recent years, about 71% of new EVs were leased, largely due to a loophole in tax credit rules. While purchase incentives were restricted to North American-built vehicles, leased EVs qualified for the full credit regardless of origin.

Automakers leaned heavily into aggressive lease pricing to move EV inventory, often offering deals far below the vehicles’ sticker prices. Most of those leases were two or three years long, meaning a wave of modern EVs is about to re-enter the market at significantly reduced prices.

Depreciation Creates Rare Value Opportunities

EV depreciation has been steeper than for gas-powered vehicles, averaging around 13% higher, partly due to uncertainty around battery longevity. For original owners, that has meant larger losses. For used buyers, it translates into unusually strong value.

Many used EVs now sell for $30,000 or less, while still offering long range, advanced driver assistance, and performance that rivals or exceeds gas alternatives. Vehicles that once felt aspirational are quickly becoming affordable.

Examples That Redefine the Used Car Deal

Several popular EVs illustrate just how dramatic this shift has been. The Ford Mustang Mach-E, once priced far above many budgets, now averages under $30,000 on the used market. A low-mileage Premium trim can deliver nearly 300 miles of range and extensive technology at a price few gas crossovers can match.

The Kia EV6 shows a similar pattern. Models that originally sold for over $50,000 now routinely trade in the high-$20,000 range, offering fast charging, strong performance, and family-friendly practicality. The Tesla Model Y, still one of the most competitive EVs available, has also become far more accessible when purchased used.

Battery Concerns Are Largely Overstated

One lingering worry for first-time EV buyers is battery health. However, real-world data consistently shows that modern EV batteries degrade slowly and predictably. Lease returns typically arrive with fewer than 30,000 miles, where measurable capacity loss is minimal.

Long-term data from older EVs, including high-mileage Teslas, shows many vehicles retaining 80% or more battery capacity well past 200,000 miles. For most buyers, battery longevity is far less of a concern than commonly assumed.

Why 2026 Favors Patient EV Shoppers

While the used EV tax credit has disappeared, depreciation alone is creating compelling deals. As supply increases and pricing continues to soften, 2026 is shaping up to be a turning point for affordable electric mobility.

For shoppers willing to wait, the combination of inventory, pricing, and proven technology could make next year the most attractive moment yet to switch to electric—and likely never look back.

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