Used EVs Are Now America’s Fastest-Selling Cars — Here’s Why

A Surprising Shift in the Market

Despite the recent slowdown in new electric vehicle (EV) sales, the used EV segment is booming. With the federal EV tax credit gone and affordability pressures mounting, buyers are increasingly turning to pre-owned electric cars. According to new data from Edmunds, used EVs are now the fastest-selling vehicles of any powertrain type in the United States.

This shift marks a significant change in consumer behavior. As new EV prices remain high and interest rates continue to rise, shoppers are discovering that used EVs offer the right balance of advanced technology, strong performance, and affordable pricing.

Why Used EVs Are Selling So Fast

Market data from Edmunds reveals that three-year-old EVs are outperforming gasoline, hybrid, and plug-in hybrid vehicles in resale speed. In the third quarter of 2025, used EVs sat on dealer lots for an average of just 34 days, compared with 40 days for hybrids, 43 for gasoline cars, and 47 for plug-in hybrids.

By contrast, the overall used car market slowed down, with average time on the lot rising to 41 days, up from 37 days a year ago. The main culprit? Prices. Even older used cars remain expensive, with the average transaction price hitting $31,067, a 5% year-over-year increase.

Edmunds attributes the trend to consumers carefully weighing their options between high-priced used cars and new models with limited incentives. But for EVs, the value proposition has rarely been stronger. Many three-year-old electric models now cost under $30,000, with relatively low mileage and modern technology that still feels current.

Depreciation Creates Opportunity

EVs are notorious for steep depreciation—often seen as a downside for owners, but now turning into a selling point for used buyers. Edmunds found that used EVs offer some of the best value in the market, with prices that have dropped sharply from their original MSRPs.

Take Tesla, for example. The Model S, once a six-figure luxury car, now sells used for an average of $44,621 after just three years, representing a $70,000 depreciation. Yet the technology, acceleration, and comfort remain on par with many new cars.

Other popular models like the Model 3 and Model Y have also seen dramatic price drops. The average used Model 3 sells for $24,447 after only 24 days on the market, while a Model Y takes about 26 days to sell at an average of $27,624.

Non-Tesla options are also performing well. Used Hyundai Ioniq 5s now sell for around $23,964, while Ford Mustang Mach-Es average $26,920 and Kia EV6s fetch $24,447. In total, half of the top 20 fastest-selling used cars in Q3 were either EVs or hybrids.

A Coming Wave of Affordable EVs

One reason for this surge in used EV availability is the expiration of leases from vehicles sold during the recent EV boom. From 2022 to 2024, aggressive incentives and the now-defunct $7,500 federal tax credit fueled record new EV sales, many of which were lease deals.

Now, those leases are ending, and thousands of low-mileage EVs are entering the used market. This influx is expected to improve affordability and make EV ownership accessible to a wider range of buyers.

For automakers, this dynamic is both an opportunity and a challenge. On one hand, it helps normalize EV adoption by putting more vehicles into circulation at lower prices. On the other, it highlights the pricing imbalance that continues to plague new EV sales.

Manufacturers can’t sustain deep discounts or lease subsidies forever. Many, including Tesla and Ford, are now cutting production or offering incentives to manage inventories. But as the used market strengthens, it may help stabilize demand and reduce volatility in the broader EV ecosystem.

Automakers Under Pressure

While used EVs thrive, traditional automakers face increasing strain. Honda recently cut its profit forecast by 20%, citing falling car sales in Asia and fierce competition from Chinese automakers like BYD.

Chinese brands are rapidly expanding across Southeast Asia, eroding the market share of Japanese incumbents. A Honda source told Reuters that “Southeast Asia is starting to be significantly impacted by Chinese players,” pointing out BYD’s rapid rise in Thailand.

This shifting competitive landscape also helps explain why talks of a Honda–Nissan merger fell apart earlier this year. Analysts described it as a potential “alliance of the weak,” with both companies struggling to maintain momentum in the EV transition.

Meanwhile, Chinese automakers continue to invest aggressively in affordable EVs, positioning themselves to capture the next wave of price-sensitive buyers — both new and used.

Tesla’s Leadership Shake-Up

As competitors grapple with market changes, Tesla continues to reorganize internally. The company’s Cybertruck program chief, Siddhant Awasthi, recently announced his departure after eight years at Tesla.

His exit follows a series of high-profile leadership changes, as Tesla shifts focus from EV manufacturing to robotics and AI development. According to Cox Automotive, Tesla sold 5,385 Cybertrucks in the third quarter, a 62.6% year-over-year decline.

Awasthi’s resignation adds to a growing list of executive exits in 2025, including David Lau, Tesla’s former vice president of software engineering. The changes underscore the uncertainty surrounding Tesla’s future direction as it pursues self-driving software and humanoid robots alongside its vehicle business.

The Road Ahead for Used EVs

Looking forward, the used EV market is poised for continued growth. As more three-year-old vehicles enter circulation, buyers will find greater variety and better pricing than ever before.

For many, used EVs represent a sweet spot between innovation and affordability—offering the latest battery technology and performance without the sticker shock of new models.

Automakers, meanwhile, must adapt to this new reality by lowering production costs, improving battery longevity, and building consumer trust in EV durability. The used market’s strength could become a stabilizing force in a segment otherwise defined by rapid change and policy uncertainty.

The next question is whether this surge will sustain as new EV prices fall—or whether buyers will continue to see the best value in cars that have already taken their depreciation hit.

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