In the first half of 2025, the used electric vehicle (EV) market in the United States witnessed an extraordinary surge. Sales skyrocketed by 34% compared to the same period in the previous year. Data from Cox Automotive reveals that monthly sales surpassed the 100,000 - unit mark for the first time in the second quarter. Moreover, July sales experienced a remarkable 40% year-on-year increase, setting a new monthly transaction record.

When it comes to pricing, the average transaction price for used EVs dipped to $34,700 in August, leveling the playing field with their gasoline-powered counterparts of similar specifications. This booming market activity can be attributed to several key factors.

Firstly, a substantial number of three-year lease vehicles are reaching the end of their terms. This influx, combined with automakers introducing new models, has driven down the resale value of older EV models, resulting in a plentiful supply in the used car market.

Secondly, from a cost perspective, used EVs offer significant savings. Compared to gasoline vehicles, they can save consumers over $900 annually in operating costs. Additionally, their maintenance costs are merely half of those for gasoline-powered vehicles.

Thirdly, real-world usage feedback has dispelled some common concerns. It turns out that the worries about battery degradation in EVs have been exaggerated. In fact, EVs demonstrate superior long-term reliability compared to traditional gasoline vehicles.

Lastly, the impending expiration of the federal government's tax credit, which offers up to $4,000 for used EV purchases, at the end of September has acted as a catalyst. This has spurred a wave of consumer purchases, further fueling the growth of the used EV market.