The Used EV Market Just Got Weirder

Back around 2021, it was a wild time to be covering cars. And a wilder time to actually try to buy one. The pandemic had snarled supply chains, shut down car factories, and squeezed the supply of chips. It all meant that used cars were suddenly worth their weight in gold. (Almost.)

I remember stories of lightly used cars going for more than the MSRP of a new model. That was just because the new models were nowhere to be found. Things eventually rightsized themselves, but now we’re dealing with some similarly odd dynamics in the EV world. 

Used EVs are all of a sudden getting more expensive, rather than following the predictable value decline of depreciation. I, for one, am pretty pissed that a couple-year-old Chevy Bolt apparently now costs over $20,000. What makes all of this even more striking is that EVs in particular have always been dogged by terrible depreciation. So what gives? And why does this matter?

We discuss that—plus the canceled Honda Prologue and Mack’s new (used!) car—on this week’s Plugged-In Podcast.

High gas prices may have something to do with it. People (not just people who read this website, that is) also may simply be getting hip to the idea that used EVs are good buys. There are more different kinds of them—good ones—available than ever. Used EV sales are positively through the roof, hitting new records while the new EV market struggles to bounce back. 

But what's even more interesting to me is how this ties in with the ongoing recovery of the new EV market. A boom in used electric car sales is obviously great for getting people out of gas cars. But it also could be hampering growth on the new side of things, where we’re already seeing carmakers retreat and cancel models that had sold perfectly nicely. (Hello, Honda Prologue.)

2023 Chevrolet Bolt EV

Part of the reason we’re seeing used EV prices and demand increase probably has to do with the end of the new EV tax credit. Over the past couple of years, getting into an EV lease, or even buying one, could be surprisingly affordable. So a lot of people on a budget were able to skip used options and jump into a new car. Now with the incentives gone, that’s changed completely. People getting out of those leases now—like our own Mack Hogan—are now faced with the decision of leasing again, often with a far higher monthly payment, or just buying used. It’s easy to see why people would choose the latter. 

I do wonder what this means for new EVs. Great used options are certainly competing hard with new cars. So the EV-leasing bonanza of the last couple of years could make it harder for automakers to sell new models. And that feeds into the downturn the whole EV world (in America at least) is grappling with right now. Just another trend to watch out for as the EV industry charts a course through this mess. 

Contact the author: Tim.Levin@InsideEVs.com 

Catch Up On Past Pods

The Winners And Losers In EVs In 2026 So Far

What's The Best EV We've Ever Tested?

PODCAST: The $25K Slate Truck Is Here. What's Next?

Who's Winning The Robotaxi Race? It's... Complicated