Why Used Teslas Are Flying Off Of Lots

As buyers balk at new cars that now cost $50,000 on average, they're turning more to off-lease EVs.

Tesla Model 3

Suvrat Kothari

By: Suvrat Kothari

Nov 11, 2025 at 2:15pm ET

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New-car prices have been climbing steadily for more than a year, with tariffs and inflation only adding fuel to the fire. In September, the average transaction price topped $50,000 for the first time on record. As more buyers turn to the used market in search of relief, prices there are rising too.

Yet despite all the noise about slowing new EV sales, used EVs are proving surprisingly resilient.

A new report from auto industry intelligence firm Edmunds said the average price of three-year-old used vehicles increased 5% to around $31,000 in the third quarter of this year. At the same time, these vehicles are also sitting longer on dealer lots as buyers are becoming more selective and cautious, taking longer to analyze the high prices of used cars versus the incentives on new cars to find what suits them best.

EVs, however, are bucking this trend.

Hyundai Ioniq 5 XRT

Photo by: Hyundai

A three-year-old Tesla Model S, for example, is selling much faster than a Toyota Corolla Hybrid, taking an average of 21.5 days to find buyers, versus 29 days for the Toyota. In fact, eight of the top 20 fastest-selling three-year-old vehicles are now EVs. That list is no longer just dominated by Teslas. Buyers are also snapping up electric models from Hyundai, Kia, Ford and Audi.

“Three-year-old used EVs have been selling faster than gas vehicles for the past year, including the final two quarters of 2024,” Ivan Drury, the director of insights at Edmunds, told me in an email. “What’s different now is that quicker turnover is happening across a broader mix of used EV models, not just a handful of early movers as we saw last year, where there were fewer units and types for sale,” he added.

Drury noted that the surge in used EV purchases during the third quarter wasn’t driven by the same frenzy that pushed buyers toward new EVs to claim the now-dead $7,500 federal tax credit. While some used models also qualified for the smaller $4,000 used EV tax credit, pre-owned vehicles rarely benefit from the aggressive incentives that automakers offer for new ones. What drove used EV sales faster was mainly the cost.

Take a look at the average prices of three-year-old used EVs in the table below. Apart from the Model S, which averages $44,621, the rest of the seven EVs are all priced in the mid-$20,000s, which is emblematic of how affordability drives adoption. In most cases, buyers are getting a far more high-tech vehicle compared to gas cars of the same price, and with much lower operating costs.

Vehicle

Days On Lot

(Edmunds Q3 2025 data)

3-year-price Original MSRP Tesla Model S 21.5 $44,621 $115,356 Tesla Model 3 24 $24,447 $57,009 Cadillac CT5 25.8 $31,549 $52,179 Tesla Model Y 26.3 $27,624 $69,017

Lexus NX 350h

26.9 $40,575 $49,520 Lexus NX 250 27.5 $32,161 $42,308 Lexus RX 350L 28.7 $39,773 $59,049 Toyota Corolla Hybrid 28.9 $20,238 $26,823 Kia Rio 29.5 $14,203 $18,912 Lexus NX 350 29.6 $36,573 $49,895 Hyundai Ioniq 5 29.7 $23,964 $50,660 Volkswagen ID.4 30.9 $23,145 $49,071 Toyota GR Supra 31 $50,322 $57,796 Honda Accord 31.3 $24,895 $32,096 Audi Q8 e-tron 31.7 $28,322 $77,342 Honda Passport 31.9 $31,446 $43,855 Kia EV6 32 $24,447 $54,167 Ford Mustang Mach-E 32.4 $26,920 $57,018 Toyota Corolla Cross 32.7 $23,902 $28,245

However, three-year-old used EVs are hard to find, and account for only 1.6% of the overall three-year-old car market. EV sales have grown rapidly over the past few years, so there are far fewer three-year-old EVs available than there are new EVs. That’s one of the reasons why buyers act fast. They want to snag the deal before it's gone.

In the mid-$20,000 price range, however, the value proposition for EVs is strong. Buyers get lightly used models that are quieter than gas cars, benefit from America’s growing fast-charging network and offer the performance and neck-snapping acceleration that’s an order of magnitude better than used gas cars at the same price.

Buying used EVs is also more predictable than opting for new ones. “Consumers looking at new products could fall into the trap of waiting for the best deal each month as automakers tinker with pricing, but in the used market, you already know what is happening,” Drury said. So he expects this trend of used EVs selling faster than used gas cars to continue in the coming months.

2024 Kia EV6

Photo by: Patrick George

Moreover, the new EV market is vastly different from what it was three years ago. Buyers have more options with a better range, faster charging and overall improved technology. Buyers coming off three-year-old leases are prone to opt for these new vehicles, meaning used EV supply will likely be strong in the coming months, Drury said.

And even though there’s an influx of new affordable EVs in the pipeline, driving one home might not be as easy as it seems. The new Nissan Leaf is fantastic, the InsideEVs team agreed after driving it extensively recently. But Nissan has cut the Leaf’s production by more than half this year due to a battery supply issue. And General Motors has said that the upcoming Chevy Bolt will be a “limited run” only.

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So, in case you’re not able to grab one of these new, exciting and affordable models, rest assured that if you look hard enough, you should find something in the used EV market that will satisfy your needs and won’t carry an egregious price tag.

Have a tip? Contact the author: suvrat.kothari@insideevs.com