Sales of used EVs are rapidly increasing. Comparison of ownership costs with gasoline cars

Consumers shopping at used car dealerships may find that electric vehicles are increasingly being sold at affordable prices.

Despite the slowdown in new electric vehicle purchases, used EV sales in March were up 27.7% from a year earlier and 53.9% from February, according to the latest EV Monitor from Cox Automotive, an automotive services and software company.

It’s difficult to determine how much of the surge in sales is due to consumers shifting to EVs as gas prices soar, but at least one factor is an influx of used EVs onto dealer lots as leases end this year, giving buyers more model options.

“The highest concentration of leases will be in late 2022 and 2023, with most leases being three years, so all those cars will be coming back to dealer lots in droves,” said Joseph Yun, consumer insights analyst at car research site Edmunds.

The share of EVs in lease revenue is expected to jump from 2% in 2025 to 8% in 2026, according to Edmunds data.

In March, 44% of used EVs were sold for less than $25,000, said Stephanie Valdez Streety, director of industry insights at Cox Automotive. As of December, that percentage was 39%.

The average price of a used EV in March was $34,653, down 6.1% from the same month last year, Cox said. This amount is only $1,102 more than the average price of a used gas-powered car, which is $33,641. That price gap is narrowing. A year ago, used EVs commanded a $3,923 premium over used gas-powered cars.

“Price parity is getting closer,” Valdez Streeti said.

Sales have increased despite the repeal of the federal tax credit for the purchase of new or used EVs, created by the Inflation Control Act of 2022 and originally scheduled to last until 2032. The One Big Beautiful Bill Act, signed into law on July 4 of last year, ends tax breaks worth up to $7,500 for new cars and $4,000 for used EVs at the end of September 2025.

However, there may still be economic benefits at the state level. A 2023 report from the National Conference of State Legislatures, a nonpartisan nonprofit organization for state legislators and their staffs, says most states have some kind of incentive to benefit EV buyers, such as tax credits, rebates or lower utility rates.

Of course, the amount you pay for a car is only part of the cost of ownership. If you’re considering a used EV and are upgrading from a gas-powered vehicle, there are some different costs to consider.

With an EV, you don’t have to pay for gas, you still have to charge your car’s battery.

Experts say the cheapest option per kilowatt is usually to use a home charger. Exact rates will vary depending on your location and utility rates.

However, installing a charger can be expensive. The units themselves, so-called Level 2 chargers (which typically require a 240-volt circuit), cost about $500, but they can’t be installed in every home without upgrading the electrical equipment, Yun said. If so, installation can cost thousands of dollars, depending on the work required.

However, if you can install a home charger, your electricity bill will be “a fraction of the cost of public charging,” Yun said.

If you drive about 1,015 miles a month, charging your electric car at home will cost you about $59.66 a month, compared to paying $169 for that energy at a fast charger at a public charging station, according to a report from Kelley Blue Book, a car research and pricing site. If you drive 30 miles per gallon in a gas-powered car, your fuel cost for that monthly mileage is $147.24. This estimate used the recent national average gas price of $4.09 and average kilowatt-hour costs for home and public chargers of 17.65 cents and 50 cents, respectively.

Additionally, be sure to learn about local regulations and restrictions regarding charging your EV at home. For example, some homeowner associations may not allow it, Yun said.

If you don’t charge your EV at home, you may be able to find public charging stations operated by networks that offer discounts for subscriptions, Yun said. Additionally, your utility or state may offer rebates for installing a home EV charger.

Gasoline cars require maintenance such as oil changes, but you don’t need to worry about that with EVs. Additionally, EV brakes can last longer thanks to so-called regenerative braking, according to Kelley Blue Book. This involves using an electric motor to slow down the car and send energy back to the battery. EVs generally have lower maintenance costs.

But the weight of EVs tends to cause tire treads to wear out faster, according to ConsumerReports, a nonprofit that conducts independent testing of consumer products.

“Usually, you would expect a tire to have a certain (mileage) number in its lifespan. For EVs, that number is lower because the car is heavier, and that weight contributes to tire deterioration,” Yun said. “I think that’s something people should realize.”

Depending on where you live and what type of EV you own, experts say it can be difficult to find a qualified repair shop near you if your car is damaged in an accident. Or, if you don’t have strong aftermarket support for your particular car, it may take longer to get the parts you need.

If you are involved in a collision and need repairs, an EV will generally cost more than a gas-powered vehicle. In 2025, the average repair cost for a fully gasoline-powered car was $5,105, according to claims and collision technology specialist Mitchell International. This equates to $6,395 for a fully battery-powered car (excluding hybrids).

It’s also important to make sure your car’s battery is in good condition.

“When buying a used EV, you need to know about battery warranties,” said Cox Automotive’s Valdez Streeti.

EV batteries typically come with an eight or 10-year warranty or $100,000 in mileage, he said. For cars that are coming off a three-year lease, “there’s probably still a lot of warranty left,” she says.

“In most cases, these warranties are transferable,” she says, adding that you should request a current battery health report for your vehicle.

According to Consumer Reports, a new battery can cost between $5,000 and $15,000.

Insurance for EVs tends to be more expensive than comparable gas-powered vehicles due to higher repair costs.

According to a 2025 report from insurance website Insurify, the average annual cost to insure an EV is $4,058, while the average cost to insure a gas-powered vehicle is $2,732.

However, the actual cost of an EV insurance policy can vary widely depending on the model, insurance company and where you live, the report shows. And generally speaking, used EVs are cheaper to insure than new ones.

Some EV owners pay for subscriptions that give their cars additional features such as self-driving capabilities, driver assistance features, and internet services. Depending on the car and features, these paid options can cost anywhere from $10, $20 to $100 per month.

However, you don’t need them to operate the car. “You can choose to have more premium options available through your subscription,” Yoon said. “But you don’t need a subscription to get your car working properly. I don’t think the average consumer has anything to worry about.”

If you buy a used EV with a subscription, you’ll need to subscribe to take advantage of those features, Valdez Streeti said.