Used EV Prices Rise Against the Trend, Low-Cost Models Lead Surge
The U.S. used electric vehicle (EV) market has exhibited an unusual pricing trend in 2026. According to the latest data from Recurrent, a company specializing in EV battery health analysis, the average price of used EVs increased by 5.1% from January to July 2026. Notably, models priced under $20,000 saw a 9.4% rise, contrasting sharply with the depreciation trends in the traditional used internal combustion engine (ICE) vehicle market and altering long-held perceptions about EV depreciation.
Recurrent’s report highlights that the price increases are primarily concentrated in affordable models. For instance, the average price of a 2023 Chevrolet Bolt EV rose from $17,718 at the beginning of the year to $21,204 in July, marking a nearly 20% increase. The 2022 Tesla Model 3 saw its price climb by approximately $3,000 during the same period, approaching $27,000, while the 2023 Ford Mustang Mach-E increased by about $4,000, nearing $35,000. Meanwhile, used EVs priced over $40,000 continued to depreciate, indicating a clear market divergence.
Recurrent notes that EVs have historically depreciated faster than ICE vehicles due to factors such as tax incentives, price wars, and rapid technological advancements. However, the price reversal observed in 2026 suggests the market is maturing. The report emphasizes that this shift represents a fundamental change in market structure for a vehicle category long known for high depreciation rates. In the affordable segment, used EVs are no longer viewed solely as depreciating assets.
Supply and Demand Shifts, High Gas Prices Drive Price Increases
The rise in used EV prices is underpinned by significant changes in supply and demand dynamics. Recurrent’s data shows that 128,000 used EVs were sold in the U.S. during the second quarter of 2026, surpassing the sales peak driven by tax credit policies in the third quarter of 2025. One key factor contributing to the increased supply is the rapid growth of the EV leasing market in recent years, with a large number of off-lease vehicles entering the used market. Despite the rise in supply, the average inventory days for used EVs are now comparable to those of ICE vehicles, indicating a parallel increase in demand.
High gas prices have played a pivotal role in driving demand. The report states that U.S. gasoline prices remained above $4 per gallon in July 2026, though slightly lower than the spring peak, they remain at historically high levels. Recurrent’s analysis suggests that rising gas prices have not only directly stimulated EV demand but also invigorated the broader used car market, further pushing up EV prices. This trend has left some buyers who missed out on low-cost Chevy Bolts feeling regretful, while also providing EV buyers with confidence that their purchases
