Used EV sales are surging. How ownership costs compare to gas cars

Consumers shopping used-car lots may notice that electric vehicles are increasingly sporting more affordable price tags.

Even as purchases of new electric vehicles have faltered, used EV sales jumped 27.7% in March from a year earlier and were 53.9% higher than in February, according to the latest EV Monitor from Cox Automotive, a services and software company for the automotive industry. 

While it’s hard to tease out how much of the surge in sales is due to consumers shifting to EVs amid higher gas prices, at least one contributing factor is the influx of used EVs hitting dealer lots as leases end this year, giving buyers a greater selection of models.

“Where we had the highest concentration of leasing happen was between the tail end of 2022 and all the way through 2023, and since most leases are three years long, all those cars … are coming back to dealer lots in droves,” said Joseph Yoon, a consumer insights analyst at Edmunds, an auto research site.

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

In March, 44% of used EVs sold for under $25,000, said Stephanie Valdez Streaty, director of industry insights for Cox Automotive. In December, that share was 39%. 

The average price for a used EV in March was $34,653, down 6.1% from a year earlier, according to Cox. The amount is also just $1,102 higher than the average price of $33,641 for a used gas-powered car. That price gap has been shrinking: A year ago, there was a $3,923 premium on used EVs compared with preowned gas cars.

“Price parity is getting close,” Valdez Streaty said.

The rise in sales is coming despite the disappearance of federal tax credits for purchasing new or used EVs created by the Inflation Reduction Act of 2022 and originally scheduled to remain in place through 2032. The One Big Beautiful Bill Act, signed into law last July 4, ended the tax breaks — which were worth up to $7,500 for new EVs and up to $4,000 for used EVs — effective at the end of September 2025.

At the state level, however, there may still be a financial benefit. Most states have some sort of incentive in place to benefit EV buyers, including tax credits or rebates, or utility rate reductions, according to a 2023 report from the National Conference of State Legislators, a bipartisan nonprofit group for state legislators and their staff.

Of course, the amount paid for any car is only part of the cost of ownership. If you are considering a used EV and would be switching from a gas-powered car, here are some expenses that may differ from what you’re used to.

Typically, the least expensive way to do that, per kilowatt, is with a home charger, experts say. The exact rate depends on where you live and the utility‘s rates.

However, installing a charger can be expensive. While the unit itself may cost about $500 for what’s called a Level 2 charger (which generally requires a 240-volt circuit), not all homes can have it installed without electrical upgrades, Yoon said. In that case, the installation could cost thousands of dollars, depending on what work needs to be done.

Yet if you’re able to install a home charger, the cost of electricity “is a fraction of what public charging costs,” Yoon said.

If you drive about 1,015 miles per month, charging an electric car at home would cost about $59.66 monthly compared with a fast charger at a public charging station, where you’d pay $169 for that energy, according to a report from Kelley Blue Book, an auto research and pricing site. For a gas car getting 30 miles per gallon, the fuel cost would be $147.24 for that monthly mileage. The estimate used a recent average national gas price of $4.09 and average kilowatt-hour costs of 17.65 cents and 50 cents for home use and at public chargers, respectively.

Additionally, be sure you know of any local regulations or restrictions on charging an EV at home. For example, some homeowners associations may not allow it, Yoon said.

If you wouldn’t be charging your EV at home, you may be able to find public charging stations operated by networks that offer discounts if you subscribe, Yoon said. Additionally, your utility or your state may offer a rebate for installing a home EV charger.

There is some maintenance that’s required on gas cars that you won’t need to worry about with an EV, such as oil changes. Brakes also may last longer on EVs because of what’s called regenerative braking, according to Kelley Blue Book. This involves electric motors being used to slow down the car and send the energy back to the battery. Generally, EVs require fewer maintenance costs.

However, EVs tend to wear tires’ tread faster due to the weight of the car, according to ConsumerReports, a nonprofit group that conducts independent testing of consumer products. 

“You typically have a certain number [of miles] you expect your tires to last. With an EV, that number is lower because of how heavy the cars are, and the weight contributes to tire degradation,” Yoon said. “I think it’s something that people should be aware of.”

If you’re in a collision and need repairs, the cost is generally higher for EVs than for gas cars. In 2025, fully gas-powered cars that were repaired cost an average of $5,105, according to Mitchell International, which specializes in claims and collision technology. That compares with $6,395 for fully battery-operated cars (i.e., excluding hybrids).

A new battery can cost anywhere from $5,000 to $15,000, according to Consumer Reports.

The average annual cost of insuring an EV is $4,058, compared with the average $2,732 to insure a gas car, according to a 2025 report from insurance website Insurify. 

However, the actual cost of a policy for an EV can vary widely by model, insurer and where you live, the report shows. And, generally speaking, a used EV will cost less to insure than a new one.