Electric vehicle market shifts as used EV prices drop

The electric vehicle (EV) market is undergoing a structural shift characterized by significant depreciation and a surge in affordable used options. By 2026, a massive influx of three-year-old leasing returns is expected to flood the secondary market, driving prices down. Market analysis indicates that more than half of used EVs listed by late 2026 will likely be priced below $30,000, with the price gap between used EVs and comparable gasoline vehicles shrinking to a record low of approximately $1,300.

In the European market, similar trends are observed, with the average price for three- to five-year-old EVs dropping to just over £20,000. Popular models for the used market include the Tesla Model 3 and Hyundai Ioniq 5.

Simultaneously, new vehicle leasing offers are appearing at low monthly rates, such as the Kia EV2 being listed for €99 per month on Carwow. However, these aggressive pricing models often come with significant caveats, including low annual mileage limits (e.g., 5,000 km per year) and substantial upfront down payments, which can increase the effective monthly cost.