Experts Predict Used Electric Vehicles Will Be Best Car Deal in 20 Years

A surge in inventory of off-lease EVs is expected to flood car lots in 2026 and 2027, driving down prices.

Feb. 3, 2026 at 3:23pm

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Experts say that 2026 will be the perfect time to buy a used electric vehicle, as a surge of off-lease EVs is expected to flood the market and drive down prices. The $7,500 federal tax credit for new EVs expired in 2023, leading to a spike in leasing. Now, as those two- and three-year leases end, a glut of used EVs will become available, making them the "best deal" on the market in 20 years according to an automotive expert.

Why it matters

The influx of affordable used EVs could help drive wider adoption of electric vehicles, as the upfront cost has been a major barrier for many consumers. However, it may also impact the resale value of current EV owners who are looking to trade in their vehicles.

The details

The $7,500 federal tax credit for new EVs expired in 2023, leading to a spike in leasing as more people took advantage of the incentive. By the end of 2024, over 50% of new EVs were being leased, up from just 12% when the credit was first offered. Now, as those two- and three-year leases come to an end, a surge of used EVs will soon flood car lots, likely continuing through 2027. This oversupply is expected to drive down prices, making used EVs the "best deal" on the market in 20 years according to automotive expert Brian Moody.

  • In 2023, a $7,500 federal tax credit for new EVs kicked in.
  • By the end of 2024, over 50% of new EVs were being leased, up from 12% when the credit was first offered.
  • The two- and three-year leases on those EVs are now coming to an end in 2026.

The players

Brian Moody

Automotive expert and analyst for Kelley Blue Book.

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What they’re saying

“I would say a used electric car is the best deal you're gonna get on a car, say, for the past 20 years. It's almost impossible to find something as new with as compelling technology and as current safety as any other car on the road. It's just that the price is so compelling.”

— Brian Moody, Automotive expert and analyst (nbcsandiego.com)

“Some hybrids today can get close to 60 miles per gallon. So, hybrids are the kind of car that most people say they can make the most use of because it uses the existing infrastructure, and some of them can even drive on electricity alone for a period of time.”

— Brian Moody, Automotive expert and analyst (nbcsandiego.com)

What’s next

If you currently own an electric vehicle that you might be trading in for another car down the road, you should probably consider doing it sooner, as the value may decrease once all of those off-lease EVs hit the market.

The takeaway

The influx of affordable used electric vehicles in 2026 and 2027 could help drive wider adoption of EVs, as the upfront cost has been a major barrier. However, it may also impact the resale value for current EV owners looking to trade in their vehicles.