Sales of used electric vehicles continued their surge in July, jumping 7.7 percent from June and 10.1 percent compared to last year, according to data Cox Automotive released today. New EVs, in contrast, saw only modest 3.2 percent month-over-month growth and were down 41.5 percent from 2025.
“The used market is so hot,” Scott Case, CEO of Recurrent, a company that provides data about EVs, told Grist. Dealers he talks to say fuel costs are a key reason people are going electric, and gas prices climbed again in July due to the ongoing war with Iran. “The used EV market is pretty much uniquely the beneficiary of the war.”
Driving an EV saves money on gas and maintenance, such as oil changes. Recent research has shown the switch also brings significant emissions savings, even when trading in a relatively new internal combustion car. But EVs often come with a higher sticker price.
On average, new EVs cost $6,477 more than their internal combustion counterparts. “In today’s economy, with high interest and wavering affordability, that’s a very material difference,” said Jimmy Douglas, the founder and CEO of Plug, a wholesale marketplace focused on EVs. “A lot of it comes down to affordability.”
The gap between used electric and gas cars is much narrower, at $2,967, making them an attractive option. “There are so many used EVs available at a good price point,” Stephanie Valdez Streaty, director of industry insights at Cox Automotive, told Grist. With a glut of these cars expected to come off lease in the next few years, the secondary market should remain abundant and teeming with deals.
Tesla’s Model Y remains the best-selling new electric, even as a number of other American automakers have retreated from electric options. “The party has completely stopped,” said Case, noting that Stellantis, which produces brands such as Dodge and Jeep, has taken an especially dramatic step away from the technology. “The Japanese models have been coming in like a freight train.”
This latest data arrives a year after Congress passed the One Big Beautiful Bill.That legislation, among other things, repealed tax credits for new and used electric vehicles, which were $7,500 and $4,000 respectively. When those ended last fall, sales of EVs plummeted. While that was expected, Case said that the used market’s resilience has been a surprise.
“It’s a huge rebate that’s not there anymore,” he said. But sales have kept growing, especially since spring, when President Donald J. Trump and Israel launched what has become a months-long war against Iran that led to the closure of the Strait of Hormuz and a reduction in the flow of Persian Gulf oil.
“Literally no one would have predicted that after a year with no $4,000 rebates on the table, that we’d now be doing 10 percent more sales,” said Case. “That defies expectation.”
Even with the used-car bright spot, the EV market in North America lags far behind the rest of the world. “July marked the return of more significant, negative year-on-year growth rates,” said George Whitcombe, senior EV analyst for Benchmark Mineral Intelligence, in a statement. According to the organization’s data, North American EV sales are down 18 percent so far this year, compared to a 28 percent gain in Europe. The International Energy Agency reported that second quarter sales reached record levels in 50 countries.
There are signs, however, that the new EV market in the United States is stabilizing. For example, month-over-month growth continues in July. Also, the cars sell almost as quickly as those with internal combustion engines. “There is no real problem in selling the new EV inventory that’s on the market,” said Douglas. “It’s no less healthy than the new gas car market right now.”
Regardless, the used EVs appear poised to remain a catalyst for the electric market. “Even though it’s still a small share of the overall market, it’s the trajectory,” said Streaty. “I think it’ll continue to grow.”
This story was originally published by Grist with the headline The market for used EVs ‘is so hot’ right now on Aug 17, 2026.
