Electric cars have been around for over a century, with the one-horsepower 1888 Flocken Elektrowagen having been invented just a few years after the 1885 Benz Patent-Motorwagen, the first car ever made. Technological and infrastructural hurdles kept the electric car from hitting the market at scale for over a century, but, by the 2010s, we were finally there.
Or so we thought. EV adoption was fast-tracked in part by the Inflation Reduction Act of 2022, which secured those tax credits that had us scooping up electric cars at steep discounts of up to $7,500. Then, along came the Big Beautiful Bill of 2025, which scrapped the EV credits for consumers. And yet, nearly half of used EVs are still selling for under $25,000, the price limit for used electric cars to claim a $4,000 incentive.
44% of Used EVs Sell For Under $25,000
2023-2024 Tesla Model Y ExteriorTesla
A year ago, used car sellers had a reason to price their wares under $25,000. A used $25,000 EV that met all of the requirements for the tax incentives was actually selling for $21,000. And yet, used EVs are still selling at around that number, with close to half of all used models priced below the cut-off.
Here are some more quick stats worth knowing.
- New EV sales declined by 28% in Q1 2026.
- Used EV sales are on the rise, jumping 27.7% in March 2026, year-over-year.
- The average used EV listing price, in March 2026, was $34,653, just $1,102 more than a comparable used ICE car.
- Used EVs priced below $20,000 tend to be around 2 years newer than comparably-priced ICE cars, and typically have around 40,000 fewer miles on the odometer.
- Up to 400,000 EV lease returns are expected to hit the market in 2026, creating an abundance of supply.
- The average price of a new EV in March was around $54,508, a 6% drop from the year prior, and $5,288 more than the cost of a new car on average, at $49,353 in Q1.
New EVs have gotten a bit cheaper, in large part because we no longer have those EV credits, meaning that sellers and buyers can’t count on a tax credit to make the difference. Used EVs, meanwhile, are more accessible than ever, and with more inventory to pick from, nearly are half selling for less than the cost of a new Mazda CX-30.
We’ve Been Trained To Expect $25,000 Used EVs
Whether we’re talking cars or art or houses or a double cheeseburger, goods and services are worth exactly what people are willing to pay for them. Used EVs are such a steal right now, in part because the tax credits trained us to expect used EVs to sell at a certain price. A two-year-old ICE with 30,000 miles on the odometer is likely to sell for close to MSRP, while a comparable EV might leave the lot for a steal.
For used EVs, the IRA tax credit was calculated as a third of the price of purchase, up to a limit of $4,000. Almost a year since the credit was revoked, used cars are still frequently priced under $25,000 simply because that’s what drivers have been trained to expect.
Technically speaking, we’re still paying $4,000 more on the same sticker price than we would have with the credit in place. But, that’s all the more reason for sellers to keep prices nice and low in order to make up the difference.
There Are Some Excellent Used EVs Hitting The Market Right Now
2023-2024 Tesla Model Y Front Parked in Garage at Night w/ Door Open and Snow OutsideTesla
Checking in with our own price tracking tool, we’re seeing plenty of attractive used EVs selling for under $25,000. Looking at base models, here’s what we can turn up.
2022 Tesla Model 3 RWD – Trending Price Of $21,960
2023-2024 Tesla Model Y ExteriorTesla
The Tesla Model 3 is one of the EVs that put the segment on the map, proving that electric cars were more than a niche product for tech-addicted luxury car buyers. Tesla sold 192,440 Model 3s in the US last year, keeping on pace with leading combustion-based vehicles like the Jeep Wrangler and Subaru Forester.
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When we reviewed this model brand-new, we said that it does “a good job of trying to be as fun” as its gas-powered counterparts. We dug the responsive steering and driving modes. We liked the low center of gravity, with minimal body roll, and cushy absorption of small and large bumps in the road. It’s just a good, no-nonsense, all-around daily driver, and it’s made a convert out of many an anti-EV diehard.
2022 Hyundai Ioniq 5 SE Standard Range – Trending Price Of $21,724
Hyundai Ioniq 5, an electric car with big sound effects.Hyundai
Reviewing the 2022 Hyundai Ioniq 5 when this was a brand-new nameplate, our own Jared Rosenholtz suggested that the car would not only will the Ioniq 5 likely “be the car that permanently alters the perceptions of Hyundai… it will also make people consider making the switch to an EV.”
We’re primarily looking at entry-level models for this roundup, but it should be noted that the Ioniq 5 SE AWD is currently trending at $21,361, hundreds less than a 168-hp entry-level model, for a 320-hp all-wheel drive powertrain, meaning you’re getting nearly twice the power for the same price. That’s a no-brainer in our book.
2022 Kia EV6 Light RWD – Trending Price Of $21,063
Silver 2022 Kia EV6 GT rear endKia
We named the Kia EV6 car the “most comprehensive affordable EV on the market” back in 2022. Four years later, that’s still a fair description of the car, whether you’re talking new or used. We were impressed by the quiet cabin, composed feel on the road, and the quick takeoffs, even with just 167-hp to hand. The base model will hit 60 mph in under eight seconds, while the GT-Line can get there in under five.
As with the Ioniq 5, it’s worth investing in a mid-range model here. A 2022 Kia EV6 Wind AWD is currently trending at $24,360, with a 320-hp all-wheel drive powertrain hitting 60 mph at 5.1 seconds, according to Kia, although it has been tested at around 4.5 seconds.
Ford Mustang Mach-E Select RWD – Trending Price Of $24,044
2021 Ford Mustang Mach-E GTFord
The Ford Mustang Mach-E is the best car on this list when it comes to bang for buck. The Mach-E has proven to be a hot seller in large part because it’s a fun, practical vehicle selling at a fair price. When our own Gerhard Horn reviewed the car for 2022, he reported “thrilling acceleration numbers,” with 266 horsepower at its disposal, and a more planted feeling than you expect of a crossover.
Ultimately, if you’re expecting the electric equivalent of a real-deal Ford Mustang, the Mach-E can’t help but disappoint. What the car does, instead, is deliver a bit of muscle car spirit in a rear-wheel-drive family car. The cabin is quiet, the ride is comfortable, and it gets a minimum of 247 miles on a full charge.
It’s The Right Time To Go Electric (But There’s No Need To Rush)
2021 Ford Mustang Mach-E GT Performance exterior close-up shot of charging cable plugged inFord
Our advice would not necessarily be to “hurry up and buy!” Rather, we think this momentum will continue at least through the rest of the year. More and more leased EVs will be hitting the lots in the coming months, potentially outpacing increased demand and keeping prices nice and low.
The EV credits helped to create a boom period for electric vehicles. The market was flooded with new EVs, leased and purchased to early-adopters and drivers who wanted to take advantage of that new charging station down the street. Some of these models, like the Ford F-150 Lightning, are no longer with us, but that boom period created an abundance of electric vehicles.
In other words, even with demand for used EVs on the rise, we suspect that supply will tend to keep up with the market’s needs, at least into the immediate future. So take your time, do your research, and find a used EV that fits your life.
Sources: Cox Automotive, Ford, Kia, Hyundai, Tesla.
