The most recent data on electric vehicle (EV) sales paints a stark picture for new models – they're in decline. Sales have fallen by 28% year-over-year since the Trump administration axed the $7,500 consumer tax credit, according to Cox Automotive.

However, the story is different when it comes to used EVs. These are experiencing a surge, with first-quarter sales increasing by 12%. This upward trend isn't just a short-term blip; between the fourth and first quarters of this year, sales jumped an impressive 17%.

The rising cost of gas – currently above $4 per gallon – is driving some of this interest. But there's another factor at play: expiring EV leases. In early 2020s, leasing these vehicles was popular and now with those leases ending, hundreds of thousands of pre-owned EVs are flooding the market.

By the end of the year, EVs will account for 15% of all off-lease vehicles, a significant doubling from the first quarter's 7.7%. The principle of supply and demand has been in full effect; with more used EVs hitting the road, prices have become more competitive against internal combustion engine (ICE) vehicles.

The average price for a used EV is now $34,821 compared to $33,487 for ICE equivalents. This convergence of costs could be a tipping point towards wider adoption of EVs, as affordability becomes an increasingly compelling factor in consumer decisions.