An influx of used electric vehicles (EVs) is anticipated to significantly impact car prices over the next three years. According to Cox Automotive, by 2028, over one million used EVs could enter the market. Most leased vehicles eventually become part of the used car pool, making them a more affordable option for many buyers.

In the US, as of 2024, some 76% of cars sold are used, driven by their lower cost compared to new ones. The average price of a new vehicle is £31,906, whereas a used one costs just £18,500.

AutoNation, a major dealership chain, advertises a 2023 Hyundai Ioniq 5 SUV for £28,000 – significantly cheaper than the initial asking price of £47,000 three years ago. This disparity is especially pronounced in the EV market, where used cars are often priced similarly to their new counterparts.

However, this abundance may not last forever. Sales and leases of new EVs dropped by 36% from the end of 2024 to the end of 2025, with a further decline in the first quarter of 2026. As these used vehicles become more prevalent, the market could see a shift back towards new car purchases.