Used EV sales are red hot despite end of federal tax credits
From this week’s (February 21, 2026) edition of the Car Dealership Guy (which is a pretty good source of current information…):
Despite federal tax credits ending, used EV sales have risen sharply, according to a first-quarter report from Recurrent.
That shift equals opportunity for U.S. dealers navigating affordability pressures and historically tighter overall used supply.
Driving the news: Recurrent’s Liz Najman told CDG News that EV sales are still increasing even after losing the federal incentives because they remain a fantastic value.
“There are a lot of shoppers, especially in [high cost of living] areas, who would not have qualified for the federal incentives, but are still looking for a great price on a great car,” Najman wrote in an email. “Used EVs will continue to meet that need, since they are generally newer cars with less wear and tear and better tech than comparatively priced used gas cars.”
For context: Compared with used ICE vehicle counterparts, used EVs can offer better value based on mileage and vehicle age, often at better price points, too. Under $20,000, the average EV is two years newer than comparable ICE vehicles and comes with 40,000 fewer miles.
As of January, 56% of used EV inventory costs less than $30,000.
Meanwhile, 55% of ALL used EVs are 2023 or newer.
About 39% of used EVs cost under $25,000.
Between the lines: With prices stabilizing and political influence calming, in addition to the expected supply surge of used EVs, the models enter “a more stable and mature market,” the report said.
And that could translate to increased sales for dealers.
Joel Bassam, with Easterns Automotive, told Recurrent that used EVs come “with technology and they come standard with all of these phenomenal features.”
“Your competitive vehicle will be an older car with more miles and less features,” Bassam said. “It’s hard to justify buying an ICE Camry versus a Polestar 2 if they’re the same price and the same year, just based on features alone. When you sit in those two vehicles, they just don’t feel like they’re in the same price point.”
And, in a market where gas-powered used vehicle prices have risen and sub-$20K options are scarce, that makes used EVs an attractive alternative, and the sales reports support it.
