Used EV sales are booming. How the cost of ownership compares to gas cars

Consumers shopping used car dealerships may notice that electric vehicles are increasingly carrying more affordable price tags.

Even as new electric vehicle purchases stagnate, used EV sales jumped 27.7 percent in March from a year ago and were 53.9 percent higher than February, according to the latest EV Monitor from Cox Automotive, an automotive industry services and software company.

While it’s hard to tease out how much of the sales growth is due to consumers switching to EVs amid high gas prices, at least one contributing factor is the influx of used EVs hitting dealer lots as leases end this year, giving buyers a greater choice of models.

“When we had the highest number of leases that happened between the tail end of 2022 until 2023, and since most leases last three years, all those cars … are going back to many companies,” said Joseph Yoon, a consumer data analyst at Edmunds, an automotive research site.

The share of EVs in the lease return calculation is expected to reach 8% by 2026, up from 2% by 2025, according to Edmunds data.

In March, 44% of used EVs sold for less than $25,000, said Stephanie Valdez Streaty, director of industry information for Cox Automotive. In December, that share was 39%.

The average price of a used EV in March was $34,653, down 6.1% from last year, according to Cox. The price is also just $1,102 more than the average price of $33,641 for a gasoline-powered car. That price gap has been narrowing: Last year, there was a premium of $3,923 for used EVs compared to pre-owned electric vehicles.

“Price parity is approaching,” said Valdez Streaty.

The sales increase comes despite the disappearance of the federal tax credit for buying new or used EVs that was created by the 2022 Inflation Reduction Act and was originally scheduled to last until 2032. The One Big Beautiful Bill Act, signed into law last July 4, ended the tax break – which was up to $7,500 for new EVs, new EVs used up to 000 EVs from the beginning of September – up to $4. 2025.

At the government level, however, there may still be a financial benefit. Many states have some type of incentive in place to benefit EV buyers, including tax credits or rebates, or utility rate reductions, according to a 2023 report from the National Conference of State Legislatures, a nonprofit group of two state legislators and their staff.

Yes, the price paid for any car is part of the cost of ownership. If you’re considering a used EV and will be moving from a gas-powered vehicle, here are some costs that may differ from what you’re used to.

Even if you wouldn’t pay for gas with an EV, you have to charge your car’s battery.

Generally, the least expensive way to do that, per kilowatt, is a home charger, experts say. The exact rate depends on where you live and the utility rates.

However, installing a charger can be expensive. While the unit itself may cost about $500 for a so-called Level 2 charger (which usually requires a 240-volt circuit), not every home can install it without an electrical upgrade, Yoon said. If so, installation can cost thousands of dollars, depending on what work needs to be done.

But if you can install a home charger, the cost of electricity is “a fraction of the cost of public charging,” Yoon said.

If you drive about 1,015 miles a month, charging an electric car at home would cost about $59.66 every month compared to a quick charger at a public charging station, where you’d pay $169 for that power, according to a report from Kelley Blue Book, an automotive research and pricing site. For a gas car to get 30 miles per gallon, the fuel cost would be $147.24 for that monthly mile. The estimate used a recent average gas price of $4.09 and an average cost per kilowatt hour of 17.65 cents and 50 cents for home use and public chargers, respectively.

Additionally, make sure you are aware of any local laws or restrictions on EV charging at home. For example, some homeowners associations may not allow it, Yoon said.

If you wouldn’t charge your EV at home, you may be able to find public charging stations operated by networks that offer discounts when you sign up, Yoon said. Additionally, your utility or state may offer you a rebate for installing a home EV charger.

There are certain maintenance requirements for gas vehicles that you don’t need to worry about with an EV, such as oil changes. Brakes can also last longer on EVs because of what is called regenerative braking, according to Kelley Blue Book. This includes the electric motors that are used to slow down the vehicle and send power to the battery. In general, EVs require fewer maintenance costs.

However, EVs tend to wear tires faster because of the vehicle’s weight, according to ConsumerReports, a nonprofit group that conducts independent reviews of consumer products.

“Usually you have a certain number [of miles] you expect your tires to last a long time. With an EV, that number is lower because of the weight of the vehicles, and weight contributes to tire damage,” Yoon said. “I think it’s something people should be aware of.”

Depending on where you live and what type of EV you own, it can be difficult to find a nearby auto repair shop if your vehicle is damaged in an accident, experts say. Or it may take a long time to find the required part if there is no strong aftermarket support for that particular vehicle.

If you get into a collision and need repairs, the cost is usually higher for EVs than electric vehicles. By 2025, fully serviced gas-powered vehicles cost an average of $5,105, according to Mitchell International, which specializes in applications and collision technology. That compares to $6,395 for all-electric vehicles (ie, excluding hybrids).

It is also worth making sure that the car battery is in good health.

“When you buy a used EV, you need to know the battery warranty,” said Valdez Streaty, of Cox Automotive.

Typically, EV batteries come with a warranty of eight or 10 years or $100,000 miles, he said. For cars that will be leased for three years, “there will still be a lot of warranty left,” he said.

“In most cases, those warranties are transferable,” he said, adding that you should request a vehicle battery health report.

A new battery can cost anywhere from $5,000 to $15,000, according to Consumer Reports.

Insurance for EVs tends to run higher than comparable gas vehicles due to higher repair costs.

The average annual cost to insure an EV is $4,058, compared to an average of $2,732 to insure a gas vehicle, according to a 2025 report from insurance website Insurify.

However, the actual cost of an EV policy can vary greatly by model, insurance and where you live, the report shows. And, in general, a used EV will cost less to insure than a new one.

Some EV owners pay for subscriptions that provide additional features to their vehicles, such as self-driving or driver assistance features or Internet service. Depending on the vehicle and feature, these premium options can cost anywhere from $10 or $20 to $100 per month.

However, you don’t need to use a car. “You can choose to have more premium options available to you with a subscription,” Yoon said. “But you wouldn’t need any subscriptions for the car to function properly. I don’t think it’s something the average consumer needs to worry about.”

If you’re buying a used EV that had a subscription, you’ll need to subscribe for those features to work, Valdez Streaty said.