It’s Already Being Called The Great EV Return
More than 300,000 electric vehicles are expected to come off lease in 2026 alone, and they are about to flood the used car market. For buyers, that surge could finally create the kind of EV bargains that have been missing for years. Three years ago, EV leasing surged as incentives peaked and early adopters jumped in. Now those three-year contracts are ending, and thousands of those vehicles are returning to dealerships almost all at once.
Dave Thomas, senior manager of industry insights at CDK Global, the software company that powers a huge share of dealership operations in the United States, talks about his reading of the dealership data on Electrek. When someone with access to hard data like that starts talking about value and affordability, we tend to pay attention.
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Why Used EVs Are Suddenly Great Value
The opportunity comes down to depreciation. A three-year-old gasoline car from Honda or Toyota typically holds its value really well. That’s a good thing… until you’re the one shopping for it. Strong residual values mean the sticker price on those used vehicles stays stubbornly high. Electric cars have followed a very different depreciation curve. Because EV technology is evolving quickly and new models arrive with better range and software every year, older electric vehicles tend to lose value faster. That drop in resale value may frustrate original owners, but it works entirely in favor of the second buyer.
Someone shopping with a $20,000 budget in the traditional used car market is often looking at higher-mileage vehicles or older model years. In the used EV market, that same budget could land something far newer and better equipped, potentially even a low-mileage premium EV such as an Audi e-tron, Tesla Model 3, or Hyundai Ioniq 5, that has depreciated faster than expected. The result is a rare moment where the used EV market may offer better value than comparable ICE vehicles.
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Used EVs Make Sense, On Both Sides of The Table
The surge in lease returns is also appealing for dealers. Electric vehicles have fewer moving parts, which means there is usually less mechanical wear when they come back from a three-year lease. That translates to lower reconditioning costs before the car can go on sale, not to mention EVs are spending less time on lots than gas-powered cars.
For shoppers considering a used electric vehicle, focus on three-year-old lease returns. These cars tend to have relatively low mileage and predictable maintenance histories. Check the remaining battery warranty, too. Most EV manufacturers offer battery warranties around eight years or 100,000 miles, meaning many lease-return vehicles still have significant coverage left. For buyers previously priced out of electric cars, as well as budget shoppers, the Great EV Return may finally give them options that they can actually afford.