The leases on hundreds of thousands of battery-powered cars and trucks will end in the next three years, and many will end up on used-car lots.
Electric vehicle sales have been slumping since September, when federal tax credits of up to $7,500 ended under a law championed by President Trump.
But the business of selling battery-powered cars is about to get something of a boost from waves of slightly used models that will be rolling onto dealer lots over the next three years.
Leases on some 300,000 two- and three-year-old electric vehicles will expire this year, up from just 123,000 in 2025, and many of those cars will return to the market as used cars. They will be followed by 600,000 in 2027 and nearly 660,000 in 2028, according to Cox Automotive, a market research firm.
The sudden influx is giving consumers affordable electric vehicle options when gasoline prices have surged past $4 a gallon and new-vehicle prices are near a record.
“These off-lease vehicles will increase consideration for E.V.s for a lot of used-car shoppers,” Stephanie Valdez Streaty, Cox’s director of insights, said. “A big reason a lot of consumers have stayed away from new E.V.s is the price. But these used vehicles offer a much better value proposition. And with higher gas prices, people are willing to give them a look.”
The great lease return could also provide a lift to sales and leases of new electric vehicles because many of the people giving up these cars will be looking for new rides. Some surveys have found that a large majority of people who drive electric cars say they would pick another one for their next vehicle.