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Used Car Prices Are Doing Something Unusual in 2026 - Here’s What It Means if You’re Shopping

The market is shifting in unexpected ways.

By Josh Koebert , Edited by Kristen Cervellini

Updated Oct. 10, 2026

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Used car shoppers are seeing a strange split in 2026. Prices for comparable used EVs rose 5% from January through June, according to Recurrent, even as a growing wave of off-lease EVs added more vehicles to the market.

Cox Automotive saw the same unusual combination in August: Off-lease returns continued expanding used EV availability, while average used EV listing prices remained 8.2% higher than a year earlier.

That runs against the usual supply-and-demand curve. More inventory normally puts downward pressure on prices. This time, strong demand has absorbed the extra EVs, while non-EV wholesale values were already below year-ago levels by August. Knowing how those two markets are moving will help you prepare yourself financially before you start shopping.

Here's what it all means if you're shopping for a used car now.

Why used EV demand is staying strong

One reason for the increased demand is fuel prices. The national average reached $4.48 a gallon on Sept. 24, the highest ever for that time of year, according to AAA. Per Recurrent, spikes in gas prices have historically pushed more shoppers toward used vehicles.

Price is another reason why so many people are looking at EVs. More than half of used EV inventory is priced below $30,000, and some of the fastest-selling models are among the most affordable. That puts an EV within reach for shoppers who may not want to pay new-car prices.

Demand also held up after the federal incentives disappeared. The used-EV credit, which had been worth up to $4,000, ended for vehicles acquired after Sept. 30, 2025. The new-EV credit ended at the same time.

The combination helps explain why the flood of lease returns has not translated into a fire sale. Recurrent expects as many as 500,000 EVs to come off lease in 2026, but buyers have been quick to absorb them.

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Gas-powered used cars are moving in a different direction

The broader used market is also getting more off-lease inventory. Edmunds projects lease returns will rise 25.7% in 2026, adding nearly half a million vehicles compared with last year.

Unlike used EVs, conventional vehicles are starting to show more price weakness at the wholesale level. Cox Automotive's Mid-August Manheim Used Vehicle Value Index data showed non-EV values down 1.4% from a year earlier and 1.1% from July.

Retail prices are still high. The average used vehicle was listed for $27,239 in August, the highest level since December 2022. However, dealers also had 1.3% more used inventory than a year earlier, while the retail sales pace was 3.2% slower.

That matters when you negotiate. A dealer may still start with an aggressive asking price, but more comparable vehicles on nearby lots make it easier to walk away and keep shopping.

A used EV can still be a good value

Used EV shoppers do have one big advantage: the price gap versus new. The average used EV was listed at $37,441 in August. The average transaction price for a new EV was $54,754, a difference of more than $17,000.

What you should not expect is unlimited bargaining room. Recurrent found that a 2023 Chevrolet Bolt EV spent a median of just 13 days on the market this summer. So, if you find the right model at a competitive price, the huge increase in lease returns is not necessarily a reason to wait for a major discount.

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What to look for when buying a used EV

Start with battery health. Ask the seller or dealer for a battery health report, then verify how much factory battery coverage remains.
Kelley Blue Book says EV battery warranties commonly run for eight years or 100,000 miles, although transfer rules vary. Calling the manufacturer with the VIN is a simple way to confirm what coverage is left.
Range deserves a closer look too. Recurrent found that three-year-old Teslas typically deliver about 90% of their original EPA-rated range, while Hyundai, Kia, and Toyota EVs routinely outperform their ratings.
Finally, make sure charging fits your life. Public charging averaged 42 cents per kilowatt-hour nationally on Sept. 24, according to AAA. If you cannot charge at home, Kelley Blue Book recommends testing the car at a public charging station before buying to ensure the setup works for you.

Use the gas-car market as leverage

If you are shopping for a gas-powered vehicle, get financing lined up before going to a dealership.

Auto credit access reached its highest level since November 2015 in August, according to Cox Automotive. The Consumer Financial Protection Bureau also recommends shopping among lenders, since comparing preapprovals may save you money. That does not mean borrowing is cheap. Cox put the average auto-loan rate at 10.99% in August, and a record 31.3% of loans were extended beyond 72 months.

Negotiate the total vehicle price rather than the monthly payment. With more used inventory on dealer lots than a year ago, get written offers from multiple sellers and use similar listings as leverage. If one dealer will not move, you have more reason to keep looking.

Bottom line

Used EV shoppers have more choices in 2026, but strong demand means extra supply has not led to the steep discounts buyers might expect. A used EV can still save you thousands compared with a new one, but battery condition, real-world range, and charging access need to be part of the decision.

Affordable options are still tight across the broader used market. Edmunds found that vehicles priced below $20,000 accounted for just 31.8% of used-vehicle sales in the second quarter of 2026, down from 55.2% in 2019. Whatever you buy, compare the total price and financing before signing, and get quotes on the exact model to save money on car insurance.

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