Electric vehicles were once seen as the future of the auto industry — the inevitable evolution of driving. But today, as analysts and consumers take stock of record-high car prices and changing buying habits, the real question isn’t whether automakers bet too heavily on EVs. It’s whether they misjudged how much people were willing to pay for any new car.

Over the past few years, the average new vehicle price in the United States has soared to around $50,000, according to Kelley Blue Book data. Electric models often cost even more, especially after certain federal tax incentives disappeared. Inflation contributes to this painful rise, but much of it stems from automakers’ assumptions in the 2010s — an era when buyers consistently traded up for bigger, more luxurious cars. Many manufacturers expected this pattern to continue indefinitely.

The landscape has changed. With interest rates at their highest levels in decades and persistent inflation shrinking disposable incomes, consumers are no longer chasing premium trims and luxury badges. Instead, they're seeking practicality, longevity, and most importantly, affordability. That shift is particularly noticeable among car shoppers exploring the used electric vehicle market.

A Coming Wave of Used EVs

New research from Edmunds suggests that 2026 could mark a turning point. Analysts expect a substantial influx of off-lease vehicles returning to the market, filling what has been a shortage of relatively new, lower-mileage used cars. The drop in leasing during 2022 created a thin used-car inventory for 2025, but leasing bounced back in 2023 — which means leases signed then will start ending in 2026. Edmunds estimates that roughly 400,000 additional lease returns will hit the market that year, providing welcome relief for budget-conscious buyers.

While the report doesn’t single out electric cars specifically, the implications are clear. Because such a large proportion of EVs in recent years were leased rather than purchased, a flood of used electric cars is inevitable. Edmunds data indicates that around 71% of EV sales involved leases, largely driven by a loophole in the federal EV tax credit program. By leasing, automakers could still take advantage of credits for imported EVs, which helped them offer highly attractive monthly deals.

Now, as those two- and three-year leases come to an end, the market will see a surge of off-lease EVs — many with low mileage and in excellent condition. And given that electric vehicles tend to depreciate faster than their gasoline counterparts (about 13% more, according to some data), prices on the used market have fallen significantly. What’s bad for first owners could become a rare opportunity for bargain hunters in the next two years.

Bargains on Modern Tech

Used EV shoppers today already have their pick of well-equipped models selling for under $30,000. The Ford Mustang Mach-E, for example, now averages around $29,000 according to CarGurus, down dramatically from its original sticker price. Even high-performance variants like the Mach-E GT — which once cost far more than a comparable gas SUV — are now within reach for many buyers.

Similarly, the Kia EV6, once retailing above $50,000, can now be found for about $27,000. For that price, drivers get a stylish crossover with roughly 300 miles of range, rapid fast-charging capability, and compatibility with Tesla’s Supercharger network (through adapters). Meanwhile, the Tesla Model Y — one of the most popular EVs in the world — is averaging just under $30,000 on the used market, a far cry from what new buyers have paid in recent years.

Across these models, depreciation is working in favor of the next generation of EV adopters. Early owners absorbed the sharp drop in value that accompanies EVs’ first few years, leaving secondhand buyers poised to enjoy cutting-edge performance, near-silent operation, and inexpensive fueling for a fraction of the original price.

Battery Concerns and Real-World Data

One lingering hesitation for used EV buyers is battery longevity. Replacing a pack can cost thousands, so it’s natural to worry. Fortunately, real-world studies and long-term fleet data are offering reassurance. EV batteries, particularly in models built in the past five years, have proven remarkably resilient. Many maintain over 80% of their original capacity well past 200,000 miles.

A lease-return EV typically has around 30,000 miles, which means its battery should be in excellent condition. Unless the previous owner abused the vehicle or it suffered extreme thermal stress, range degradation is likely minimal. And while the federal used-EV tax credit — worth up to $4,000 — was discontinued, the steep natural depreciation of these models is doing the affordability work for consumers instead.

The Outlook

By 2026, the combination of higher lease returns, price drops, and increased supply could make used EVs one of the best segments in the automotive market for value-conscious drivers. Buyers who might have been priced out of the electric segment altogether will gain access to vehicles offering advanced safety systems, robust performance, and low operating costs.

In a sense, the industry’s initial overconfidence in high sticker prices has created an unexpected silver lining. The very models that once symbolized exclusivity — long range, tech-packed electric crossovers and sedans — are poised to democratize clean driving for the masses.

The coming wave of used EVs won’t just reshape the market; it could accelerate the shift away from gasoline faster than automakers originally planned. Anyone considering a car purchase in 2026 might find themselves surprised. Going electric may soon be not only the environmentally sensible choice — but also the most economical one.