How the Used EV Market Is Becoming a Dealership Opportunity

In the past, selling used EVs has been a difficult proposition for some dealerships with questions swirling around consumer demand and battery-life expectations of aging models. Today, affordability concerns and a large number of EV lease returns are making them more attractive to newcomers to the technology and those already driving them. In our third and most recent study of EV owners, while the majority (90%) say they’ll buy another EV, 64% also say they’ll consider a used EV when they’re ready to purchase again. 

This year, another interesting stat stood out: Only one in 10 (11%) of EV owners identified new technology as a top motivator when choosing a vehicle, roughly half the share of our previous study. This suggests the appeal of going electric isn’t dependent on having the latest EV model. For most EV owners, the technology they’re used to already works for them and that opens the door to a much broader range of vehicles, including more affordable used options. 

It turns out the market today looks good for used EV sales. Used EV prices increased 5.1% from January through June 2026, with the trend continuing into July. By mid-July, prices were up 7% from the beginning of the year. The gains have been particularly strong among more affordable EVs, suggesting that demand is increasingly reaching consumers who may have been priced out of the new EV market. 

For dealership leaders, however, the bigger story may not be what's happening to prices. It’s what EV owners are telling us about their future shopping decisions. 

The Generational Divide

Interest in used EVs is strongest among younger consumers with a clear decline across older age groups: 

• Generation Z (18 to 28) and Young Millennials (29 to 35): Highest interest in the used market; younger owners say they’d be interested in purchasing a used EV in the future
• Older Millennials (36 to 44): 68% interested 
• Gen X (ages 45 to 60): 47% interested 
• Baby Boomers and the Silent Generation (61+): 30% interested

For dealerships, that generational divide is worth watching. Younger owners aren’t only more open to used EVs, but they’re also the consumers who are likely to drive the market for years to come.

Introducing the Next Generation to Electric

Another finding reinforces the opportunity in younger generations. Seventy percent of EV owners say they’d recommend a used EV to a teenager or young adult in their household purchasing their first vehicle.

Recommending a used EV and actually buying one for a teenager are two very different things. Affordability, insurance costs, charging access and the practical needs of a young driver still have to be considered. But the sentiment is striking. EV owners aren't simply accepting the idea of used EVs for themselves. Many see them as an appropriate entry point for the next generation of drivers.

One owner summed up the appeal by noting that an affordable EV could teach a young driver responsibility because "you must be on top of charging and all." 

Prioritizing the Battery Warranty Conversation

If used EVs are going to become a larger part of dealership inventory, dealerships also have an opportunity to address one of the biggest sources of uncertainty for used shoppers: the battery. The good news is that battery concerns don't necessarily have to be a barrier. 

In fact, 86% of EV owners say they’d be more likely to consider purchasing a used EV if it came with an OEM-backed battery warranty. 

Agreement is high across every generation, ranging from 80% among boomers and silent generation owners to 100% among Gen Z. Most traditional automakers’ EV battery warranties are transferrable. That makes warranty coverage something dealerships should put front and center — not bury in the fine print.

What This Means for Dealerships

With affordability concerns continuing to shape the automotive market and elevated gas prices adding another reason for consumers to consider electric, used EVs can give dealerships another way to reach customers who may not be open, or able, to purchase new.

The market is still evolving, but the message from existing EV owners is becoming harder to ignore: They want more EVs, they're increasingly open to buying them used, and younger generations are showing some of the strongest interest.

For dealership leaders, the question may no longer be whether used EVs belong on the lot. It may be is the dealership doing enough to capture the customers who are already looking for them?