Used EV Sales Jump 25% as Gas Prices Hit $6 in California

Marc Tan was spending too much filling up his Mercedes SUV, so the Irvine nurse made a switch that's saving him hundreds each month: he bought a used Tesla.

He's not alone. As war in Iran pushed California gas prices to nearly $6 per gallon this year, thousands of drivers discovered a money-saving option they hadn't considered before: used electric vehicles.

The numbers tell a surprising story. While new EV sales dropped 26% in February, used electric vehicle sales jumped 25% in the first quarter of 2026, according to Cox Automotive. Drivers are voting with their wallets, and they're choosing affordable used EVs over both new electric cars and used gas vehicles.

The math makes sense. Used EVs now cost about the same as used traditional cars, around $25,000 or less. But they come packed with modern technology like driver assistance, heated seats, and Apple CarPlay because most are less than four years old.

Electric vehicles lose value faster than gas cars, which sounds bad but creates a golden opportunity for buyers. A three-year-old EV that was expensive when new becomes a bargain on the used market.

The timing is perfect. A wave of leased EVs from 2023 is hitting dealerships now, just as drivers are looking for relief from the pump. That year saw peak enthusiasm for electric vehicles under the Biden administration, so plenty of quality options are available.

"You can get a pretty nice used EV for under $25,000, which is not easy to do on the market at large," said Jessica Caldwell, an auto analyst at Edmunds.

Used EVs often have lower mileage than gas cars too. Most EV owners avoid long road trips to skip charging stops, so these vehicles have less wear despite being several years old.

The Ripple Effect

California is leading this shift, and it's creating positive change beyond individual savings. The state's developed charging infrastructure makes EV ownership practical, and many residents are pairing their electric cars with home solar panels to power both vehicles and homes.

On social media, new EV owners are celebrating their switch. One Reddit user shared that charging their Ford Mustang Mach-E to 90% cost just $1.59 for six hours. Another wrote about the relief of "not having to deal with the ups and downs of gas prices."

The interest keeps growing. Cars.com saw searches for used EVs jump 25% between late February and late March, showing thousands more drivers are exploring their options.

Mark Schirmer from Cox Automotive sees this as a natural evolution. "It's not surprising that the used EV market is starting to accelerate, because it was about three or four years ago that the new one started accelerating," he said.

Even without federal tax credits that expired last September, the used EV market is thriving on pure economics: lower purchase prices, minimal fuel costs, and freedom from volatile gas prices.

Drivers like Tan are already enjoying the benefits, taking their kids to school and activities without wincing at the pump.