The email from the dealership was blunt: “Your lease is up.” Three years vanished. Now you’re staring at a nearly-new electric vehicle with rapidly depreciating value. What if that depreciation could be your gain?
New research suggests that buying a used EV in 2026 could be the smartest financial move you make all year. This isn’t just hype; it’s data.
According to a study published Jan. 27, a three-year-old electric vehicle is cheaper to own than a new or used gasoline car over a 10-year period. The study was sponsored by the Responsible Battery Coalition, the State of Michigan Department of Labor and Economic Opportunity, and the University of Michigan Electric Vehicle Center.
The Real Cost of Ownership
I saw a guy at a charging station the other day, meticulously tracking his kilowatt usage on a spreadsheet. He knew something most people don’t: the initial sticker price is just the beginning.
The study factored in everything: purchase price, the installation cost of a Level 2 home charger, fuel, insurance, routine maintenance, and the vehicle’s projected value after ten years. EVs depreciate rapidly in their first three years. But after that initial drop, the depreciation curve flattens, mirroring that of gasoline or hybrid vehicles.
The kicker? Gasoline-powered cars require more maintenance as they age, potentially costing owners an extra $3,700 (€3,400). The study compared different vehicle types and found that the savings range from $6,700 (€6,200) to $13,000 (€12,000) over ten years in favor of EVs.
Are older electric cars worth buying?
They just might be. J.D. Power’s Tyson Jominy recently told Gizmodo that the used EV market is about to be flooded with off-lease vehicles like the Tesla Model Y and Volkswagen ID.4. The result is simple: lower prices.
The Coming Tsunami of Used EVs
I remember when the first Nissan Leafs started showing up on used car lots. No one knew what they were worth.
Analysts are predicting a surge of three-year-old, off-lease EVs hitting the used car market this year. Heavily subsidized leases on models like the Tesla Model Y and Volkswagen ID.4, along with discontinued vehicles such as the Ford F-150 Lightning and Nissan Ariya, are creating a perfect storm for buyers. Dealers, Jominy says, “will still want those cars off their lots.”
What problems do used electric cars have?
It depends. The average age of a car on U.S. roads is nearly 13 years, according to S&P Global. Some of the oldest Nissan Leafs and soon-to-be-discontinued Tesla Model S vehicles are reaching that age, with over 320,000 kilometers on the odometer. The most common problem? Degradation of the battery.
Early adopters of Tesla Model 3 and Model Y vehicles are already trading them in, making them attractive used options. By 2026, the market will be saturated with used EVs that salespeople will be eager to move. This situation is a boon for savvy buyers willing to do their homework.
The 2026 Electric Car Gold Rush
Think of the used EV market as a gold rush. The initial investors have already staked their claims, and now it’s time for the bargain hunters to sift through the tailings.
Here’s the truth: buying a used EV isn’t like buying a used gasoline car. The technology is different. The maintenance is different. The depreciation is different.
How long do electric car batteries really last?
That’s the million-dollar question. Battery longevity is improving, and better charging habits can extend battery life. But it’s still a concern. However, the study suggests that even with potential battery degradation, the overall cost of ownership for a used EV is still lower than that of a gasoline car. Consider getting a third-party battery test before you buy.
The window sticker shock of a new EV might be intimidating, but a used EV represents a chance to leap into the future of driving without emptying your bank account. As long as you are prepared to do your homework, that is.
Is the fear of battery degradation overshadowing the potential for significant savings?