Growth Potential in the Used EV Market

The used electric vehicle (EV) market is projected to expand significantly in the coming years, currently capturing only 1.6% of the automotive market. Used EV sales have surged by 63.5% year-to-date compared to the previous year, driven by factors such as affordability, increased value, and government subsidies. Consumers often find that financing a used EV offers better value due to the vehicles being relatively newer and potentially providing equity over time, especially with incentives like the $4,000 tax credit from the Inflation Reduction Act for qualifying vehicles. However, concerns loom over the potential repeal of federal tax credits, which could impact demand, while a future influx of leased EV returns could further complicate pricing dynamics within the market.