Transformation of the U.S. Secondhand Car Market in 2025: Electronic Vehicles Reshaping Value, Availability, and Desire
The US secondhand car market is undergoing a significant transformation, with electric vehicles (EVs) playing a defining role in shaping its future. From 2025 to 2030, the market is expected to witness a marked increase in the availability and sales of used EVs.
By 2030, used EVs are projected to constitute around 15–20% of secondhand vehicle sales in developed markets, including the US. This increase reflects growing consumer acceptance and availability of used electric cars. The rise in used EV sales is largely due to improved price competitiveness, driven by ongoing battery cost reductions targeting about $100/kWh by 2026.
As of mid-2025, the used EV market is quietly thriving. Inventory levels are increasing while days on market are decreasing, indicating strong demand. Prices have been climbing after some earlier declines, signaling a healthy used EV market. Tesla models continue to hold value relatively well, although newer Teslas are depreciating faster due to active pricing strategies by the manufacturer.
The overall used car market remains robust in 2025, with strong consumer confidence and sales velocity. About two-thirds of surveyed consumers plan to buy cars within six months, supporting steady demand. This healthy demand environment benefits both conventional used cars and electric vehicles.
The growth in used EV sales is also being driven by the increasing adoption of new EVs. The US EV new sales share reached 10% in 2023 and is projected to grow further through 2030, which will increase the number of EVs entering the used car market as these vehicles age and are resold.
However, the transition to EVs is not without its challenges. Infrastructure gaps, consumer misconceptions, and supply chain risks, such as lithium shortages, could hinder progress. Nevertheless, efforts in battery recycling are expected to stabilize used EV pricing by lowering replacement costs.
The availability of public chargers in the US is crucial for EV adoption, but limited charging access in rural areas constrains secondhand EV demand. Economic factors such as inflation, high interest rates, and elevated new car prices are directing buyers toward more affordable used vehicles.
The secondhand car market will continue to be crucial in making mobility affordable and accessible. Online platforms like Carvana and Vroom are reshaping the buying experience with virtual inspections, transparent pricing, and access to vehicle histories. Tools like Recurrent and MyGreenCar help assess EV battery condition, fostering buyer confidence. Certified battery reports may become standard, like ICE vehicle history reports.
As global EV sales reach around 14 million units, used EV supply is increasing, and is expected to grow to 10-15% of used sales by 2030. This shift will transform the market dynamics, with used EVs becoming a significant and mainstream segment of the used vehicle landscape by the end of the decade.
Future trends point to a more competitive, greener, and digitally streamlined secondhand market. Policymakers and market actors must ensure the transition to EVs is inclusive, data-driven, and supported by robust ecosystems of service, diagnostics, and resale infrastructure. By doing so, they can ensure that the mobility economy of 2030 and beyond is not only greener but also more accessible and affordable for all.
- The growth in the adoption of new electric vehicles (EVs) is contributing to the rising demand for used EVs in the market.
- By 2030, used electric vehicles (EVs) are expected to make up around 15–20% of secondhand vehicle sales in developed markets like the US, reflecting increased consumer acceptance and the availability of used electric cars.
- As more consumers opt for new EVs, this will result in an increased number of EVs entering the used car market, creating a significant segment in the used vehicle landscape by the end of the decade.
- The improving price competitiveness of used EVs is being driven by ongoing battery cost reductions, with the goal of achieving about $100/kWh by 2026.
- Technology advancements are shaping the secondhand car market, with online platforms like Carvana and Vroom revolutionizing the buying experience by offering virtual inspections, transparent pricing, and access to vehicle histories.
- The future of the secondhand market points toward a more competitive, greener, and digitally streamlined industry, requiring policymakers and market actors to ensure a transition to EVs that is inclusive, data-driven, and supported by robust ecosystems of service, diagnostics, and resale infrastructure for a more accessible and affordable mobility economy in 2030 and beyond.
