2026 will be the ‘year of the used EV,’ analyst says. Here’s why
Charging an electric vehicle.
Tashdique Mehtaj Ahmed | Moment | Getty Images
The price of used electric vehicles has come down to levels comparable with gasoline cars, a dynamic poised to boost their popularity despite the loss of a federal tax incentive for EVs, according to auto analysts.
In August, the price premium for used EVs relative to used vehicles with a gasoline engine narrowed to just $897, on average, the smallest price gap on record, according to Cox Automotive.
The average list price for used EVs was $34,704 in August, down 1.1% from July and 2.6% from a year earlier, it found.
This price tag excludes a federal tax credit that ended after Sept. 30, after Republicans scrapped it as part of a multitrillion-dollar legislative package in July. That tax break was worth up to $4,000 for used EVs (and $7,500 for new EVs) — meaning the average used EV cost less than its gasoline counterpart after incentives.
Consumers bought nearly 41,000 used EVs in August, up 59% from a year earlier, Cox data shows.
Analysts expect that momentum to continue, driven in large part by affordability even absent the federal tax break.
2026 will be “the year of the used EV,” said Scott Case, the CEO of Recurrent, an EV market research firm.
Why leased EVs help drive down prices for used ones
Automakers leaned heavily on leasing in recent years to move electric vehicles, analysts said.
Since 2023, more than 1.1 million EVs have been leased, Stephanie Valdez Streaty, director of industry insights at Cox, wrote in an analysis last month.
This was partly due to the so-called leasing “loophole.” Consumers could more easily claim a $7,500 tax credit when leasing a new EV than buying one, the latter of which came with more restrictions.
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Now, a large volume of electric vehicles are reaching the end of their lease term. Lease returns and trade-ins are boosting the supply of used EVs, driving down prices, Valdez Streaty wrote.
In fact, 14 used EV models had a lower average price than their gasoline counterparts in August, according to Valdez Streaty.
“For mainstream buyers, EV affordability in the used-vehicle space is finally within reach,” Valdez Streaty wrote.
The top-selling models — Tesla Model 3, Tesla Model Y, the General Motors-owned Chevrolet Bolt EV, Tesla Model S and Ford Mustang Mach-E — all had prices below the market average in August, which shows their appeal to budget-conscious buyers consumers, Valdez Streaty wrote.
For example, two high-volume models — the Renault-owned Nissan Leaf and the Tesla Model 3 — carried an average price tag of $12,890 and $23,278, respectively, according to Valdez Streaty. The Chevrolet Bolt EV was $14,705.
Not the ‘end of affordable EVs’
Valentinrussanov | E+ | Getty Images
By contrast, the market for new electric vehicles is likely to struggle for the rest of 2025 and into next year, analysts said.
Average new EV prices in August were $57,245, representing a nearly $9,100 premium over the average gasoline car, according to Cox Automotive.
That doesn’t include the now-expired $7,500 federal tax credit, which brought new EVs closer to price parity with their gasoline counterparts.
“The tax credit helped get a lot of butts in seats,” Aaron Bragman, Detroit bureau chief for Cars.com, told CNBC. “It helped a lot of people get into EVs.”
However, there are still some relatively affordable new electric vehicles even without the federal tax break, he said.
For example, the 2025 Nissan Leaf has a starting price under $30,000, Bragman said.
A few others — the Fiat 500e, Hyundai Kona Electric and Chevrolet Equinox EV — have a starting price under $35,000, according to Cars.com.
“The end of the [tax] credit doesn’t mean the end of affordable EVs,” Bragman wrote in an e-mail. “Brands like Nissan, Chevrolet, and Hyundai are rolling out lower-priced options, and used EVs are getting more attractive too, with plenty available under $25,000. Battery costs are also coming down, which will help keep prices competitive in the long run.”
For mainstream buyers, EV affordability in the used-vehicle space is finally within reach.
Stephanie Valdez Streaty
director of industry insights at Cox Automotive
In fact, the tax break’s expiration doesn’t seem to negatively influence interest among prospective new-car buyers, according to J.D. Power.
More than half of new-vehicle shoppers are either “very likely” (24%) or “somewhat likely” (35%) to consider buying an EV in the next 12 months, rates that have remained fairly consistent for the past year, according to a September study by J.D. Power.
Total cost of ownership
Consumers should focus on total cost of ownership rather than upfront purchase price when choosing a car, analysts said.
This means a car owner should account not only for upfront purchase price, but for the full suite of financial costs, like repairs, maintenance and fuel.
Such costs are generally cheaper for electric vehicles, and can therefore make the lifetime cost of EV ownership less expensive than that of a gasoline-powered car, according to studies and industry experts.
“I think this is the bigger argument” in favor of EVs, said Case of Recurrent.
Factors like geography and charging accessibility are important here, analysts said. For example, relying heavily on public charging networks may flip the economic calculus, since public charging is often more expensive than charging at home, they said.
State incentives are still available
While the federal electric vehicle tax incentive has disappeared, there are additional incentives available from utilities, automakers, and state and local governments that can, in some instances, shave thousands of dollars off an EV’s upfront cost, experts said.
California, Colorado, Connecticut, Maine, Massachusetts, New Jersey, New York and Rhode Island are among the states that offer relatively generous incentives, analysts said.
“There are a lot of state supports still for these EVs,” said Al Salas, CEO of Eco Auto, an EV dealer with operations in Massachusetts and Washington state.
![Classic Jeep Grand Wagoneer gets a battery electric makeover [video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/11/grand-wagoneer_EV_2.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
Texas-based tuning firm Vigilante 4×4 is known for its wild, high-horsepower Jeep SJ Hemi restomods – but they’re more than just a hot rod shop. To prove it, they’ve developed a bespoke, all-electric skateboard chassis designed to turn the classic Jeep Grand Wagoneer into a modern, desirable electric SUV.
The scope of the Vigilante 4×4 electric chassis project is truly impressive. More than just a Jeep SJ frame with an electric drive train bolted in, the chassis is a completely fresh design that utilizes precise 3D scans of the original SJ Wagoneers, Grand Wagoneers, and J-Trucks to establish hard points, then fitted with low-slung battery packs to give the electric restomods superior weight balance, a lower center of gravity, and objectively improved ride and handling compared to its classic, ICE-powered forefathers.
The result is a purpose-built platform that delivers power to the wheels through a dual-motor system – one mounted in the front, and one at the rear – to provide a permanent, infinitely variable four-wheel drive system that offers both on-road performance and the kind of off-road capability that made the Grand Wagoneer famous in the first place.
Vigilante 4×4 electric Jeep SJ
“This isn’t a replacement for our Vigilante HEMI offerings,” reads the official copy. “It’s a total revisit of the Vigilante platform under electric power.”
The company emphasizes that its new chassis is still in the prototype stages. As such, there are no specs, there is no pricing, there are no range estimates. Despite it all, the response from Jeep enthusiasts has already been strong. “Keep in mind this is our first prototype,” a spokesperson said. “There’s still a lot of work to be done – but the journey has begun.”
Electrek’s Take
Retro done wrong – think the Dodge Charger Daytona EV or VW ID.Buzz – is a disaster. Always. If that nostalgic tone is just a little bit off, the song doesn’t work. The heartstrings don’t pull. Done right, however, the siren song of nostalgia will have you putting a second mortgage on your house to put a Singer Porsche or ICON Bronco in your garage.
It’s too soon to tell what side of that line the Vigilante 4×4 Jeep SJ will eventually fall, but one thing (at least) is certain: it’s closer to the mark than that Wagoneer S.
SOURCE | IMAGES: Vigilante 4×4, via Mopar Insiders.
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EQORE, a distributed battery storage startup based in Somerville, Massachusetts, has raised $1.7 million in seed funding to help industrial buildings tackle rising electricity costs. The round was oversubscribed and includes backing from the Massachusetts Clean Energy Center (MassCEC), Henry Ford III of Ford Motor Company, and Jonathan Kraft of The Kraft Group.
The timing couldn’t be more relevant. Data centers are booming, and that demand is slamming an already stressed grid. Big, utility-scale batteries help at the grid level, but they can’t fix the bottlenecks happening on local distribution networks. That’s where onsite storage steps in — storing energy when demand is low and discharging it when demand spikes, which helps stabilize costs for both the grid and the businesses using it.
MassCEC’s head of investments, Susan Stewart, said, “What excites us the most about EQORE’s technology is the dual impact: grid support and customer savings.” She noted that commercial and industrial buildings are ideal hosts for battery storage, but haven’t gotten much attention until now. “EQORE is closing that gap.”
Investor Randolph Mann highlighted what makes the company stand out: “By uniting advanced controls with high‑resolution metering and true end‑to‑end service, EQORE finally makes commercial behind-the-meter storage effortless and financially compelling for businesses.”
EQORE comes out of MIT’s Sandbox program and delta v accelerator and is currently part of the Harvard Climate Entrepreneurs Circle incubator. CEO and cofounder Valeriia Tyshchenko, a third‑generation engineer from Ukraine and MIT graduate, said the new funding will help the company scale alongside its existing revenue.
With the seed round closed, EQORE plans to grow its team and ramp up battery deployments at energy-intensive manufacturing facilities. The company doesn’t just install batteries; it operates them. Its autonomous software shifts when a facility uses power based on market conditions and utility incentives, reshaping load in real-time without disrupting operations.
Read more: Battery boom: 5.6 GW of US energy storage added in Q2
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![Check out Hyundai's cool new off-road electric SUV concept [Images]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/11/Hyundai-off-road-SUV.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Hyundai took the sheets of its new off-road electric SUV, the Crater Concept, at the LA Auto Show. Here’s our first look at the compact off-roader.
Meet Hyundai’s new off-road SUV, the Crater Concept
We knew it was coming after Hyundai teased the off-road SUV earlier this week, hidden under a drape. Hyundai took the sheets off the Crater Concept at the LA Auto Show on Thursday, giving us our first real look at the rugged off-roader.
Hyundai refers to it as a compact off-road SUV that’s inspired by extreme events. The concept was brought to life at the Hyundai America Technical Center in Irvine, California.
The off-road SUV draws design elements from Hyundai’s Extra Rugged Terrain (XRT) models, such as the IONIQ 5 XRT, Santa Cruz XRT, and the new Pallisade XRT Pro.
Although it’s a concept, Hyundai said the Crater Concept is a testament to its commitment to designing future XRT vehicles that are more functional, more capable, and more emotional.
“CRATER began with a question: ‘What does freedom look like?’ This vehicle stands as our answer,” Hyundai’s global design boss, SangYup Lee said.
The off-road SUV features Hyundai’s new Art of Steel design theme, first showcased on the THREE concept at the Munich Motor Show in September.
Hyundai said the design team was guided by one clear goal: To create a rugged and capable vehicle that’s designed to go anywhere. The Crater Concept embodies that vision with added wide skid plates, 33″ off-road tires, limb risers, rocker panels, and a roof platform.
Hyundai designed the interior for “tech-savvy adventure seekers,” with a singular design centered around a high-brow crash pad that stretches across the dashboard.
The concept also swaps the traditional infotainment setup for a head-up display that spans the entire front window, which Hyundai said includes a live rearview camera.
Hyundai’s off-roader includes a new Off-Road Controller for front and rear locking differentials, as well as a terrain selector with modes including Sand, Snow, and Mud. Other off-road features include downhill brake control, trailer brake control, a compass, and an altimeter.
Although Hyundai said it was electric, it didn’t reveal any further details about the powertrain. The off-road SUV could be a battery-electric or fuel-cell-electric vehicle.
Like the new Nexo, Hyundai’s hydrogen fuel cell vehicle, the concept features “HTWO” lamps exclusive to its FCEVs.
Earlier this week, the design team at Hyundai Design North America also introduced its new design and ideation studio codenamed “The Sandbox.” The creative design studio is set to serve as a global hub for future XRT vehicles and gear.
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