Leveraged Electric Vehicles for Smart and Dedicated Dealerships
In a groundbreaking prediction, Jimmy Douglas, the founder and CEO of Plug, has forecasted that used battery-electric vehicle (BEV) sales could surpass new EV sales by 2026. This trend is expected to become more apparent in 2025, as used BEV sales are projected to grow at an astonishing rate.
According to recent data, used BEV sales are projected to exceed 100,000 units per quarter by the second quarter of 2025, a significant leap from the previous year. This growth is attributed to the $4,000 federal tax credit, which is boosting demand and affordability for used EVs. In May 2025 alone, used EV sales increased by 32.1% year-over-year, far outpacing the growth in new EV sales at that time.
On the other hand, the new EV market, encompassing battery electric and plug-in hybrids, is growing at a steady pace but more moderately. Global new EV sales are expected to increase by 25% in 2025 over 2024, with nearly 22 million new EVs sold worldwide in 2025. However, growth rates vary by region, with China leading the charge and the U.S. market growth slowing compared to earlier projections.
Looking ahead to 2026, used BEV sales are expected to continue their robust growth, driven by expanding market share and affordability. New EV sales, while still increasing, are predicted to do so at a more moderate pace, with growth rates potentially moderating from peak years.
A summary comparison of the projected growth rates for 2025 and 2026 shows that used BEV sales are expected to grow faster than new EV sales, driven by factors such as federal tax credits, affordability, lease returns, and consumer price sensitivity. In contrast, new EV sales growth is attributed to falling battery costs, policy incentives, and ramped-up production.
As comfort with the idea of a used EV increases, affordability will be increasingly found in the used market. Currently, a small fraction of dealers sell one-third of all used BEVs, while only 2% of dealers currently participate in the used EV market.
To capitalise on the increasing demand for used EVs, dealers must invest in sales infrastructure, focusing on training sales teams to discuss battery life, warranty coverage, and home charging solutions. Diversifying used-EV selection beyond the brand offered by their new-car franchise is also recommended.
It's worth noting that the two leading brands being snapped up in these auctions are Tesla and Rivian. However, European adoption of new EVs is about double that of the U.S. due to affordability, with numerous EVs priced under €40,000 in Europe.
If Congress decides to roll back the $7,500 tax credit supporting new- and used-EV sales, growth in new EV sales is expected to slow further in 2026. In conclusion, the used BEV market is poised for significant growth in the coming years, with used BEV sales expected to outpace new EV sales in 2025.
1.The auto retail industry, particularly used battery-electric vehicle (BEV) sales, is anticipated to experience a phenomenal surge in 2025, with projections suggesting that they could surpass new EV sales in the same year.
- As more consumers gravitate towards affordability and used BEVs begin to outpace new EV sales, automotive businesses need to invest in sales infrastructure, such as training sales teams to discuss battery life, warranty coverage, and home charging solutions.
- The growth in the used BEV market is not only driven by the federal tax credit but also by factors such as lease returns, consumer price sensitivity, and increased comfort with the idea of a used EV, a trend that is also being fuelled by technology advancements in the transportation sector.
