In a unique turn of events, a used car dealership in Southern California has become a hotspot for electric vehicle enthusiasts. Recently, Nicholas Beiza, a sales representative at Fullerton Ford, received an unexpected inquiry from a theology professor at Biola University. The inquiry wasn’t for a new car but for a used one, highlighting a growing trend in the used electric vehicle (EV) market.
After an unfortunate accident where his house-sitter totaled his Ford Escape SUV, the professor was in the market for a replacement. Beiza managed to sell him a used 2023 Ford Mustang Mach-E, a sporty all-electric vehicle with 55,000 miles, for $25,000. “He previously owned a Mustang long time ago and was super-interested in getting another one, and settled on an EV because of gas prices,” Beiza explained.
The shift towards used electric vehicles is evident across Southern California. The desire to avoid high gas prices, exacerbated by the U.S. conflict with Iran, is a significant driving force. This conflict, which has led to tighter gas supplies, coupled with a large influx of leased EVs becoming available, has led many consumers to opt for used models instead of new ones that can cost upwards of $50,000.
Tim Tipping from Claremont is one such consumer. He purchased a used 2023 Chevy Bolt just before the expiration of the $4,000 federal tax credit on September 30, 2025. “I always wanted an EV, and I didn’t think I could afford a brand new one,” Tipping noted, emphasizing his desire to find an EV priced under $20,000.
Double-digit growth
Statistics from Mobility Global, an automotive data company, reveal that used EV registrations in California are projected to grow by 20% this year compared to 2025. This growth forecast is based on sales data from the first five months of the year and highlights California’s faster pace compared to the national average of 18%.
“You’ve got more inventory, and people are interested,” remarked Stephanie Brinley, associate director of Mobility Global’s AutoIntelligence. “The used market is much larger than ever.”
While used EV sales are booming, new EV sales in California are expected to decrease by 22% in 2026. Nationwide, new EV sales are anticipated to fall by 25%. The Manheim Used Vehicle Value Index reported a 12.3% rise in June, reflecting the increased activity in the used EV market.
The used EVs’ average listing price was $38,342 in June. This represents a 3.5% increase from the previous month and a 7% year-over-year increase, with brands like Tesla, Chevrolet, Hyundai, and Kia leading the charge. Hybrid vehicles, however, are not included in this category.
The state is attempting to address the decline in new car sales with initiatives such as the MyFirstEV rebate program, which aims to stimulate new ZEV purchases with instant rebates. This $270 million initiative, supported by both the state and participating automakers, provides significant rebates for first-time ZEV buyers.
Expiring tax credits
The expiration of federal tax credits in September 2025 marked a turning point for the used EV market. John Patterson, owner of OC Auto Group, observed a significant increase in demand for pre-owned EVs priced under $30,000 due to rising gas prices. “For used EVs, it’s a unique place we’re in,” Patterson commented.
Stewart Benjamin, general manager of McPeek Anaheim Chrysler Dodge Jeep and RAM, noted increased demand for used EVs in the $25,000 to $29,000 price range. “We’ve had a couple of Teslas, but they pretty much sell faster than the (internal combustion engine) cars. Without question, the used EVs are not the easiest cars to come by. Everybody wants them,” he said.
However, smaller dealerships like Lux Automotive face challenges from the loss of federal credits. Owner Chris Lucero reported a significant drop in sales, forcing him to reconsider his business strategy.
Higher gas prices
Interest in used EVs has surged following the U.S. and Israel-led conflict with Iran, which began on February 28. The war has disrupted oil supplies through the Strait of Hormuz, causing gas prices to rise by about $1 per gallon in California compared to last year, according to GasBuddy.
Jessica Caldwell, head of insights for Edmunds, pointed out that high gas prices, coupled with the high costs of new vehicles, have made used EVs an attractive option. “The idea of buying a new vehicle — they are expensive, interest rates are high, insurance is high, and all the costs that are associated with buying a new vehicle — leaves you wondering if you are trying to solve a gas problem with a $50,000 answer,” Caldwell noted.
Leased EVs
The expiration of numerous EV leases is also contributing to the increased availability of used EVs. According to Cox Automotive’s Stephanie Valdez Streaty, a significant number of EVs leased between 2023 and 2025 are entering the market, offering consumers more affordable options.
Jimmy Douglas, CEO of Plug, sees the used EV market becoming a significant part of the overall used car market by 2030, potentially reaching 10% from its current 2% to 2.8%. He attributes this growth to the large volume of EV leases ending soon.
Douglas also highlighted that California is a major source of used EVs, with many being sold and transported to states like Texas. “The No. 1 migration route for used EVs is from California to Texas,” he remarked.
Original Story at www.ocregister.com