As the automotive industry faces increasing costs for new vehicles and gasoline, consumers are looking to used electric vehicles (EVs) as a budget-friendly alternative. The surge in demand is fueled by the rising prices of traditional vehicles and a growing inventory of off-lease electric and hybrid models.
The average price for a three-year-old used car reached $31,548 in the first quarter of 2026, marking the second-highest average on record, according to Edmunds. Meanwhile, new vehicle prices continued to climb, with the average price for a new vehicle hitting $49,461 in April, as reported by Kelley Blue Book.
“The age-old debate of whether new or used vehicle markets offer shoppers the stronger value has officially taken another turn as residual values trend back down to pre-pandemic norms,” Ivan Drury, Edmunds’ director of insights, noted in his analysis.
Drury also highlighted the anticipated influx of 2023 model year vehicles, including numerous hybrid and electric cars that will become available in 2026 due to lease expirations. This influx is driven by past government incentives promoting these environmentally friendly models. “Helping the cause is a projected surge in off-lease availability this year, up a half-million units from 2025, a 25.7% increase,” Drury stated. “Used EVs in particular represent standout deals and should experience a major rise in inventory through the rest of 2026.”
The USA TODAY Cars team explored Edmunds’ list of EV and hybrid models with the highest lease percentages in 2023, many of which are expected to soon populate used car lots.
Volvo C40 Recharge
Original starting price: $61,033
Average Q1 2026 used price: $25,468
2023 Lease Penetration Rate: 87%
Motortrend reviewed the 2023 Volvo C40 Recharge, noting that it “is as much a style statement as it is a mode of transportation.”
Mercedes-Benz EQE SUV
Original starting price: $86,929
Average Q1 2026 used price: $38,008
2023 Lease Penetration Rate: 87%
According to Edmunds, the 2023 Mercedes-Benz EQE SUV “impresses with its helpful technology features, solid build quality, elegant cabin and long range.”
Mercedes-Benz EQE sedan
Original starting price: $91,682
Average Q1 2026 used price: $39,002
2023 Lease Penetration Rate: 83%
Car and Driver describes the EQE sedan as “essentially a downsized EQS, and while it’s plenty luxurious, it’s not as well-rounded as EV rivals.”
Mercedes-Benz EQB
Original starting price: $62,623
Average Q1 2026 used price: $27,130
2023 Lease Penetration Rate: 83%
Kelley Blue Book noted that the EQB could be ideal for “families who can afford a small Mercedes-Benz SUV and are perhaps considering an electric vehicle for the first time.”
Mercedes-Benz EQS sedan
Original starting price: $127,526
Average Q1 2026 used price: $49,290
2023 Lease Penetration Rate: 82%
Motortrend highlights the EQS as a “counterpart to the high-end S-Class and was a 2022 Car of the Year finalist for its debut year.”
Polestar 2
Original starting price: $62,409
Average Q1 2026 used price: $25,858
2023 Lease Penetration Rate: 81%
Edmunds describes the Polestar 2 as “comfortable and fun to drive around turns” with “a generous amount of cargo space.”
Mercedes-Benz EQS SUV
Original starting price: $124,726
Average Q1 2026 used price: $51,265
2023 Lease Penetration Rate: 78%
U.S. News and World Report noted that while the EQS SUV has “good acceleration and a ritzy cabin,” it also comes with a “steep price” and “bland looks.”
Jeep Grand Cherokee 4xe
Original starting price: $67,864
Average Q1 2026 used price: $28,764
2023 Lease Penetration Rate: 78%
Motortrend highlighted the Jeep Grand Cherokee 4xe as offering “a bewitching combination of power, capability, and luxury.”
BMW iX
Original starting price: $98,471
Average Q1 2026 used price: $45,807
2023 Lease Penetration Rate: 77%
Edmunds praised the BMW iX as “spacious, comfortable, surprisingly efficient and ridiculously agile for its size.”
Original Story at www.usatoday.com