Used EV Market

How big is Used EV Market in 2026?

The used EV market is valued at USD 224.3 billion in 2026 and is projected to reach USD 502.4 billion by 2036, growing at an 8.4% CAGR as per FMI synthetic survey.

Used EV transaction value stood at USD 206.9 billion in 2025, moving to USD 224.3 billion in 2026 and an expected USD 502.4 billion in 2036, an 8.4% annual pace. Battery electric models make up the leading 54.7% of 2026 propulsion value, and resale pricing tracks closely with battery management system readings of remaining capacity. US used EV sales reached about 128,000 units in the second quarter of 2026, a quarterly record and 29% more than a year earlier, at an average price near USD 37,000 [1].

The run continued into August 2026, with used EV sales up 14.7% year on year and the average listing price at USD 37,441 [2]. British dealers and private sellers handled 110,761 used battery electric cars in the second quarter of 2026, up 67%, lifting the fuel type to 5.5% of all used car transactions from 3.3%. China's dealer association counted 1.609 million used new energy vehicle trades in 2025, up 42.5%, close to 8% of the 20.108 million used vehicles traded that year.

Large used car retailers are converting this supply into record turnover. Carvana sold 197,325 retail units in the second quarter of 2026, up 38%. CarMax reported 227,391 retail used units for the quarter to 31 August 2026, up 13.8%, at an average selling price of USD 27,623. On 12 October 2026, CarMax listed 3,609 electric vehicles online, with a range filter and a notice that range declines with battery age. OEM and lessor channels are competing on battery disclosure. BYD set a minimum battery health score of 90 for Certified Pre-Owned cars from October 2025, and Ayvens Carmarket added state of health certificates for used battery electric cars in six European countries in September 2025 [3]. Sellers that pair inventory scale with certified battery data are positioned to set used EV prices across the forecast period.

Key Market Trends & Insights

• Used hybrids led battery electric cars on units in Britain over April to June 2026, at 130,825 against 110,761, though battery electric vehicles still hold 54.7% of global propulsion type value for 2026. Used plug-in hybrids fell 6.8% over the same quarter.
• FMI finds passenger cars represent a projected 88.4% of vehicle type value in 2026. A used car carries a higher unit value than a used two-wheeler, which keeps car-based transactions ahead on value share despite lower unit counts in some markets.
• Vehicle drive type is tracked as a qualitative axis; FMI has not derived a propulsion-value split by drive type for this edition, as dealer listings rarely report drive configuration independently of trim.

Regional Highlights

• Among the profiled countries, United Kingdom posts the quickest pace at 12.6% CAGR over 2026 to 2036.
• FMI profiles China and India at a shared 9.8% CAGR by country. The United States, Germany and Japan are profiled without a stated rate.
• Electrified models filled all ten places in Autotrader's fastest-selling used car ranking for 1 to 15 July 2026, eight of them battery electric.

Market Size & Forecast

Table 1: Market Size and Forecast for the Used EV Market (USD billion and percentage), 2025 to 2036

Metric	Value
2025 Market Size	USD 206.9 billion
Estimated Market Size in 2026	USD 224.3 billion
Projected Market Size by 2036	USD 502.4 billion
CAGR, 2026 to 2036	8.4%
Added Revenue, 2026 to 2036	USD 278.2 billion
Market Expansion Multiple	2.2x

Price parity with petrol cars is drawing buyers to used EVs. In the first quarter of 2026, the average US used EV sold for USD 34,821, about USD 1,300 above the average used gasoline vehicle, and used EV sales rose 12% to about 93,500 units. By September 2026, more than half of US used EV listings were priced under USD 30,000, and the national average gasoline price stood at USD 4.46 a gallon [4]. In Britain, the average used EV price rose 1.6% year on year to GBP 24,662 in June 2026, the first annual rise since December 2022. Charging access shapes how far this spreads beyond early adopters, a link tracked through the electric vehicle charging station market. The used clean vehicle credit of up to USD 4,000 on vehicles priced at or below USD 25,000 no longer applies to vehicles acquired after 30 September 2025, removing a direct price support from the cheapest US used EVs. Resale volumes are expected to keep rising as prices settle closer to those of comparable combustion cars.

Battery Disclosure and Resale Evidence

The indicators below cover resale volumes, prices, time to sell and the battery health rules that now govern disclosure, drawn from 2025 and 2026 reporting periods.

Table 2: Battery Disclosure and Resale Indicators for the Used EV Market (mixed units), mixed reporting years from 2025 to 2026

Indicator	Data Point	Significance	Source
US used EV sales, Q2 2026	About 128,000 units, up 29%	Record quarter despite the end of the federal credit	[1]
UK used BEV transactions, Q2 2026	110,761, up 67%; 5.5% of used car sales	Off-lease supply now reaching private buyers
China used NEV transactions, 2025	1.609 million, up 42.5%	Largest single used EV pool by units
China battery health standard GB/T 46991.1-2025	In effect from 1 July 2026; displayed SOCE within 5% of measured value	Sets a common basis for valuing used battery packs
EU digital battery passport	Mandatory from 18 February 2027 for traction batteries above 2 kWh	Adds a lifetime battery record to future used EVs
Three-year-old EV wholesale values, US	About 14% above week 1 value, against 3.5% for non-EVs	Firming dealer prices support trade-in offers	[1]

Analyst Perspective

“Battery state of health is becoming the reference point for used EV pricing, in the way odometer readings are for combustion cars. Sellers that can document this data at scale, whether retailers, OEM approved-used networks or leasing remarketers, are well positioned to capture value as off-lease supply rises through 2036.”

- Nikhil Kaitwade, Associate Vice President, Automotive, Future Market Insights.

How is the Used EV Market segmented?

Used EV market is segmented by three primary commercial axes and region: propulsion type, vehicle type, vehicle drive type, and region. In 2026, battery electric vehicles are projected at 54.7% and passenger cars at 88.4%; drive type is tracked qualitatively without a value split in this edition.

By propulsion type: battery electric vehicles, hybrid electric vehicles, plug-in hybrid electric vehicles, and fuel cell electric vehicles.

By vehicle type: two-wheelers, passenger cars, commercial vehicles, and others.

By vehicle drive type: front-wheel drive, rear-wheel drive, and others.

By region: North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia and Pacific, and Middle East and Africa.

Which factors keep battery electric vehicles ahead in propulsion type value?

Battery electric vehicles are projected to hold 54.7% of propulsion type value in 2026, as higher average resale prices offset smaller unit counts than hybrids in some markets.

Table 3: Propulsion Type Share for the Used EV Market (percentage share), 2026

Propulsion Type	Share (2026)
Battery Electric Vehicles	54.7%
Other Segments Combined	45.3%*
Total	100%

*Represents all other propulsion types combined, for a total of 100%.

Table 4: Propulsion Type Leadership and Market Growth for the Used EV Market (segment and CAGR percentage), 2026 to 2036

Metric	Value
Global CAGR (2026 to 2036)	8.4%
Leading Segment	Battery Electric Vehicles

Battery electric models carry 54.7% of 2026 propulsion value, a lead built on price per unit. US used EVs averaged about USD 37,000 in mid-2026, against a CarMax average of USD 27,623 across all fuel types [1][5]; this CarMax figure blends all fuel types rather than isolating gasoline vehicles, so it is a different baseline from the gasoline-specific USD 1,300 premium cited elsewhere in this report, not a second measure of the same premium. Hybrids lead on units in some markets, and British used hybrid sales reached 130,825 in the second quarter of 2026, up 31.2%. Durability readings narrow the discount applied to older packs, a link also tracked in electric vehicle battery coverage.

• Battery electric vehicles take 54.7% of 2026 value, helped by a US used EV price premium of about USD 1,300 over used gasoline vehicles in early 2026.
• Plug-in hybrids are losing ground in Britain, with a used share of 1.1% for April to June 2026 against 1.2% a year before.

What keeps passenger cars at the centre of vehicle type demand?

Passenger cars are projected at 88.4% of vehicle type value in 2026, with retail chains, online platforms and OEM programmes built around car inventory.

Passenger cars hold 88.4% of 2026 vehicle type value, with two-wheelers, commercial vehicles and other types sharing the remainder. Car-based supply is broad. Carvana and CarMax together sold more than 424,000 retail used vehicles in the latest reported quarters, across all fuel types [5]. In India, electric car sales rose about 86% in fiscal 2026, building the pool of cars that will come up for resale later in the decade. Electric two-wheelers made up 57.8% of Indian EV sales that year, so two-wheeler resale is expected to stay larger in units than in value.

• Passenger cars represent 88.4% of 2026 value; dealer and auction pricing data cover cars far more fully than other vehicle types.
• FMI expects used electric vans and buses to remain a smaller, fleet-led pool over the forecast period.

How is vehicle drive type demand tracked?

Drive type is tracked as a qualitative axis; front-wheel drive, rear-wheel drive and other layouts are not split by value in this edition.

Entry-priced models are turning over fastest. The Chevrolet Bolt EV was the quickest-selling used EV in the US between June and September 2026, at a median of 13 days, as Teslas made up about 30% of US used EVs sold in August [4]. Drive layout is expected to influence buyers mainly through the effect on price and range at each model's resale point.

• Drive type is tracked qualitatively; a propulsion-value split by drive type is not estimated for this edition.
• FMI expects dealer stocking decisions to follow model-level turnover data.

What are the drivers, restraints, and opportunities in the Used EV Market?

In the used EV market, rising off-lease supply at prices close to those of combustion cars drives volume, residual value uncertainty and the loss of the US used EV credit weigh on pricing, and certified battery health data opens the principal commercial opportunity.

• Driver: Off-lease EVs reaching dealers at prices near those of used gasoline cars.
• Restraint: Volatile residual values and expiry of the US used clean vehicle credit.
• Opportunity: Standardised battery health certificates and passports that let sellers price packs with confidence.

Off-lease supply lifts dealer volumes

Recurrent reported in September 2026 that 2023 off-lease EVs were reaching US dealer lots in larger numbers, and that used EV sales had risen since the credit ended even though overall used car sales fell 3% year on year in August [4]. Used EVs carried 31 days of supply in mid-2026, 23% fewer than a year earlier and below the 42 days for gasoline vehicles, per Cox data reported in June. Connected-car data from automotive OEM telematics platforms are becoming the source for battery readings on these returns.

Residual values and incentive changes constrain pricing

Japanese subsidies have left some new EVs cheaper than used ones, pushing used EV prices below underlying value, according to a July 2026 report on first-half sales. In the US, the USD 4,000 used EV credit is unavailable for vehicles acquired after 30 September 2025. British used EV prices only returned to annual growth in June 2026, after more than three years of decline.

Battery certificates open a pricing opportunity

China's GB/T 46991.1-2025 sets minimum available energy retention of 82% after five years or 100,000 km and 70% after ten years or 200,000 km, alongside a 5% accuracy cap for displayed values. In Europe, the battery passport due on 18 February 2027 will record state of health for traction batteries, with real-time readings limited to authorised users. BMW began documenting usable battery capacity for used electrified vehicles in Switzerland in August 2025, after a survey found that 81% of potential buyers had not heard of state of health testing. FMI expects certified listings to command firmer prices and faster turnover through 2036.

Which country CAGRs are profiled in the Used EV Market?

Table 5: Country CAGR Comparison for the Used EV Market (CAGR percentage), 2026 to 2036

Country	CAGR
United Kingdom	12.6%
China	9.8%
India	9.8%

How do country-level CAGRs compare in the Used EV Market?

Fleet age, the volume of off-lease returns and battery disclosure rules set the pace in each country. The United Kingdom leads at 12.6%, ahead of China and India at 9.8% each. The United States, Germany and Japan are profiled for market context without a stated rate.

• United Kingdom: off-lease battery electric cars are reaching private buyers in volume.
• China: the largest used NEV pool by units, now under a national battery health standard.
• India: a young electric car fleet with OEM buyback schemes.
• United States: record used EV quarters after the federal credit ended.
• Germany: a large used car market, with certified battery checks spreading through programmes such as Ayvens Carmarket's state of health certification.
• Japan: new EV subsidies compress used EV prices.

Full report country CAGRs cover: North America; Latin America; Western Europe; Eastern Europe; East Asia; South Asia and Pacific; Middle East and Africa.

Country-wise Analysis

• The United Kingdom heads the profiled set with a 12.6% CAGR to 2036. Used battery electric car sales rose 67% over April to June 2026, and used (non-plug-in) hybrid electric vehicles raised their own share of UK used car sales to 6.5% from 5%. Used EVs took an average of 24 days to sell during 1 to 15 July 2026, against 30 days across all fuel types.
• China's used EV value is set to rise at 9.8% a year through 2036. Used NEV trades reached 168,800 in December 2025, up 36.5% year on year, and cars under two years old made up 43.4% of them. The GB/T 46991.1-2025 battery health standard, effective 1 July 2026, gives dealers a shared measure for pack condition.
• India is forecast to record 9.8% CAGR through 2036 from a fleet still in a first ownership cycle. Electric car sales grew about 86% in fiscal 2026, with Tata Motors at an estimated 39% share and MG at 27%. 
• The United States is profiled without a discrete country CAGR in this edition. Used EV sales rose about 12% to 93,500 units in the first quarter of 2026 and reached a record of about 128,000 in the second quarter [1]. Teslas made up about 30% of used EVs sold in August 2026 [4].
• Germany is profiled without a published rate. The KBA recorded 6,512,427 passenger car ownership changes in 2025, up 0.5%. Used cars accounted for 61% of private buyers' switches from combustion to electric in a 2025 study, and Ayvens issues battery certificates on used battery electric cars sold in Germany [3].
• Japan is profiled without a discrete country CAGR in this edition. New EV sales roughly doubled to about 59,337 units in the first half of 2026, a record 3% share, as subsidies left some new models cheaper than used equivalents.

Who are the notable companies in the Used EV Market?

CarMax, Carvana, Auto Trader Group, BMW AG, Mercedes-Benz AG, BYD, JSW MG Motor India and Ayvens form the company set profiled for used EV resale.

Retail scale and battery disclosure divide the field. US retailers move the largest volumes across all fuel types, OEM programmes compete on battery health thresholds and warranty carry-over, and leasing remarketers control much of the off-lease supply that feeds dealers.

• Used vehicle retailers and marketplaces: CarMax, Carvana, Auto Trader Group, Cox Automotive (Manheim).
• OEM approved-used and certified programmes: BMW AG, Mercedes-Benz AG, BYD, JSW MG Motor India, Tesla.
• Leasing and remarketing: Ayvens.

Competitive Benchmarking: Used EV Market

Table 6: Competitive Benchmarking for the Used EV Market (qualitative capability ratings), 2026

Company	Used EV Inventory	Battery Health Disclosure	Residual Value Support	Reach
CarMax	High	Low	Low	Medium
Carvana	High	Low	Low	Medium
Auto Trader Group	High	Low	Low	Medium
BMW AG	Medium	High	Medium	High
Mercedes-Benz AG	Medium	High	High	High
BYD	Medium	High	High	High
JSW MG Motor India	Low	Low	High	Low
Ayvens	Medium	High	Low	Medium

High reflects wide published detail on used EV programmes, Medium reflects limited published detail, and Low reflects minimal published detail. These ratings cover public disclosure depth only.

Key Developments in the Used EV Market

• In September 2026, CarMax reported second-quarter fiscal 2027 net sales of USD 7,877.9 million, up 19.5%, with comparable store used unit sales up 13%.
• In July 2026, Carvana reported a record second quarter with net income of USD 513 million.
• In October 2025, BMW Group Switzerland announced a free battery certificate at all BMW and MINI partners that records the usable capacity of each used electrified vehicle.
• In September 2025, Ayvens Carmarket introduced state of health certificates for used battery electric cars in the Czech Republic, Finland, France, Germany, the Netherlands and Portugal.

Key Players in the Used EV Market

Used Vehicle Retailers and Marketplaces

• CarMax
• Carvana
• Auto Trader Group
• Cox Automotive (Manheim)

OEM Approved-used and Certified Programmes

• BMW AG
• Mercedes-Benz AG
• BYD
• JSW MG Motor India
• Tesla

Leasing and Remarketing

• Ayvens

Used EV Market - Report Scope

Table 7: Report Scope for the Used EV Market (coverage fields and definitions), 2026 to 2036

Coverage field	Report scope
Market breakdown	Propulsion type; vehicle type; vehicle drive type; region
Quantitative units	USD billion
Market definition	Gross transaction value of pre-owned electrified vehicles (battery electric, hybrid electric, plug-in hybrid electric and fuel cell electric) across two-wheelers, passenger cars, commercial vehicles and other types, sold through franchised and independent dealers, online retailers, OEM approved-used programmes, auctions to end buyers and private sales; excludes new vehicle sales, lease and finance income, extended warranties, standalone battery resale and recycling. Note: "EV" as used in this report's propulsion-type segmentation includes conventional (non-plug-in) hybrid electric vehicles, not only plug-in and battery electric vehicles
Regions covered	North America; Latin America; Western Europe; Eastern Europe; East Asia; South Asia and Pacific; Middle East and Africa
Countries covered	United Kingdom; China; India; United States; Germany; Japan
Key companies profiled	CarMax; Carvana; Auto Trader Group; Cox Automotive (Manheim); BMW AG; Mercedes-Benz AG; BYD; JSW MG Motor India; Tesla; Ayvens
Forecast period	2026 to 2036
Approach	The estimate blends bottom-up and top-down inputs, reconciling registry ownership-transfer counts, dealer and auction transaction prices and retailer disclosures within the defined revenue boundary.

Used EV Market - Research Methodology

Table 8: Research Methodology for the Used EV Market (research methods and approach), 2026 edition

Method	Approach
Primary Research	Interviews with used vehicle retailers, OEM remarketing teams, leasing companies and battery diagnostics providers.
Desk Research	Review of registry statistics, trade association data, retailer results, incentive rules and battery standards.
Market Sizing and Forecasting	Country-level modelling of used electrified vehicle transactions by propulsion and vehicle type, multiplied by average transaction prices.
Data Validation	Triangulation of model outputs against registry counts, price indices and listed retailer disclosures, with analyst review of outliers.

Used EV Market by Segments

Used EV Market segmented by Propulsion Type:

• Battery Electric Vehicles
• Hybrid Electric Vehicles
• Plug-in Hybrid Electric Vehicles
• Fuel Cell Electric Vehicles

Used EV Market segmented by Vehicle Type:

• Two-wheelers
• Passenger Cars
• Commercial Vehicles
• Others

Used EV Market segmented by Vehicle Drive Type:

• Front-wheel Drive
• Rear-wheel Drive
• Others

Used EV Market by Region

• North America
  • United States
  • Canada
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile
• Western Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Benelux
  • Nordics
• Eastern Europe
  • Poland
  • Czech Republic
  • Romania
  • Hungary
• East Asia
  • China
  • Japan
  • South Korea
• South Asia and Pacific
  • India
  • ASEAN
  • Australia and New Zealand
• Middle East and Africa
  • GCC Countries
  • South Africa
  • Türkiye
  • Israel

Research Sources and Bibliography

• [1] The Drive. (2026, June 30). New EV sales have cratered, but the used market is setting records. https://thedrive.com/news/new-ev-sales-have-cratered-but-the-used-market-is-setting-records
• [2] Kelley Blue Book. (2026, September 17). U.S. EV sales rise in August. https://www.kbb.com/car-news/u-s-ev-sales-rise-in-august/
• [3] Motor Finance Online. (2025, September 25). Ayvens Carmarket introduces certificates for used BEVs in Europe. https://www.motorfinanceonline.com/news/ayvens-bevs-certificates-europe/
• [4] Recurrent. (2026, September 30). Used electric car prices and market report, Q3 2026. https://www.recurrentauto.com/research/used-electric-vehicle-buying-report
• [5] CarMax, Inc. (2026, September 29). CarMax reports second quarter fiscal 2027 results (Form 8-K exhibit). https://www.sec.gov/Archives/edgar/data/0001170010/000117001026000102/q2fy27earningsrelease.htm
• [6] Society of Motor Manufacturers and Traders. (2026, August 11). Used car market returns to growth as EV sales accelerate. https://www.smmt.co.uk/used-car-market-returns-to-growth-as-ev-sales-accelerate/
• [7] ChinaEVHome. (2026, February 3). China's used NEV transactions hit 168,800 units in Dec 2025, SUVs capture 28.9% share. https://chinaevhome.com/2026/02/03/chinas-used-nev-transactions-hit-168800-units-in-dec-2025-suvs-capture-28-9-share/
• [8] Carvana Co. (2026, July 29). Carvana announces record second quarter 2026 results. https://secure.businesswire.com/news/home/20260729523749/en/Carvana-Announces-Record-Second-Quarter-2026-Results
• [9] CarMax, Inc. (2026, October 12). Used electric cars for sale (listing page, accessed 12 October 2026). https://www.carmax.com/cars/electric
• [10] Motor Trade News. (2025, September 8). BYD announces Certified Pre-Owned scheme. https://www.motortradenews.com/?p=67013
• [11] Autotrader Group plc. (2026, July 20). Watt a turnaround: electrified models sweep July's fastest-selling used car rankings for first time. https://plc.autotrader.co.uk/news-views/press-releases/watt-a-turnaround-electrified-models-sweep-julys-fastest-selling-used-car-rankings-for-first-time/
• [12] Electrek. (2026, March 27). New EV sales drop 28% in Q1 2026, but used EVs surge 12% to near-record levels. https://electrek.co/2026/03/27/used-ev-sales-boom-new-ev-sales-drop-28-percent-q1-2026/
• [13] Internal Revenue Service. (2026, July 13). Used clean vehicle credit. https://www.irs.gov/credits-deductions/used-clean-vehicle-credit
• [14] electrive. (2026, August 3). China makes EV battery health more transparent. https://electrive.com/2026/08/03/china-makes-ev-battery-health-more-transparent
• [15] Messe Frankfurt. (2026, July 17). The European battery passport. https://automotive.messefrankfurt.com/global/en/news-insights/industry-insights/european-battery-passport.html
• [16] JMK Research and Analytics. (2026, May 1). Annual India EV report card: FY2026. https://jmkresearch.com/annual-india-ev-report-card-fy2026/
• [17] Canadian Auto Dealer. (2026, June 26). U.S. used EV sales surge as new EV demand cools. https://canadianautodealer.ca/2026/06/u-s-used-ev-sales-surge-as-new-ev-demand-cools/
• [18] Dow Jones Newswires via Tiger Brokers. (2026, July 7). Yomiuri: EV sales double in Japan in 1st half of 2026. https://www.itiger.com/news/2649980648
• [19] BMW (Schweiz) AG. (2025, October 16). Safety when buying used electrified vehicles from the BMW Group: the new battery certificate. https://www.press.bmwgroup.com/switzerland/article/attachment/T0453347DE/639035
• [20] JSW MG Motor India. (2024, September 11). MG Windsor to disrupt the car industry. https://mgmotor.co.in/media-center/newsroom/mg-windsor-to-disrupt-the-car-industry
• [21] Autohaus. (2026, January 7). Gebrauchtwagenmarkt 2025: Mehr als 6,5 Millionen Halterwechsel. https://www.autohaus.de/nachrichten/gw-trends/gebrauchtwagenmarkt-2025-mehr-als-6-5-millionen-halterwechsel-3753711
• [22] ecomento. (2025, May 15). Elektroautos im Privatmarkt: Beliebtheit sinkt laut Studie, Gebrauchtwagen im Aufwind. https://ecomento.de/2025/05/15/elektroautos-im-privatmarkt-beliebtheit-sinkt-laut-studie-gebrauchtwagen-im-aufwind/
• [23] Motorsactu. (2023, September 24). Mercedes-Benz Certified: l'état de santé, nouveau kilométrage pour les véhicules d'occasion 100% électriques. https://motorsactu.com/mercedes-benz-certified-etat-de-sante-nouveau-kilometrage-pour-les-vehicules-doccasion-100-electriques/

This Report Answers

• How big is the used EV market during 2026?
• What value is projected by 2036?
• Which propulsion type holds notable share?
• Which vehicle type holds notable share?
• Which countries have notable growth?
• Which companies are notable in the market?