The used-car market, after a period of extreme volatility driven by pandemic-related shortages, is now experiencing a slowdown in sales velocity. While prices continue to rise, consumers are taking more time to make purchasing decisions. A surprising trend has emerged: electric vehicles (EVs) are now turning over on dealer lots faster than traditional gasoline-powered cars.
The Slowdown in Used Car Sales
Data from Edmunds indicates that the average three-year-old vehicle spent 41 days on dealer lots in the third quarter of 2025. This marks the slowest “days-to-turn” pace since 2017, a clear sign that buyers are becoming more cautious. The primary driver is the ongoing increase in transaction prices, which reached an average of $31,067 in Q3 2025 – a five percent jump from the previous year and nearly $10,000 higher than in 2017.
This price climb is forcing buyers to weigh their options carefully, comparing used models to new cars that often come with incentives and warranties. The last time used car prices exceeded $30,000 was in 2022, during the peak of pandemic-era shortages. Now, with supply chains normalizing, shoppers are taking a more deliberate approach.
EVs Lead the Charge
Despite the overall slowdown, EVs are bucking the trend. They are averaging just 34 days on dealer lots, significantly faster than gasoline vehicles (43 days), hybrids (40 days), and even plug-in hybrids (47 days). This suggests that EVs are becoming increasingly attractive to used car buyers.
Value and Mileage Drive Demand
The appeal of used EVs is rooted in their value proposition. They typically have lower mileage (averaging 35,661 miles) and fall within a more affordable price range: nearly two-thirds of three-year-old EVs are priced between $20,000 and $30,000. In contrast, only 42 percent of all other used vehicles fall within this range.
Furthermore, used EVs often show less wear and tear, with approximately 66 percent having fewer than 40,000 miles on the odometer. This combination of affordability, lower mileage, and environmental benefits is driving demand.
Limited Supply, Growing Interest
Despite making up only 1.6 percent of total used inventory, EVs are dominating the fastest-selling segments. Eight of the 19 fastest-selling three-year-old vehicles in Q3 2025 were EVs. Models like the Hyundai Ioniq 5, Volkswagen ID.4, and Ford Mustang Mach-E offer substantial savings compared to new prices, often undercutting them by more than $25,000.
However, finding these deals can be challenging due to limited availability. While some ICE cars like the Toyota GR Supra and Lexus NX 350h have held their value well, EVs are clearly gaining momentum in the used market.
The shift towards used EVs reflects a broader trend: consumers are becoming more price-sensitive and environmentally conscious. As EV technology matures and supply increases, this trend is likely to accelerate.
