Used car shopping just got a whole lot better, and most people haven’t noticed yet. New cars are averaging close to $49,000. Used cars sit around $25,600. That gap alone is reason enough to look at used, but right now there’s something extra going on that makes the timing even better.
Why there are suddenly so many more cars to choose from
Think back to 2022 and 2023. The government was handing out big tax credits to get people into electric cars. Automakers saw a chance to make leasing really cheap, so millions of people signed 3-year lease deals. Those leases are all coming due right now, at the same time. The result is a flood of nearly-new cars hitting dealer lots, about half a million more than last year, a 25% jump in off-lease inventory.
EVs are the biggest part of that wave. Over 300,000 electric vehicles are expected to come off lease in 2026, more than double what returned in 2025. Used EV prices have already dropped as much as 40% from their peak. Cars that originally sold for over $40,000 are now showing up in the low $20,000s.
Not every deal is a good deal — here’s what to look for
Some cars lose value slowly and stay reliable for years. Others drop fast and get expensive to fix. Toyotas and Hondas consistently land in the first group. The Tacoma barely loses any value at all over five years. The Civic and Corolla are almost impossible to lose money on. Off-lease EVs offer the biggest price cuts right now, but their values can keep sliding as even more inventory piles up through 2027, so do your homework before buying one.
| Vehicle | Type | Why it stands out | 5-yr depreciation |
|---|---|---|---|
| Toyota Tacoma | Truck | Holds value better than almost anything else on the road | ~26% |
| Honda Civic | Sedan | Cheap to insure, cheap to fix, runs forever | ~31% |
| Toyota Corolla | Sedan | Ranked best overall used value by CarEdge | ~33% |
| Toyota RAV4 Hybrid | SUV | High demand keeps resale strong, great on gas too | ~34% |
| Honda CR-V | SUV | One of the best residual values in its class | ~35% |
| Used EV (non-Tesla) | Electric | Biggest discounts available, but check battery health first | ~40-50% |
One thing to always do before you buy
Look for certified pre-owned (CPO) off-lease cars specifically. CPO means the manufacturer inspected it, backed it with an extended warranty, and verified the service history. Rental cars and fleet trucks are worth avoiding since they get driven hard by strangers who don’t care about them. And if you’re eyeing a used EV, always ask for a battery health report before you commit.
This kind of inventory surge doesn’t last. If you’ve been waiting for the right time to buy a nearly-new car at a real discount, 2026 is it.
Sources
- Edmunds — Q1 2026 Used Car Insights Report — Read the report
- GreenCars — Used EV Surge 2026 — Read the article
- Autoblog — Want a Cheap EV? The Used Market Is About to Surge — Read the article
- CDK Global / CBT News — Dealers Brace for Influx of Off-Lease EVs in 2026 — Read the article
- Nasdaq / CarEdge — 6 Used Cars Expected to Hold Their Value Best Through 2035 — Read the article
- RealCarTips — Best New Car Incentives and Lease Deals for May 2026 — Read the article
- MoneyGeek — Average New Car Price in 2026 — Read the article
- CarPro Show — Your Extended Forecast: Flash Flooding of Used EVs — Read the article