Post-Incentive EV Market: How Used Prices and Financing Costs Reshaped Consumer Choices
Despite the end of federal EV tax credits, a consumer successfully transitioned from a leased Kia EV6 to a used Hyundai Ioniq 5 by leveraging market oversupply. The shift highlights how high new-car prices and rising used-EV values force buyers to prioritize total cost of ownership over sticker price, with home charging remaining essential for financial viability.
Key points
- The author leased a Kia EV6 in 2024 for $137/month, benefiting from $7,500 federal incentives, $2,000 New York state discounts, and a dealer inventory glut that kept prices low despite a $51,845 sticker price.
- With the lease expiring in fall 2026, new EV prices averaged $55,879, making new purchases prohibitive. The author opted for a used 2023 Hyundai Ioniq 5 SE for $21,900, significantly below its original $49,255 price.
- Fuel cost savings are substantial but slow to recoup upfront premiums. Driving an Ioniq 5 costs $6.22 per 100 miles versus $12.55 for a gas Civic, saving $633 per 10,000 miles. However, this takes over 54,000 miles to offset the $3,469 price premium over a comparable gas car.
- Home charging is critical for economic viability. Public fast charging costs approximately 55 cents per kWh, roughly three times the 18.3 cents per kWh for home charging, negating fuel savings if home charging is not available.
- Used EV prices rose 4.3% in September 2026 due to increased demand, but a wave of off-lease vehicles from 2024-2025 leases is expected to peak in 2028, potentially stabilizing prices. Up to 19% of off-lease cars will be EVs by next summer.
Background
This follows earlier coverage of the 2024 EV market glut, where overproduction and incentives led to steep discounts. The current situation reflects the aftermath of those incentives ending, with consumers now navigating a market where new EVs are expensive but used options remain accessible due to high lease turnover.
Why it matters
The story illustrates the practical barriers to EV adoption post-incentives: high upfront costs, financing rates, and charging infrastructure. It shows that while fuel savings are real, they do not immediately justify higher purchase prices, especially without home charging. The impending influx of off-lease EVs may provide relief, but for now, buyers must carefully calculate long-term costs to make EVs financially sensible.
What to watch
The market will likely see continued volatility in used EV prices as the 2028 off-lease peak approaches. Consumers may continue to favor used EVs over new ones, while automakers face potential financing challenges from depreciated lease returns. The author’s experience suggests that diligent searching and leveraging warranty transfers can mitigate some costs, but the broader trend indicates a shift toward cost-conscious EV purchasing.
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