Used EV Market Size - By Vehicle, By Propulsion, By Age, By Range, Growth Forecast, 2025 - 2034

Used EV Market Size

The global used EV market size was valued at USD 15.8 billion in 2024 and is estimated to register a CAGR of 7.9% between 2025 and 2034.
 

The market is experiencing robust growth due to growing environmental awareness, government incentives, and technology advances made by the EV sector. Various macroeconomic drivers affect the overall growth of the used EV market.
 

Government incentives, such as tax credits and subsidies, have improved the affordability of EVs for consumers. For example, from January 1, 2023, eligible used EVs that cost less than $25,000 can qualify for as much as USD 4,000 in federal tax credits. Also, increasing cost of new cars and inflationary pressure have caused consumers to focus on more economically using EVs.
 

Advancements in technology have further been a vital factor for the growth of the used EV market. Increased battery life and growing charging infrastructure have mitigated range concerns; hence more users find used EVs as a better option. Additionally, greater availability of certified pre-owned EV programs has given buyers more assurance in the reliability of used electric cars. As new individual EV buyers will trade in their vehicle after using it and thus more used EVs will proportionately be available to meet the rising demand. With government incentives and technology continuing to evolve the market is expected to expand in the future.
 

Used EV Market Trends

• Government incentives have played a key role in helping the growth of used electric vehicles. In Europe, several countries have introduced subsidies and tax advantages aimed at persuading consumers to buy used EVs. For instance, Germany offers incentives for both new and used EVs which resulted in a 40% increase in used EV ownership transfers in 2023 from the previous year.
   
• These incentives not only increase used EVs reach of more consumers but also indicate governmental support for eco-friendly transportation, which instills consumer confidence. Consequently, the market for used EVs is growing strongly, with increasing consumers looking at electric vehicles as their next car buys.
   
• Technological advancements in EVs have further enhanced the popularity of used electric cars. Current EVs have better battery life, better performance, and advanced safety features, putting them on par with new vehicles. Battery technology specifically has improved significantly.
   
• The lifespan of EV batteries has generally increased, dispelling concern of battery degradation on used cars. The increasing use of battery health diagnostics tools allows the buyer of a used EV to understand the efficiency of the battery on the used EV, which further offers transparency and is assured to consumers.
   
• Changing consumer preference towards the environmental concerns are also contributing to increased demand for used electric vehicles. As climate change and air pollution become more prevalent in discussion among consumers, there are more people looking for environmentally friendly transportation options. Used EVs provide an environmentally friendly solution compared to classic internal combustion engines, with no tailpipe emissions and lower carbon footprints overall.
   
• In addition, the manufacture of new vehicles has made a considerable contribution to greenhouse gas emissions. Buying used EVs helps customers reduce the environmental footprint of car production. Such an aspect is highly attractive to green buyers who want to be responsible without giving up on performance and convenience.
   

Trump Administration Tariffs

• The proposed 25% tariff of Trump administration on foreign-produced cars in the United States might disturb the new and used electric vehicle markets. New electric vehicle makers are reliant on large parts inventories built from massive global supply chains to create advanced technologies.
   
• As an example, the immediate impact of tariffs is an increase in price of new imports between US2,500 and US20,000 (as estimates by the U.S. Department of Commerce and related automotive trade groups). Price increases will likely find their way into the used EV market, creating both an attractive avenue and a volatile space.
   
• The expected tariff might be limiting access to foreign used EVs especially from Europe and Asia, where the largest supply of economical, compact, and trustworthy second-hand electric vehicles already exists. If the availability of used EVs becomes impaired, dealers and rentals may be inclined to implement localization processes at a greater rate namely, acquire domestic EV models, enhance their retrofitting operations, or create arrangements with US-based refurbishing centers to create longer life cycles for their vehicles.
   
• Trade volatility can also add uncertainty to the investment decisions and R&D relationship balances struck. Unanticipated retaliatory tariffs from Europe and Asia in response to US tariffs could further compromise exposure for American used EV exporters to foreign resale markets like Germany, South Korea, and Japan where the demand for affordable US-based EVs is increasing.
   

Used EV Market Analysis

Based on Vehicle, the used EV market is divided into Passenger Vehicles, Commercial Vehicles, and Two and Three Wheelers. In 2024, Passenger Vehicles held 70% of the market share and it is expected that the market for this segment will generate revenue of USD 24 billion by 2034.
 

• Passenger Vehicles are the most dominant segment within the used electric vehicle market. They are favored due to a mix of performance, practicality, and the preference of customers for larger cars. Electric Passenger Vehicles like SUVs provide enough space, greater seating heights, and versatility and thus appeal to a wide set of customers such as families and outdoor enthusiasts.
   
• The demand for this type of passenger vehicle has seen electric SUV makers offer more. Products like Tesla Model Y, Ford Mustang Mach-E, and Volkswagen ID.4 have all captured substantial market appeal. Electric propulsion offers a range of benefits combined with consumer-demand features on SUVs like all-wheel drive and infotainment technologies.
   
• As consumers continue to favor SUVs and other passenger vehicles, the electric models enter the market more, the dominance of electric passenger vehicle in the used vehicle segment is expected to persist, driving sustained growth in this category.

Based on propulsion, the used EV market is categorized into Battery electric vehicles (BEV), Hybrid electric vehicles (HEV), Plug-in hybrid electric vehicles (PEV), Fuel cell electric vehicles (FCEV). The Battery electric vehicles (BEV) segment held a market share of 57% in 2024 and the services segment is expected to grow at CAGR of around 9% during the forecast period.
 

• Battery Electric Vehicles (BEVs) is the largest propulsion segment in the used EV market. Unlike internal combustion engines, BEVs are powered only through electrification and during operation, produce no tailpipe emissions. This fits into the growing consumers' interest in sustainable transportation.
   
• BEV powertrains have simple mechanisms, having fewer parts than internal combustion engines, which leads to lower maintenance requirements and mechanical breakdowns throughout a car's lifecycle. This reliability adds to the desirability of used BEVs for consumers who need sustainable transportation but want to do so at a reasonable cost.
   
• Battery technology has developed driving range concerns, so earlier criticisms about range and charging infrastructure have improved since BEVs introduced public charging stations several years ago. Many modern BEVs now offer ranges more than 300 km with one charge, which show their suitability for a broad range of driving needs.
   
• As more consumers switch to EVs, and trade in their last-generation used cars or trucks, the overall supply of used, consumer-ready BEVs is starting to increase in the used EV market. This growing inventory provides prospective buyers with a wider selection of vehicles at varying price points, further stimulating market growth.
   

Based on age, the used electric vehicles market is divided into Up to 3 years, 3-5 years, and above 5 years. The Up to 3 years segment dominated the market in 2024.
 

• Used electric vehicles up to three years old make up the largest age segment of the used EV marketplace. These units, as the "newest" used vehicles, strike the right balance of cost, feature set, and arrival of technology and performance between new and older vehicles.
   
• In addition to a more modern vehicle, vehicles in this age group usually still have manufacturer warranties, which can provide buyers some reassurance about potential repairs and maintenance. Also, newer EVs typically have better battery health, and concerns about battery pack deterioration and replacement are lessened.
   
• Another reason this age group is comparatively strong in the used market is due to the rate of development in the EV sector. Vehicles up to three years old are oftentimes able to boast of the latest developments in terms of range, charging, and infotainment systems. This means that buyers of lightly used EVs will opting numerus modern conveniences vehicle at a lower price range than new models.
   
• Certification programs for certified pre-owned vehicles are also another factor for the segment's strength, as they often come with inspections, assurance, and other functional benefits. Notably, the average three-year-old EV loses about 52% of its original value. As new EV buyers continue to proliferate, which further expect to experience significant growth in the supply of used EV inventory which ages up to 3 years, continues to reinforce the strength of this segment in the used EV marketplace.
   

Based on range, the used EV market is divided into less than 50,000 km, 50,000-1,00,000 km, and above 1,00,000 km. The 50,000-1,00,000 km segment dominated the market accounting for more than 45% market share in 2024.
 

• Buyers are attracted to this segment since there is minimal wear and tear on the vehicle, allowing for a greater remaining lifespan with better overall condition. Typically, low-mileage vehicles also usually have most or all their original warranty coverage still intact, which also provides comfort to the buyer.
   
• Vehicles featured in 50,000-1,00,000 km category would typically be from short-term lease returns, dealership demos, and early trade in from EV adopters that are upgrading to a newer EV model. Generally, these cars still feature the latest technology and safety equipment/ features compared to the industry's pace of battery and associated technology improvement, resulting in competitive level alternatives to new EVs.
   
• When considered from a cost-benefit standpoint, EV's in the 50,000-1,00,000 range represent ordinary value. Buyers receive help from a nearly new vehicle at a depreciated price while simultaneously avoiding the significant initial depreciation that occurs from the time a new vehicle is driven off the lot.

In 2024, China dominates the Asia-Pacific used EV market and is generating revenue of USD 7.1 billion.
 

• China holds more than 40% global market share of the used electric vehicle (EV) market. This significant share is due to the country’s large volume of production in EVs and early development in the market, which created a large number of used EVs. The government of China has heavily impacted new and used EV sales with support like "the New Energy Vehicle Industry Development Plan (2021-2035)."
   
• China's used EV market is also on the rise due to the high degree of churn in the new EV space, as consumers are constantly upgrading to new/more desirable vehicles leaving many desirable used ones. Concerned about resale value, consumers prefer to buy a used EV over a potentially higher depreciated value of a new EV. Also, newer digital platforms such as Guazi and Uxin are evolving the used car buying process to become more digitalized, increasing the speed to sell and increasing transparency with sellers.
   
• In addition, the promotion of battery health certifications by the (MIIT) or the Ministry of Industry and Information Technology has increased the resale value of used EVs by alleviating buyers' concerns significantly. Lastly, many urban areas are very densely populated. Because of this density, consumers have more IS based exposure to EVs, and their overall familiarity with charging which encourages them to buy an EV.
   

Predictions suggest that from 2025-2034, the U.S. used EV market will grow tremendously.
 

• The U.S. market for used EVs is rapidly expanding due to phenomenal demand, especially for low-cost electric mobility options. Government incentives like the Clean Vehicle Tax Credit, offering as much as $4,000 for eligible used EVs, have made used electric cars financially accessible.
   
• Growing consumer awareness continued charging infrastructure expansion, and the exit of first-generation EVs peel off from leases/fleets figuratively combust innovation and efficiency for used EV growth. California has a significant lead accounting for almost 35% of U.S. EV transactions, including used vehicles according to the U.S. Energy Information Administration. New York and Washington are actively adopted with policy, legislation, and EV engagement.
   
• The ability for retailers like Carvana and Lithia Motors to examine and recondition EVs has been a tremendous investment in the demand for used EVs. As battery range improves, and depreciation curves flatten, American used EVs will become the choice of more budget-minded and environmentally aware consumers.
   

The used EV market in Germany will experience prosperous growth during the prediction period from 2025 to 2034 in European region.
 

• Germany plays a key role in global used EVs, supported by a strong automotive industry and consumer incentives. The government has implemented incentives for consumers to purchase EVs under its Environmental Bonus Program (Umweltbonus has created a push for consumers to transition to EVs) with added interest in the secondary market as the early adopter’s upgrade to new EVs.
   
•  Country's significant growth fueled by the rigorous vehicle inspection and certification process that provides assurances in the resale market through the strict TÜV battery performance. Germany is also committed to sustainability with climate goals to meet under the government funded Federal Ministry for Economic Affairs and Climate Action (BMWK) driving the demand for EVs together in both new and used vehicles with consumer options in both segments.
   
• Dealerships, and platforms such as AutoScout24, are increasing their used EV supply and continue to gain access through digital financing options and transparency of vehicle history. Germany also has a larger pool of leased electric vehicles that are close to new with corporate and car-sharing fleets 'offloading' their inventory.
   

Used EV Market Share

• The top companies in the used EV industry are Audi, AutoScout24, BMW, MG Reassure, Lithia Motors, Evans Halshaw, and Motorway. These companies are holding around 25% of the market share in 2024.
   
• Audi, a subsidiary of Volkswagen Group, is a premium brand building with its portfolio of electric vehicles (EVs) leading with models such as the e-tron and Q4 e-tron. Its certified pre-owned program requires rigorous quality standards applied to all Audi used electric vehicles, with battery warranty being important as well as inspected in multi-point inspection criteria. Audi's "Vorsprung 2030" strategy includes a strategy around circular economy practices enhancing used EV resale values.
   
• AutoScout24 is one of the largest car marketplaces in Europe selling used EVs and the platform is used to sell used EVs across many countries including Germany, Austria and Italy. The website enables users to compare listings, provide insights for battery health with updates and access a full suite of financing tools. AutoScout24 has partnered with inspection and warranty providers trusted by consumers to improve confidence in selling a used EV.
   
• BMW has invested significant financial and human capital on its “BMW Premium Selection" program, which sells certified used EVs, like the i1, i4 and iX3. Those vehicles are fully inspected as we give battery health guarantees to increase buyer confidence. BMW's used EV strategy takes a holistic perspective and is related to its sustainability goals, for example, second life battery opportunities and responsible recycling.
   

Used EV Market Companies

Major players operating in the used EV industry include:

• Audi
• AutoScout24
• BMW
• Hyundai Motor 
• Lithia Motors 
• Recurrent Motors
• Tesla
• Mahindra First Choice
• OLX
• Tesla
• TrueCar
   

Key participants in the used EV market are actively pursuing partnership, joint, merger, acquisition or other types of strategic movements, in addition to investing development of products, to promote enhanced source use and product research and development (R&D). These strategic actions allow firms to incorporate advanced technology, automation solutions, and mechanized solutions tailored to the evolving needs of the consumer. Strategic partnerships with significant industry players enable sellers to expand their geographic presence, setting up secure latest models of significant vehicle condition.
 

Major global players are using R&D resources to promote cost efficiencies in their product development, with a view to quickly meeting aspects of market specific requirements and adapting to technological evolutions. Companies are increasingly rolling out a large product series of intelligent, efficient and affordable used EV with different positioning systems suited to different type of consumer. This availability not only provides support when engaging in new growing markets, but it ensures that each used EV is able to operate in compliance with increasing safety, environmental and operational regulations throughout different tax environments.
 

Used EV Industry News

• In March 2025, CBVC Vehicle Management, a fleet management company based in the UK, launched a leasing initiative for used electric vehicles for businesses and consumers alike. The initiative gives potential leasing customers some cost-effective and flexible EV leasing options while promoting the continued usage of used electric vehicles in the market.
   
• In February 2025, UK start-up Generational has created an advanced battery condition testing tool aimed at the second-hand EV market. The in-house technology provides correct diagnostics of battery condition, hoping to increase confidence among buyers and tackle one of the biggest fears in the used EV market.
   
• In September 2024, Tata Motors has begun working with used vehicle marketplaces to ease the resale and trade-in process for EV owners when they are selling their vehicles. This will aid Tata in its marketing and sales strategy to increase the lifecycle value proposition of its electric vehicles, and to develop the used segment of the electric vehicle market in India.
   
• In February 2024, Mobile.de, a leading automotive marketplace based in Germany, has introduced a battery certification program for used electric vehicles. The battery certification will provide prospective consumers with important battery health information to enhance the overall trust and transparency in the second-hand EV market while allowing buyers to make informed purchasing decisions.
   

The used EV market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) and volume (Units) from 2021 to 2034, for the following segments:

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Market, By Vehicle

• Passenger Cars
  • Sedan
  • SUV
  • Hatchback 
• Commercial Vehicles
  • Light commercial vehicles (LCV)
  • Medium commercial vehicles (MCV)
  • Heavy commercial vehicles (HCV)
• Two and Three Wheelers

Market, By Propulsion

• Battery electric vehicles (BEV)
• Hybrid electric vehicles (HEV)
• Plug-in hybrid electric vehicles (PEV)
• Fuel cell electric vehicles (FCEV)

Market, By Age

• Up to 3 years
• 3-5 years
• Above 5 years

Market, By Range

• Less than 50,000
• 50,000-100,000 km
• Above 100,000 km

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Benelux
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • South Africa
  • Saudi Arabia
  • UAE