The latest sales figures for electric vehicles paint a bleak scenario — at least for newly sold EVs. Sales of brand-new electric vehicles experienced a significant decline in the first quarter, plummeting approximately 28% year-over-year after the Trump administration eliminated the $7,500 tax credit for consumers, as reported by Cox Automotive.

In contrast, used electric vehicles are trending upwards. A couple of factors have coincided to fuel this surge in sales.

Sales of pre-owned EVs rose by 12% compared to the same period last year, according to the same report from Cox Automotive. There’s also a shorter-term upward trend; used EV sales jumped 17% from the fourth quarter to the first quarter.

The escalating price of gasoline — currently averaging over $4 per gallon — has contributed to increased interest and sales in electric vehicles. However, there’s another element influencing this trend as consumers look for budget-friendly choices: a surplus of expiring leases, as reported by the Financial Times. EV leases were quite popular in the early 2020s, and with their expiration, hundreds of thousands of previously owned EVs are flooding the market. Consumers are eager to purchase them.

By year-end, electric vehicles are expected to make up 15% of all off-lease vehicles, a substantial rise from 7.7% in the first quarter, according to the FT.

The classic economic principle of supply and demand held firm; the influx of used vehicles contributed to price reductions, providing an additional boost to those sales. This has resulted in price equivalence — or nearly so — with traditional internal combustion engine vehicles. As per Cox Automotive, the average cost of a used EV stands at $34,821, while the gas-engine equivalent is priced at $33,487.