Tapping the Used EV Market to Reduce GHG Emissions on CA Roadways

According to the LA Times, California’s greenhouse gas emissions fell 2.4% in 2022, with over half of that drop attributed to increased EV adoption that displaced gasoline use and cut tailpipe emissions to near zero. By incentivizing the purchase of used EVs, especially in areas most impacted by tailpipe pollution, California can reduce harmful emissions in disadvantaged communities while accelerating progress toward statewide climate goals.

Some key findings about the used EV market in CA:

• EVs show Rapid market re-entry: Over 40% of new EVs are re-sold within three years in California, much faster than the average of 5.2 years for conventional vehicles.
• Used EV market is poised for growth: Used EV sales grew 36% from 2019 to 2022, even though buyers then had fewer model choices with shorter battery ranges. Today, the used EV market offers many more brands, longer ranges and appealing features.
• New EV sales are booming: New EV sales increased 117% between 2019 and 2022. In 2024, EVs accounted for 27% of all new vehicle sales in California, the highest rate in the nation. This strong sales performance creates a steady stream of future used EVs.
• High-end EV models are becoming affordable: Frequent technological upgrades by early adopters are putting longer-range, luxury EVs within reach of a wider range of buyers. In fact, our research indicates that a higher percentage of luxury EV models have are resold than lower-end brands./li>
• Equity gap creates primed target audience: Low- and moderate-income (LMI) buyers comprised 43% of all used vehicle purchases in 2022 but only 15% of those were electric vehicles.
• Lease trends boost used EV supply: Nationally, lease rates for EVs reached 39%, which surpassed those for conventional vehicles in 2024 (21%), meaning more late-model EVs will enter the used market as leases expire.

What This Means

By incentivizing California’s used EV market, the state can build on record new EV growth and rapid resale turnaround to cut harmful emissions in the communities that need relief most. Targeted programs and stronger infrastructure are essential to turning this opportunity into real climate impact.