New electric vehicle sales in the United States fell sharply in September 2026, while used EVs set a record — a split that tells a more interesting story than either headline alone. According to Cox Automotive’s September 2026 EV Market Monitor, reported by DaxStreet, estimated new EV sales reached 86,632 units, down 40.7% from 146,076 vehicles in September 2025.
The comparison needs context. September 2025 was unusually strong because buyers brought purchases forward ahead of the expiration of federal EV tax credits on September 30, 2025. When that surge passed, the year-on-year comparison became much less favourable, even for a market that is not collapsing. A separate analysis in The Conversation, drawing on Argonne data, put August 2026 EV sales at 86,000, down from 101,000 in May, while hybrid sales stayed above 216,000 a month all summer.
Average transaction prices remain a barrier. Cox Automotive reported an average transaction price of $55,842 for new EVs in September 2026, according to DaxStreet, while Kelley Blue Book data cited in The Conversation put the average new car at about $50,000 and the average new EV at about $55,000.
Why used EVs are booming instead
When new EVs get expensive and incentives disappear, buyers look second-hand. Used EV inventories have tightened — only 31 days of supply in May, 23% below the year before, according to The Conversation — yet sales set a record, suggesting demand is real but price-sensitive. A three-year-old EV with a healthy battery can offer most of the fuel savings at a fraction of the new price, and depreciation has already done its worst work.
Hybrids are the other beneficiary. With no charger needed and fuel economy above 50 mpg in the best sedans, hybrids captured buyers who wanted lower fuel bills without the new-EV price tag or charging uncertainty. That is why hybrid sales held above 216,000 a month while EV sales slipped.
What this means for buyers
If you are shopping now, the new-EV market favours negotiators: discounts of $7,000 to $10,000 on three-row SUVs show dealers want to move metal. If you are open to used, get a battery-health report before buying — it is the EV equivalent of a mileage check. And if neither fits, a hybrid sedan at $26,000 to $30,000 remains the lowest-risk way to cut fuel costs this year.
