The retail supply of used electric vehicles last month was at its lowest point in nearly three years and down 11% from May 2024, suggesting rising consumer demand that could “reshape pricing and remarketing strategies” in coming months.

That’s according to the latest EV Market Monitor from Cox Automotive, which found narrow gaps between both the supply and prices of used EVs and used internal combustion engine vehicles.

And though they remain a small piece of the overall pre-owned vehicle market, grabbing a 2.2% share in May, used EV sales continue to rise.

There were 36,609 used EV sales in May, Cox said, which beat April figures by 1.1% and were 32.1% higher year-over-year.

Stephanie Valdez Streaty, director of industry insights at Cox Automotive, wrote in the report that, “the used EV market continued its upward trajectory, driven by affordability and consumer confidence.”

Tesla, which Cox estimates had a 49.6% share of the used EV market in May, led the best-seller rankings last month, with the Model 3, Model Y, Model S and Model X cracking the top five.

“The used EV market continues to be dominated by Tesla-brand products, but we expect that to shift in the coming years,” Valdez Streaty said.

Days’ supply of used EVs in May fell to 40, which is a 3.4% month-over-month drop and an 11% drop from May 2024, Cox said. This is the lowest the supply of used EVs has been since June 2022 and is only 4 days less than used ICE vehicles.

“This tightening supply landscape suggests growing consumer interest in used EVs, signaling a potential shift in demand dynamics that could reshape pricing and remarketing strategies in the months ahead,” Valdez Streaty said.

Average used EV listing prices, meanwhile, went up 2.6% year-over-year and 0.9% month-over-month, coming in at $36,053, according to Cox. But they continue to be only a bit more expensive than ICE vehicles, with May’s gap at $1,848.

“As the used EV market matures, price trends are increasingly shaped not only by brand dynamics but also by shifting consumer priorities around value, range, and long-term ownership costs,” Valdez Streaty said.