Data from Cox Automotive indicates that demand for used battery-electric vehicles has surged, pushing their prices higher, influenced by geopolitical tensions involving Iran and persistently high gasoline prices in the United States.
The Manheim Used EV Value Index, which tracks wholesale auction prices across the nation, showed a 12% year-over-year increase in June, while the index for used internal combustion engine vehicles rose only 1.7% over the same period.
This trend in the used EV market stands in stark contrast to the new electric vehicle sector, where multiple automakers have reported significant sales declines in the second quarter.
On July 2, 2026, in South Pasadena, California, several Tesla Motors (TSLA) vehicles were seen charging at a Supercharger station. Despite the company's strong delivery figures, its stock closed down 7.5% that day.
Cox Automotive analysts state that the conflict in Iran, combined with sustained high US fuel costs, has triggered a sharp increase in demand for used pure electric vehicles, leading to a continued rise in their selling prices.
Data released by the firm on Wednesday showed that the electric vehicle component of its Manheim Used Vehicle Value Index rose 12% year-over-year in June. In contrast, wholesale prices for used gasoline-powered vehicles increased by just 1.7% during the same period.
Manheim's figures reveal that used EV wholesale prices have climbed month-over-month this year, with the average price accumulating an 11.5% increase to approximately $30,400. The average price for used combustion engine vehicles has risen less than 1% for the year, standing at about $19,125.
According to Cox's Kelley Blue Book, the average retail listing price for a used EV reached $37,083 in May. Retail price trends typically follow movements in wholesale prices.
Manheim noted in its report, "Electric vehicle values continue to show strength, while SUV and pickup truck prices are weaker compared to last year."
Cox's data indicates that retail sales of used EVs reached 42,923 units in May, up 5.5% from the previous month and surging 24.7% year-over-year. The used EV market share held steady at 2.8%. Tesla Motors (TSLA) models led with 15,353 units sold, followed by electric models from Hyundai, Chevrolet, Ford, and BMW.
Jonathan Gregory, a senior director at Cox Automotive, noted that a large volume of off-lease electric vehicles is expected to enter the market in the second half of the year, and the trajectory of gasoline prices will continue to be a key factor influencing used vehicle market dynamics.
Three years ago, automakers heavily promoted EV leasing programs, and a significant number of these leased vehicles are set to return to the market by year-end as their terms expire.
Gregory commented, "We are closely monitoring the risk of a concentrated influx of off-lease vehicles in the latter half of the year. Even if overall used EV prices remain firm, specific models could face downward pressure. Gasoline prices are the critical variable: if fuel costs continue to decline, coupled with increased used vehicle supply, demand for electric vehicles could cool."
Data from the American Automobile Association (AAA) shows the national average gasoline price is about 21% higher than a year ago, at $3.80 per gallon. While prices have retreated from recent peaks, escalating conflict in Iran drove crude oil prices sharply higher again on Wednesday.
The robust demand and rising prices for used electric vehicles present a sharp divergence from the new EV market. Financial reports from several automakers show substantial declines in sales of new electric vehicles during the second quarter.
This decline is attributed to automakers scaling back billions in new EV investments and a challenging year-over-year comparison due to an artificially high base in the same period last year. In Q2 of the prior year, a buying frenzy was spurred by market anticipation that the Trump administration would eliminate the federal tax credit of up to $7,500 for electric vehicle purchases.
That incentive officially expired last September. In that month, EVs briefly accounted for 10% of total new vehicle sales, after which sales volume dropped significantly.
Comments