Al Root
Four-dollar gas prices are one thing. Rising used car prices are another.
Shoppers might want to consider a used electric vehicle at least to lessen the pain at the pump.
On Tuesday, Cox Automotive released the latest Manheim Used Vehicle Value Index, a common measure of used-car pricing. The index came in at 215.3 in March, up 5% year over year and the highest level since May 2023.
The increase was broad-based.
"All major vehicle segments are above year-earlier levels; however, the luxury segment continues to outperform the overall market," said Jeremy Robb, Cox Automotive's chief economist, in a news release. "Compact cars and trucks continue to see relatively weak price growth compared to this time last year."
Used car prices peaked in early 2022. That's partly because the Covid-19 pandemic had led to a steep decline in new car sales in 2020 -- draining the amount of used cars available to purchase a few years later.
Still, used car prices remain about 40% above prepandemic levels, while new car prices have climbed about 30%. Anyone trying to buy a vehicle already knows that. What they might not know is that a used electric vehicle could be a good deal.
"We expect dealers are anticipating increased interest for used EVs as gas prices have now risen above $4.00 per gallon," added Robb. "Dealers are stocking up on EV inventory."
Used EVs are still more expensive than used gasoline-powered cars, but they are cheaper to operate and maintain, and that gap grows as oil prices rise. What's more, the outlook for used EV prices might be going in buyers' favor. Many EVs are leased, a legacy of how the federal government's former $7,500 purchase tax credit was administered. That means a lot of 2023 EVs are about to come off lease, and more supply could push prices down in the coming months.
EV buyers have been looking for value lately. Used EV sales rose to 93,500 vehicles in the first quarter, up from less than 84,000 a year ago. The increase comes as new EV sales are collapsing. Americans bought about 213,000 new all-electric cars in the first quarter, down from almost 300,000 a year ago.
With gasoline at $4 per gallon, an EV buyer might save $1,000 to $2,000 per year, depending on the price of their electricity. That can make the payback period for a used EV only one or two years. It might take three years to get the higher upfront cost of an EV back, when buying new.
That can help car buyers save a little money down the road. Still, there's no easy way to save money on cars these days.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 07, 2026 11:06 ET (15:06 GMT)
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