A Tesla EV charges at a Tesla Supercharger station on July 2, 2026 in South Pasadena, California.
Tama Mario | Getty Images
DETROIT — Cox Automotive says the Iran war and rising U.S. gas prices have led to a surge in demand for used all-electric vehicles, driving up used car prices.
The company reported Wednesday that EV’s Manheim Used Car Value Index, which tracks the prices of used cars sold at wholesale auctions in the United States, rose 12% last month compared to June 2025. This compares to a 1.7% rise in non-EVs over the same period.
Manheim said wholesale prices for EVs have increased every month this year, with the average price increasing 11.5% to about $30,400. Meanwhile, the average price increase for non-EV vehicles this year was less than 1%, to $19,125, Manheim said.
According to Cox Kelley Blue Book, the average listing price for a used EV in May was $37,083. Retail prices for consumers traditionally track changes in wholesale prices.
“While EVs continue to perform well, prices for SUVs and pickup trucks are lower than they were at this time last year,” Mannheim said in a release.
According to a report by Cox, the number of used EVs sold to consumers in May reached 42,923 units, an increase of 5.5% from the previous month, an increase of 24.7% from the same month last year, and a used EV market share of 2.8%. tesla Sales were the highest with 15,353 units, followed by all-electric vehicles from Hyundai, Chevrolet, Ford and BMW.
Jonathan Gregory, senior director at Cox Automotive, said gas prices are expected to continue to determine whether vehicle costs rise with an expected influx of lease-off EVs later this year.
The number of used EVs on the market is expected to increase through the end of the year, after automakers ramped up sales of fully electric cars on lease contracts three years ago.
“The risks we are looking at in the second half of the year are a sharp increase in off-lease supply, particularly for EVs, which could put pressure on certain segments even with strong headlines. The variable is gasoline. If pump prices continue to fall, some of the EV demand could disappear as supply availability increases,” Gregory said.
AAA reports that the national average for gasoline prices is up about 21% from a year ago, bringing the national average to $3.80 per gallon. Although these prices are down from recent highs, the escalating fighting in Iran sent oil prices soaring on Wednesday.
The increasing demand and rising prices for used EVs are at odds with the increasing demand for new fully electric vehicles. Many automakers reported a significant drop in sales of new EVs in the second quarter.
Year-over-year comparisons are difficult, except that automakers are pulling back billions of dollars on new EVs. EV demand began surging last year in the second quarter ahead of expectations that the Trump administration would eventually give consumers up to $7,500 in EV purchase incentives.
The incentives ended in September, and EV sales soared to about 10% of all vehicles sold that month, but fell sharply by the end of the year.
