Used EV prices climb as gas costs put buyers on the hunt
Cox Automotive says used electric vehicles are getting pricier as high gas prices and the Iran war lift demand.
By Sal Moretti · Money Reporter
3 min read
Used electric vehicles are getting more expensive as drivers react to high U.S. gas prices and the Iran war, according to Cox Automotive.
Cox said Wednesday that its Manheim Used Vehicle Value Index for EVs rose 12% in June from a year earlier. That is a far sharper move than the 1.7% increase for non-electric vehicles over the same period.
The index tracks vehicles sold through Manheim’s U.S. wholesale auctions, making it a closely watched read on pricing before changes show up more widely on dealer lots.
Manheim said wholesale EV prices have climbed every month this year. Average pricing is now up 11.5% to about $30,400, according to the company. Non-EVs have barely budged by comparison, with average pricing up less than 1% this year to $19,125.
For shoppers, the sticker shock is already visible. Cox’s Kelley Blue Book put the average used EV listing price at $37,083 as of May. Retail prices often trail wholesale moves, so the auction jump could keep pressure on consumer prices.
Manheim said in a release that EVs continued to perform strongly, while prices for SUVs and pickups were weaker than a year earlier.
Tesla leads used EV sales
Cox said used EV sales to consumers hit 42,923 units in May, up 5.5% from April and 24.7% from a year earlier. Used EVs held a 2.8% share of the market, according to the company.
Tesla models led the category with an estimated 15,353 used units sold, Cox said. Hyundai, Chevrolet, Ford and BMW electric models followed.
The used EV market may get more complicated later this year. Jonathan Gregory, senior director at Cox Automotive, said gas prices are expected to play a major role as more off-lease electric vehicles arrive.
Automakers increased EV leasing three years ago through lease offers, and Cox expects more of those vehicles to come back to the used market through the end of the year.
Gregory said Cox is watching the risk of a steep increase in off-lease supply, especially for EVs, which could weigh on parts of the market even if broader used-vehicle pricing stays firm. He said gas remains the swing factor, adding that if pump prices keep dropping, some EV demand could fade as availability rises.
Gas is still up from last year
AAA said the national average for gasoline is about $3.80 a gallon, roughly 21% higher than a year ago. Prices have eased from recent highs, but oil prices jumped Wednesday as fighting in Iran escalated, according to the report.
The surge in used EV demand cuts against the direction of the new EV market. Many automakers reported sharp second-quarter sales declines for new electric vehicles.
Those comparisons are difficult because EV demand climbed during the second quarter of last year ahead of expectations that the Trump administration would end consumer purchase incentives of up to $7,500.
Those incentives ended in September. EV sales rose to roughly 10% of all vehicles sold that month, then fell later in the year, according to the report.
Automakers have also pulled back billions of dollars in planned spending on new EVs, adding another twist to a market where used electric models are suddenly the hotter ticket.
This story draws on original reporting from CNBC.