Used EVs keep getting more expensive amid Iran war, high gas prices

DETROIT – The Iran war and high U.S. gas prices are causing a surge in demand for used all-electric vehicles, which is making the pre-owned vehicles more expensive, according to Cox Automotive.

The company on Wednesday reported that its Manheim Used Vehicle Value Index for EVs — which tracks prices of used vehicles sold at its U.S. wholesale auctions — increased 12% last month compared with June 2025. That compares with a 1.7% increase for non-EVs over the same period.

Wholesale EV prices have increased every month this year, leading to an 11.5% jump in average pricing to roughly $30,400, according to Manheim. Non-EVs, meanwhile, have seen a less than 1% increase this year in average pricing, to $19,125, Manheim said.

The average used EV listing price as of May at $37,083, according to Cox’s Kelley Blue Book. Retail prices for consumers traditionally follow changes in wholesale prices.

“EVs continue to show strong performance, while prices for SUVs and Pickups falter compared to this time last year,” Manheim said in a release.

Cox reports used EV sales to consumers reached 42,923 units in May, up 5.5% month over month and 24.7% year over year, with used EV market share holding at 2.8%. Tesla models are estimated to have led with 15,353 units sold, followed by sales of Hyundai, Chevrolet, Ford and BMW all-electric vehicles.

Jonathan Gregory, senior director of Cox Automotive, said gas prices are expected to continue to determine whether vehicle costs will rise amid an expected influx of off-lease EVs coming later this year.

A growing number of used EVs are expected to the market through the end of the year after automakers bumped up their sales of all-electric vehicles with leasing offers three years ago.

“The risk we’re watching for the second half is that steep ramp in off-lease supply, EVs especially, which could pressure specific segments even as the headline holds firm. Gas is the swing factor: If pump prices keep falling, some of that EV demand could fade as availability increases,” Gregory said.

AAA reports the national average for gas prices is up roughly 21% compared to a year ago, to a national average of $3.80 a gallon. Those prices have come down from recent highs, but escalating combat in Iran caused oil prices to jump Wednesday.

The increased demand and rise in used EV prices are contrary to those of new all-electric vehicles. Many automakers reported that they saw sharp sales declines for new EVs during the second quarter.

Aside from automakers pulling back billions of dollars for new EVs, the year-over-year comparison is difficult. EV demand began to spike last year during the second quarter ahead of expectations that the Trump administration would end up to $7,500 in incentives for consumers to purchase an EV.

The incentives ended in September, and EV sales spiked to roughly 10% of all vehicles sold that month before plummeting later in the year.