Demand for used electric vehicles (EVs) is escalating due to the ongoing conflict in Iran and rising gas prices in the United States, resulting in increased prices for pre-owned electric models. According to recent data from Cox Automotive, the Manheim Used Vehicle Value Index indicated a 12% rise in prices for used EVs in July compared to the previous month, while non-EVs saw only a 1.7% increase. This marks a continued trend, with wholesale EV prices climbing by 11.5% this year to average approximately $30,400, while non-EVs have seen a modest $19,125.
As of May, the average retail price of used EVs was recorded at $37,083. The demand is reflected in the sales statistics, with 42,923 used EVs sold in May, showing a 5.5% month-over-month and a 24.7% year-over-year increase. Tesla remains a market leader with 15,353 units sold, followed by Hyundai, Chevrolet, Ford, and BMW.
Cox Automotive’s Jonathan Gregory noted that the trajectory of gas prices could significantly affect future pricing for vehicles, especially as a new wave of off-lease EVs is anticipated later this year. The national average gas price stands at $3.80 per gallon, up 21% from a year prior, influencing consumer preferences toward EVs.
Despite the surge in used EVs, new EV sales have reportedly declined in the second quarter, as many manufacturers pull back on new EV investments after initial spikes in demand during the previous year.
Why this story matters: Increased demand for used EVs highlights a shift in consumer behavior due to rising gas prices and geopolitical conflicts.
Key takeaway: The price and demand for used EVs are significantly outpacing those of non-EVs, while new EV sales are declining.
Opposing viewpoint: The rising supply of off-lease EVs could lead to a decrease in demand and price stabilization for used models.
