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

• The Manheim Used Vehicle Value Index shows wholesale EV prices have risen every month in 2026, reaching an average of $30,400 (up 11.5% year-to-date), while non-EV prices averaged $19,125 (up less than 1%)
• U.S. gas prices are up roughly 21% year-over-year to a national average of $3.80 per gallon, fueling consumer shift toward used EVs with retail units sold up 24.7% year-over-year in May
• An influx of off-lease EVs expected later in 2026 could pressure prices downward, though sustained high gas prices may maintain demand; Tesla models led used EV sales with 15,353 units sold in May

Summary: Used EV Prices Surge Amid Iran Conflict and Rising Gas Costs

Key Developments:

Used electric vehicle prices are experiencing significant increases due to heightened demand driven by the Iran war and elevated U.S. gas prices, according to Cox Automotive data released Wednesday.

Critical Figures:

• The Manheim Used Vehicle Value Index for EVs jumped 12% in the most recent month versus June 2025, compared to just 1.7% for non-EVs
• Year-to-date wholesale EV prices have risen 11.5% to approximately $30,400
• Non-EV wholesale prices increased less than 1% year-to-date, averaging $19,125
• Average used EV retail listing price reached $37,083 as of May
• National gas prices are up roughly 21% year-over-year to $3.80 per gallon

Market Activity:

Used EV sales totaled 42,923 units in May, representing a 5.5% month-over-month increase and 24.7% year-over-year growth. Tesla led sales with 15,353 units, followed by Hyundai, Chevrolet, Ford, and BMW.

Market Implications:

The strong used EV performance contrasts sharply with new EV sales, which saw significant declines in Q2 2026. This divergence reflects consumer preference for more affordable pre-owned options amid economic pressures.

Analysts warn that an anticipated surge of off-lease EVs entering the market later this year could pressure prices if gas costs decline. The elimination of federal EV incentives (up to $7,500) in September of the previous year continues to impact new vehicle demand.

Outlook:

Gas prices remain the critical variable determining future pricing trends, with escalating Middle East conflict adding volatility to energy markets and sustained upward pressure on used EV demand.