The used EV market is experiencing a unique dynamic, with prices soaring amidst the backdrop of the Iran war and soaring gas prices. This trend is particularly intriguing, as it contrasts sharply with the sales of new EVs, which have seen a decline in the second quarter. The Cox Automotive report reveals that the Manheim Used Vehicle Value Index for EVs increased by 12% in June 2026 compared to the same month in 2025, while non-EVs saw a modest 1.7% increase. This disparity is further emphasized by the average pricing, with EVs jumping 11.5% to $30,400, while non-EVs saw a less than 1% increase to $19,125. The average used EV listing price as of May was $37,083, and retail prices for consumers traditionally follow wholesale price changes. This surge in used EV prices is not just a temporary blip but a reflection of broader economic and geopolitical factors. The Iran war has caused oil prices to fluctuate, and high gas prices are driving consumers towards EVs as a more cost-effective and environmentally friendly alternative. This shift in consumer behavior is particularly interesting, as it suggests that the market is responding to external factors in ways that may not be immediately apparent. The rise in used EV prices also raises questions about the sustainability of the EV market. As automakers ramp up their sales of EVs with leasing offers, the influx of off-lease EVs into the used market could put pressure on specific segments. The risk, as Cox Automotive's Jonathan Gregory points out, is that the steep ramp in off-lease supply could lead to a decline in EV demand if pump prices continue to fall. This dynamic highlights the complex interplay between supply and demand in the EV market. The contrast between the used EV market and the new EV market is particularly striking. While new EVs have seen a decline in sales, the used EV market is experiencing a surge in demand and prices. This disparity suggests that the market is responding to external factors in ways that may not be immediately apparent. The rise in used EV prices also raises questions about the future of the EV market. As the market matures, the influx of off-lease EVs could lead to a more competitive landscape, with used EVs becoming a more attractive option for consumers. However, the risk of a decline in demand due to falling pump prices could also impact the used EV market. In my opinion, the rise in used EV prices is a fascinating development that highlights the complex dynamics of the EV market. It is a reflection of broader economic and geopolitical factors, and it raises questions about the sustainability of the EV market. The contrast between the used EV market and the new EV market is particularly striking, and it suggests that the market is responding to external factors in ways that may not be immediately apparent. As the market continues to evolve, it will be interesting to see how the dynamics of the used EV market play out and whether the influx of off-lease EVs will lead to a more competitive landscape. Personally, I think the rise in used EV prices is a sign of the market's resilience and adaptability. It is a testament to the growing demand for EVs and the willingness of consumers to embrace new technologies. However, it also raises questions about the future of the EV market and the impact of external factors on the sustainability of the market. In my view, the used EV market is a fascinating and dynamic sector that is worth watching closely as it continues to evolve and adapt to changing economic and geopolitical conditions.
