Used electric vehicles (EVs) in the U.S. are experiencing significant price increases due to heightened demand amid the ongoing Iran war and rising gasoline costs. According to Cox Automotive, its Manheim Used Vehicle Value Index for EVs, which tracks wholesale prices at auctions, rose by 12% in June 2026 compared to the previous year, far outpacing the 1.7% increase seen for non-EVs. This trend has driven average wholesale prices for used EVs up to approximately $30,400, while non-EVs have remained relatively flat in comparison.

Despite the surge in used EV values, sales of new electric vehicles have declined sharply this quarter, presenting a contrasting market environment. Automakers have reported reduced new EV sales following a peak in demand last year linked to consumer incentives that expired in September 2025. The boost in used EV prices is attributed largely to consumers shifting toward electric models as gas prices remain high, with the national average fuel cost about 21% above last year at $3.80 per gallon.

Tesla leads the used EV sales market, with an estimated 15,353 units sold in May 2026, followed by Hyundai, Chevrolet, Ford, and BMW. The overall used EV sales volume recorded was 42,923 units in May, showing a monthly increase of 5.5% and a nearly 25% rise year-over-year. Cox Automotive notes that used EVs now hold 2.8% of the total used vehicle market share, emphasizing their growing presence among pre-owned cars.

Looking ahead, industry experts warn that the influx of off-lease EVs expected later this year could impact prices despite current high demand. Jonathan Gregory of Cox Automotive highlights gas prices as a critical factor influencing the market; if fuel costs decline, EV demand might soften even as more used vehicles become available from lease returns. This dynamic will be crucial to monitor for shifts in the used EV landscape in the second half of 2026.