AI Generated Image
Used EVs keep getting more expensive amid Iran war, high gas prices
CNBC • • business
Key Points:
- The Iran war and high U.S. gas prices are driving increased demand for used all-electric vehicles (EVs), causing wholesale EV prices to rise by 12% in June 2025 compared to the previous year, according to Cox Automotive.
- Used EV prices have climbed steadily throughout the year, with average wholesale prices reaching about $30,400, significantly higher than non-EVs, which saw less than a 1% increase to $19,125.
- Used EV sales rose 24.7% year-over-year in May, with Tesla leading sales, followed by Hyundai, Chevrolet, Ford, and BMW, while overall used EV market share held steady at 2.8%.
- An influx of off-lease EVs expected later this year may put downward pressure on prices, especially if gas prices decline, which could reduce EV demand despite current strong performance.
- New EV sales have declined sharply in the second quarter, partly due to the end of federal incentives in September 2024 and automakers reducing investments, contrasting with the rising prices and demand in the used EV market.
