The wholesale price index for used EVs hit $31,156 in June, 61% higher than for used ICE vehicles. Consumers are splurging to buy used EVs.

By Wolf Richter for WOLF STREET.

The spike in gasoline prices that was triggered just about instantly at the beginning of the Iran war had a near real-time impact on the demand for used EVs, or at least the perceived demand for used EVs, as used-vehicle dealers instantly began bidding up prices of EVs at wholesale auctions, in March already. Wholesale EV prices spiked by 3.9% in March from February, and by 3.4% in April from March, and by another 3.9% in May from April, and by 1.8% in June from May, to $31,156, after being relatively flat for all of 2025, according to the Manheim Used Value Index. Manheim, a subsidiary of Cox Automotive, is the largest auto-auction house in the US.

That amounts to a 13.7% four-month price spike through June. It caused the year-over-year measure to spike 13.6%.

ICE vehicle wholesale prices, during those same four months through June, rose by only 1.2%. Year-over-year, they were up by 1.8%. That market has behaved normally.

Supply at these auctions comes from rental fleets that sell vehicles they pulled out of service, from finance companies that sell their off-lease vehicles and repos, from corporate and government fleets, etc. Dealers buy at these auctions to replenish or build their inventories.

Used EVs are still just a small but growing component of the overall used-vehicle market, so the impact of that EV price spike on overall used vehicle price indices was still small.

The overall Manheim Used Vehicle Value Index, in which EVs are still a relatively small component, dipped in May and June, not seasonally adjusted (red in the chart below), and seasonally adjusted rose a hair over those two months (blue).

Year-over-year, the index rose by 2.9% not seasonally adjusted, composed of the 13.6% year-over-year increase for EVs and the 1.8% year-over-year increase for ICE vehicles.

But when that relatively small supply of used EVs was met by suddenly increased demand from dealers, these dealers bid up the prices against each other, confident that they can sell those EVs for even more to their retail customers.

Interestingly, the surge of EV wholesale prices is not because consumers cannot afford the gasoline and therefore favor EVs. These used EVs are much more expensive than used ICE vehicles, and consumers are actually splurging to fork over the extra cash to buy them.

The wholesale price index for EVs, at $31,156 in June, was $11,855 higher, or 61% higher, than the index for ICE vehicles, which dipped along seasonal trends to $19,301 in June (not seasonally adjusted).

EV prices had already spiked majestically in 2021 to mid-2022, when gasoline prices more than doubled and stories of “Tesla flipping” broke the internet, where people bought a new Tesla and flipped it as a used vehicle for more money, craziest times in the car business ever.

What is different now is that there are a lot more EV models going through the wholesale auctions, and a lot more volume, than in 2021/2022.

Dealers in aggregate generally have a pretty good sense of where demand and pricing in the retail market are, and when they buy at auction to replenish or build their inventories, they buy to satisfy those conditions that they see. But they can – and do – get caught on the wrong foot occasionally and end up with overpriced inventory.

And if you missed it: My Take on the Zero-Sum New-Vehicle Market: Decades of Stagnation & Decline Interrupted by Steep Plunges. But Not all Automakers Are Losers in this Tough Market

Enjoy reading WOLF STREET and want to support it? You can donate. I appreciate it immensely. Click on the mug to find out how: