Renewed consumer interest in EVs is driving up prices and demand in the auction lanes.
What we know: The Manheim Used Vehicle Index released Thursday showed a 7.2% year-over-year increase in the index for EVs and a 1.4% surge since March, likely driven by high fuel prices and consumers looking for affordable options.
Used EV prices have jumped from $422 in the past month to $28,923.
The 7.2% increase YOY for EVs is easily outpacing prices for non-EVs, which grew by 1.1% compared to April 2025.
According to Cox Automotive: Chief Economist Jeremy Robb told CDG the EV data is defying the usual trends for April after tax refund season.
“Usually, Manheim prices rise some in Q1, then start to fall after tax refund season. And the non-EV group is doing that, but the 3-year-old EV group is not and has now outperformed non-EVs for five weeks in a row,” he said.
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Zooming in: Inventory of used EVs is expected to increase throughout the year as more 3-year-old vehicles come off lease. However, demand is also expected to remain elevated, given that gas prices have risen above $4.50 and are up 53% since the end of February, when the conflict in the Middle East began.
“[Gas prices are] likely pushing many more consumers towards EVs that are used,” Robb said. “They’ve also depreciated more than non-EVs over the last three years, so consumers get much more value for what they spend relative to the initial new MSRP; even if they do cost a bit more than non-EVs in dollar terms.”
Also to consider: While EV interest is peaking among dealers and consumers, the overall wholesale inventory improved slightly in April. Days of inventory increased by 0.3 days, from 24.9 in March to 25.2. Conversion rates in the Manheim lanes were a robust 63.7%, which is 3.3% higher than the three-year average for April.
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