Prices of Used EVs Spike, From Already Lofty Levels, as Gasoline Prices Spike. But Electricity Prices Also Soared

Key Takeaways

• Used EV wholesale price rose 3.4% in April to $29,453.
• Year‑over‑year EV auction prices up 7.8%, outpacing ICE vehicles.
• EV price gap now about $10,000 above ICE wholesale index.
• Gasoline up 57% YTD, electricity CPI up 41% since 2020.
• Higher electricity costs erode EV operating‑cost advantage.

Pulse Analysis

The sharp jump in gasoline prices has reshaped the used‑car market, especially for electric models. Dealers sourcing inventory from rental fleets, lease returns, and repos are seeing auction prices for used EVs rise for a second consecutive month. This price momentum is driven less by consumer splurging and more by a strategic shift toward lower‑fuel‑cost vehicles as gasoline reaches record highs. The Manheim Used Value Index now places EVs nearly $10,000 above comparable ICE vehicles, underscoring a growing valuation premium.

However, the EV cost equation is becoming more nuanced. While gasoline’s 57% year‑to‑date increase tilts operating expenses toward electric power, electricity rates have not remained static. The Consumer Price Index shows a 41% rise in electricity costs since 2020, fueled by heightened demand from data centers and other high‑intensity users. This upward pressure on electricity bills narrows the total‑cost‑of‑ownership gap that once made EVs a clear financial win, prompting buyers and fleet managers to scrutinize charging infrastructure and rate plans more closely.

Looking ahead, the interplay between fuel and electricity prices will shape market dynamics. If gasoline remains volatile while electricity stabilizes or falls through renewable integration and policy incentives, used EV demand could sustain its upward trajectory. Conversely, persistent electricity price growth may dampen the appeal of EVs, especially for cost‑sensitive segments. Stakeholders should monitor energy price trends, regulatory developments, and the expanding supply of new EVs, which could eventually ease used‑EV premiums and broaden adoption across the broader automotive landscape.