Used EV Prices Spike as Gasoline Costs Surge, but Electricity Rates Also Rise
In the United States, the average gasoline price has surged 57% this year, reaching $4.58 per gallon, with California exceeding $6. This increase has led to a rise in demand for used electric vehicles (EVs), resulting in a 3.4% increase in wholesale prices in April, now at $29,453, following a 3.9% rise in March. Year-over-year, EV wholesale prices have risen by 7.8%, as reported by the Manheim Used Value Index. Currently, the EV index stands nearly $10,000 above the ICE vehicle index, which remains unchanged at $19,897. Supply sources include rental fleets, finance companies, and government fleets. Although EV prices more than doubled during the Tesla flipping trend from 2021 to 2022, a similar surge seems unlikely now due to the availability of more new EVs. Nonetheless, consumer habits are evolving. Additionally, electricity prices have increased by 41% since January 2020, which somewhat diminishes the benefits of reduced gasoline prices.
Key facts
- US average gasoline price spiked 57% this year to $4.58 per gallon.
- California gas stations sell regular for over $6 per gallon.
- Used EV wholesale prices rose 3.4% in April to $29,453.
- Used EV prices rose 3.9% in March and 7.8% year-over-year.
- Manheim Used Value Index shows EV index nearly $10,000 higher than ICE index.
- ICE vehicle index was $19,897, nearly flat in April and up 1.9% year-over-year.
- Electricity prices have soared 41% since January 2020.
- Gasoline prices have increased 70% since January 2020.
Entities
Institutions
- Manheim Used Value Index
- Consumer Price Index
Locations
- United States
- California