From Tesla to Kia, used EV prices climb with gas prices since Iran war

Used electric vehicle (EV) and hybrid prices have risen sharply since the Iran war triggered higher gas prices in late February, according to data analyzed by CarGurus. Kevin Roberts, director of economic and market intelligence at CarGurus, tracked vehicle trends from February 28 through April 30, noting that gas price increases coincided with a surge in demand for fuel-efficient alternatives. Several high-demand models experienced steep price hikes, including the Tesla Model X, which saw its average price jump over $6,000. The Rivian R1S, Porsche Taycan, Ford Mustang Mach-E, and Kia EV9 also saw elevated prices due to tight supply, reduced inventory, or higher asking prices for newer models. Roberts explained that limited availability—such as a 20% drop in Porsche Taycan listings—pushed averages upward, while newer models entering the used market at premium prices further inflated costs. The trend reflects broader shifts in consumer behavior, with rising gas prices accelerating interest in EVs. Roberts cautioned against overinterpreting the correlation but acknowledged that search traffic for EVs and hybrids spiked in March and April compared to earlier months. Used traditional internal combustion engine vehicles also saw price shifts, though EVs remain a competitive option. Despite the price increases, Roberts argued that used EVs still offer strong value. They tend to have fewer miles and are younger than comparable gas-powered vehicles, making them a cost-effective choice. Additionally, the price gap between new EVs and internal combustion engine (ICE) vehicles has narrowed, with new EV premiums dropping to a record low of $5,800 in March, according to Cox Automotive. Used EV premiums were just $1,012, near an all-time low, further incentivizing buyers to consider electric alternatives. Cox Automotive also linked the surge in EV shopping to rising fuel costs, with higher search traffic on platforms like Autotrader. The data suggests that economic pressures are driving consumers toward EVs, even as used prices climb. For now, the market appears to favor fuel-efficient vehicles, with analysts suggesting that used EVs remain a smart purchase amid volatile gas prices.