Used EV prices are rising for the first time. High gas prices and affordability are overriding record supply.

Used electric vehicle prices rose 7% year to date through mid-July, according to Recurrent, defying the normal pattern where cars lose value over time. “Used EVs are appreciating, which almost never happens,” the company said. Edmunds found a similar trend: average transaction prices for three-year-old EVs climbed 6% in the first half to $33,303. Twenty-one of the 25 highest-volume used EV models increased in price between January and June.

The appreciation is happening despite record supply. More than 500,000 leased EVs are expected to return to market as used cars this year, and the $7,500 federal tax credit ended in September 2025 after Republicans cut it from the Inflation Reduction Act ahead of schedule. Both factors should have pushed prices down. Instead, consumer demand overwhelmed them. Used EV sales were up 20% in June year-on-year, while new EV sales fell 28%.

The primary driver is gasoline prices. Average US gas prices hit $4.10 per gallon as of late July, up 31% from $3.12 a year ago, driven by the Iran conflict disrupting oil markets. “Fuel prices are supercharging the EV demand,” said Ivan Drury of Edmunds. The cheapest used EVs, those under $20,000, saw the largest price increases at 9.4%, as budget-conscious consumers seek alternatives to expensive fuel. Used EVs above $50,000 actually fell 3.3%. EVs outsold petrol and diesel in Germany for the first time in June, and the affordability argument is now working in both directions: new EVs are too expensive for many buyers, but used EVs at $20,000-$30,000 offer newer technology and lower mileage than a comparable gas car that is two years older.

“It always comes down to affordability in car sales. It doesn’t matter if it runs on gas or electric,” said Rob Dell of Bob Ruth Ford. China’s domestic car market collapsed 20% in the first half as consumers there also shifted away from expensive new vehicles. The US used EV market is smaller, with just 2.4% market share, but the price trend matters because it reverses the narrative that EVs depreciate faster than conventional cars. For current owners, it means higher resale values. For prospective buyers, it means the window for cheap used EVs may already be closing.