Higher fuel costs reshape US used-car market as EVs outperform

Higher fuel costs are reshaping the US used-car market, supporting electric and fuel-efficient vehicles while weighing on larger models as overall wholesale prices decline, according to Cox Automotive data released Wednesday.

The Manheim Used Vehicle Value Index fell to 205.9 in September, down 0.6% from a year earlier and 1.1% from August, after adjustments for vehicle mix, mileage and seasonality.

Electric vehicle values, however, rose 4.3% annually and 0.6% monthly. Non-electric vehicle values fell 1.6% from a year earlier and 1.7% from August. Compact cars also showed resilience, while pickups and SUVs weakened.

The divergence extends beyond electric vehicles. Cox's quarterly presentation showed that non-electric models achieving at least 40 miles per gallon gained 9.9% in wholesale value since January, while vehicles achieving less than 15 miles per gallon lost 15%.

That gap highlights how running costs are increasingly influencing vehicle valuations as buyers face pressure on household budgets.

Diesel vehicles accounted for a little more than 3% of wholesale inventory, but the supply rose to 39 days, 27% higher than a year earlier, as record diesel prices weighed on demand. EV supply declined as sustained high gasoline prices encouraged buyers toward more efficient vehicles.

Cox lowered its forecast for year-end wholesale price growth to 0.2%, from 2% projected in July, citing higher fuel costs, rising interest rates and broader economic pressures.

Growing supply adds to used-EV market

Used retail EV sales reached a record 124,000 vehicles in the third quarter, up 11.4% annually, although they still represented only 2.8% of used retail sales.

More electric vehicles are also returning to the market after leases expire. EVs are expected to account for about 16% of off-lease supply in the second half of 2026, compared to 10% in the first half.

Despite weaker valuations, Cox slightly raised its forecast for total used-vehicle sales this year to 38.5 million, suggesting demand remains resilient even as buyers become more sensitive to ownership costs.

The Manheim Used Vehicle Value Index fell to 205.9 in September, down 0.6% from a year earlier and 1.1% from August, after adjustments for vehicle mix, mileage and seasonality.

That gap highlights how running costs are increasingly influencing vehicle valuations as buyers face pressure on household budgets.

Cox lowered its forecast for year-end wholesale price growth to 0.2%, from 2% projected in July, citing higher fuel costs, rising interest rates and broader economic pressures.

Growing supply adds to used-EV market

Used retail EV sales reached a record 124,000 vehicles in the third quarter, up 11.4% annually, although they still represented only 2.8% of used retail sales.