Used car prices dropped in April for the first time since last year as soaring gas prices pushed more Americans to rethink what they drive. At the same time, interest in electric vehicles has started rising again as fuel costs continue climbing across the country.
Used Car Prices Decline After Months of Increases
According to Cox Automotive’s Manheim Used Vehicle Value Index, wholesale used car prices fell by 1.6% in April compared with March. It marked the first monthly drop since October, although prices still remained 1.8% higher than a year earlier.
The decline comes after several months of strong demand during the spring selling season, when many buyers used tax refunds to purchase or finance vehicles.
Cox Automotive said affordability remains a major issue for consumers, especially as household budgets face pressure from rising fuel and living costs.
Rising Gas Prices Are Changing Buyer Habits
Gas prices have surged sharply in recent months amid instability in the Middle East. According to AAA, the national average price for gasoline reached $4.30 per gallon at the end of April and has continued climbing, hitting around $4.56 per gallon this week.
Cox Automotive chief economist Jeremy Robb said higher fuel costs are absorbing much of the extra money consumers may have had available for other spending.
As a result, many buyers are now turning toward older, cheaper vehicles or considering electric cars to avoid high fuel bills.
Interest in Electric Vehicles Starts Rising Again
The report found growing demand for electric vehicles at wholesale auctions despite weaker EV sales earlier in the year. Manheim’s electric vehicle index increased 7.2% year over year and rose 1.4% compared with March.
Industry analysts said rising gas prices are helping push more buyers back toward EVs after demand slowed following the end of some federal incentives last year.
Even so, used electric vehicles remain far more expensive than the average used car. Cox data showed the average used EV listing price is still around $9,200 higher than the wider used car market.
Buyers Continue Searching for Affordable Options
Despite the small drop in wholesale prices, affordability remains one of the biggest concerns in the car market. The average listed price for a used vehicle reached around $25,390 earlier this year, slightly higher than previous months.
Analysts expect used vehicle prices to continue rising gradually throughout 2026, although changing fuel costs and economic uncertainty could continue affecting buyer behaviour in the months ahead.
