Used EV Sales Surge In US As Iran War Drives Oil Spike— Americans Snap Up Sub-$25,000 Models

Demand for used EVs surged in the U.S. as gas prices continue to rise amid the U.S.-Israel and Iran war, with sales seeing double-digit increases on the used market.

A Surge In Demand

Used EV sales jumped nearly 28% in March this year, CNBC reported, citing data from Cox Automotive on Sunday. One of the reasons outlined is the end of leases for EVs, which has led to an influx on dealership lots, according to analyst Joseph Yoon from market research firm Edmunds, cited in the report.

However, according to Stephanie Valdez Streaty, who is the director of industry insights at Cox Automotive, over 44% of used EV sales in March comprised models priced below $25,000, the report said. The report also mentioned that used EV prices were down 6.1% YoY to $34,653 in March, over $1,102 higher than the average gasoline car price of $33,641.

The national average price for a gallon of gasoline in the U.S. surged to $4.446 on Sunday, according to data by the American Automobile Association (AAA).

At the time of writing this article, the West Texas Intermediate (WTI) crude was trading at $102.7/barrel. On the other hand, Brent crude commanded a price of $109/barrel. The United States Oil Fund (NYSE:USO), which tracks the WTI crude, surged to $144.55 at Market close on Friday.

Tesla Vehicles Holding Value

Tesla Inc. (NASDAQ:TSLA) vehicles seem to be holding on to their values, depreciating less compared to their legacy automaker EV counterparts. Tesla’s vehicles were also among the fastest-selling EVs in the U.S. used market.

Tesla EVs also outsold rivals as the Model Y and Model 3 sold over 101,000 units during the first quarter of 2026. The figure exceeded the combined sales of 99,099 EVs sold by automakers like General Motors Co. (NYSE:GM), Ford Motor Co. (NYSE:F), Toyota Motor Corp (NYSE:TM) and more.

Manufacturers Risk Trump’s Ire

Meanwhile, companies like GM and Ford, which reported a windfall in the form of tariff refunds, could be subject to backlash by the President Donald Trump administration. During its earnings call, GM reported a $500 million tariff refund, while Ford shared that it anticipates over $1.3 billion in refunds to be paid by the administration.

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