Full Breakdown
Used Car Prices Slip in April 2026 as Gas Prices Surge Amid Middle East Conflict
5/7/2026, 10:55:57 PM
April 2026 Price Decline
The Manheim Used Vehicle Value Index fell 1.6 % in April 2026, the first monthly decline since October 2025. Despite the drop, wholesale prices remain near 2023 highs. The dip followed a strong spring start, as many buyers used tax refunds to buy or finance used cars.
Rising Fuel Costs
Gasoline averaged $4.30 per gallon at the end of April, up $1.12 YoY, and rose to $4.56 by early May. The price is 47 % higher than at the end of February, a surge linked to the two-month Middle East conflict that has lifted global energy markets. The Iran war has tightened oil supplies, contributing to the sharp gasoline climb.
Market Numbers
The index’s 1.6 % MoM dip contrasts with a 1.8 % YoY gain. The average listed price of a used vehicle was $25,390 in March, $100 higher than February. The EV index climbed 7.2 % YoY and 1.4 % MoM, keeping EV listings about $9,200 above the market. Cox projects retail used-car prices to increase roughly 2 % annually in 2026.
Official Responses
Cox chief economist Jeremy Robb said affordability pressures are reshaping buyer behavior, spurring interest in older, lower-priced models and accelerating EV adoption. Robb warned that the surge is absorbing discretionary income and that no relief appears imminent. CarMax noted higher gasoline costs are prompting more shoppers to consider electric vehicles, even as recent federal incentives have ended. CarMax observed a noticeable uptick in EV inquiries after federal tax credits expired.
Verbatim Quotes
- “The conflict in the Middle East has now been ongoing for two months, and while energy prices backed off a bit in mid-April, they have reaccelerated to the upside: the price of gas just hit a high for the year and is up 47% since the end of February,” — Jeremy Robb, Chief Economist, Cox Automotive
- “Those higher prices are soaking up a lot of the extra money in consumers' pockets, and currently there's no end in sight.” — Jeremy Robb, Chief Economist, Cox Automotive
- “Affordability remains front and center, and that’s driving some increased demand for older vehicles... as well as changing the calculus for consumers shopping for EVs,” — Jeremy Robb, Chief Economist, Cox Automotive
- “As reported in March, used car retailers including CarMax have told Sherwood News that gas prices are driving more shoppers to look toward EVs.” — CarMax, used-car retailer
Outlook
Cox Automotive’s forecast of a 2 % annual rise in retail used-car prices suggests the market may absorb some pressure, but if gas prices stay elevated, growth could be offset by tighter consumer budgets. The Iran war remains a key variable, as further energy-market disruptions could amplify price volatility and shape purchasing decisions throughout 2026.
