Critical Shifts:
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Record Volume: Manheim saw record wholesale activity with nearly 37,000 units sold, fueled by an influx of off-lease vehicles.
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Strong Demand: Used EV sales exceeded 100,000 units in Q1, driven by firm pricing and consumers seeking more affordable alternatives to new EVs.
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Market Maturation: Growing supply is being successfully absorbed by the market as lenders adjust valuations, stabilizing the used EV ecosystem.
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Electric vehicles (EVs) showed notable strength at Manheim during the first quarter, outperforming long term expectations and a sign of healthy demand for used EVs, according to an April 7 report from Manheim.
EV pricing and activity remained firm through March, with values rising alongside the seasonal spring increase. Rising gas prices may have positively influenced demand last month, as dealers pursued potential opportunities with used EV, which are notably more affordable than new EVs.
EV availability at Manheim improved in Q1 as well, as more off-lease EVs are moved into the auction lanes. In fact, the wholesale volume of EVs at Manheim set a record in Q1, with nearly 37,000 units sold. Initial retail sales estimates for used EVs were strong as well. Cox Automotive’s analysis suggests more than 100,000 used EVs were sold in Q1, the second-best result behind only Q3 2025, when buyers were hurrying to secure soon-to-expire government-backed sales incentives.
The growing EV share reflects an increasing flow of off lease vehicles back into wholesale channels, as many lessees remain unlikely to purchase vehicles priced above market value at lease end. Lenders have been absorbing these valuation adjustments gradually, helping the wholesale market digest the increase in used EVs. As additional off lease EVs return in coming quarters, Manheim expects EV activity to continue rising, further solidifying their role within the wholesale ecosystem.
