Ankara:Higher fuel costs are reshaping the US used-car market, increasing the demand for electric and fuel-efficient vehicles while negatively impacting larger models. This shift is occurring as overall wholesale prices decline, with data from Cox Automotive highlighting these trends.

According to Anadolu Agency, The Manheim Used Vehicle Value Index reported a decline to 205.9 in September, a decrease of 0.6% from the previous year and 1.1% from August, after adjustments for vehicle mix, mileage, and seasonality. In contrast, the values of electric vehicles rose by 4.3% annually and 0.6% monthly, whereas non-electric vehicle values fell by 1.6% from the prior year and 1.7% from August.

The trend extends beyond electric vehicles, with non-electric models that achieve at least 40 miles per gallon gaining 9.9% in wholesale value since January, while vehicles with less than 15 miles per gallon experienced a 15% decline. This highlights how running costs are increasingly influencing vehicle valuations as buyers face financial pressure.

Diesel vehicles accounted for just over 3% of wholesale inventory, but their supply increased to 39 days, which is 27% higher than a year earlier, as record diesel prices dampened demand. Meanwhile, the supply of electric vehicles declined due to sustained high gasoline prices encouraging buyers to opt for more efficient vehicles.

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

The used electric vehicle market is expanding, with used retail EV sales reaching a record 124,000 vehicles in the third quarter, an 11.4% annual increase. Despite this growth, they still represent only 2.8% of used retail sales. More electric vehicles are returning to the market as leases expire, with EVs expected to make up about 16% of off-lease supply in the second half of 2026, compared to 10% in the first half.

Even with weaker valuations, Cox slightly increased its forecast for total used-vehicle sales this year to 38.5 million, indicating that demand remains strong, although buyers are becoming more sensitive to ownership costs.