Oil prices spike, no end in sight for Iran war
Is it time to buy a used EV? For some consumers, the answer may be yes
Oil prices shot past $120 a barrel today, pushing the average price of a gallon of gas in the U.S. to $4.30, up 27 cents in a week, according to The New York Times. With President Trump saying he’ll continue the blockade of Iranian ports until Tehran gives up its nuclear program, which it says it will never do, that creates a stand-off that could last months, not days.
The Outraged Consumer usually discourages running out and buying a new car when gas prices go up or down, as they tend to do. But lacking a clear exit from Iran and the likelihood of even higher gas prices, it may make sense for some consumers to take the plunge.
Most analysts think a lightly used electric vehicle is the best choice for those who can truly reap an economic benefit from it. This means spending lightly and thinking carefully about your charging situation.
For people who really need a car every day, a home charger is a near-necessity. It saves time and is considerably less expensive than using public chargers.
Thinking of buying an EV?
Here are the obvious positive factors in the buy/don’t buy decision:
Prices have reset dramatically. Used EV prices plunged far faster than gas cars from 2022 through early 2025 — down roughly 15–40% from their peaks — and have finally reached price parity with, or undercut, similar gas-powered vehicles. As of early 2026, 44% of used EV transactions are landing below $25,000, with 56% of all used EV inventory priced under $30,000, according to RechargedAutoBidMaster
Supply is improving. The used EV market will expand by more than one million lease returns over the next two years, and 55% of current inventory is from model year 2023 or newer, Recurrent Auto reports.
The price gap with gas cars has nearly closed. The premium for used EVs over comparable gasoline vehicles narrowed to just $1,376 in January — down from $2,591 the prior month — driven by a glut of lease returns and deep discounts on new electric models, per Carscoops.
Further declines are still possible. With affordable new electric models on the way in 2026, analysts expect further downward price pressure to send the average selling price of a used EV down 5–10% by late 2026. So buyers who can wait a few months may catch an even better deal, although the Iranian imbroglio makes it difficult to make any firm prediction.
The Tesla exception
Average used Tesla prices rose 4.3% to $31,329 after federal tax credits expired, while the average price for the rest of the used EV market fell 3.6% to $23,738. Teslas are bucking the trend partly due to discontinued variants tightening supply, and partly because their buyers tend to be less incentive-dependent, according to AutoBidMaster.
What to watch out for
The steeper depreciation that makes used EVs a bargain also creates some traps:
Battery health is the biggest wildcard. Cars that lived in hot climates and were fast-charged constantly can show outsized wear. A rock-bottom price with a vague battery history is a warning sign.
Charging network compatibility matters for older models, which may need adapters or have limited fast-charge access.
Technology is moving fast — new 2026 models offer 50–100 more miles of range and faster charging compared to EVs from 2021–2023, making older models feel less current than a comparable gas car of the same age would.
Bottom line for a commuter
If your daily drive is predictable and you can charge at home or work, a 2021–2023 mainstream EV (Chevy Bolt, Kia EV6, Hyundai Ioniq 5, Ford Mustang Mach-E) at current prices offers strong value.
The steepest depreciation has already happened, but prices haven’t rebounded yet — and probably won’t do so sharply in the near term. The sweet spot is the 3-to-5-year-old range, where someone else absorbed the brutal first-owner depreciation hit.
But what about China?
China is making some very attractive EVs at very affordable prices. They’re not officially available for import into the U.S. but there have been scattered press reports about Chinese EVs “leaking” in from Mexico. But the “cheap EVs from Mexico” buzz is mostly a myth and a potential trap for anyone who falls for it.
The premise of Chinese brands using Mexico as a backdoor into the U.S. made sense in theory. At one time, EVs manufactured in Mexico with sufficient North American content could enter the U.S. duty-free, potentially bypassing the 102.5% tariff on Chinese-made vehicles.
But Washington saw it coming. Under U.S. pressure, Mexico backed away from a plan to let BYD build a factory on its soil, and as of January 1, 2026, raised its own tariff rate to 50% for all companies that don’t have auto plants operating in Mexico.
Chinese EVs are booming in Mexico — but staying there
Nearly one in five cars sold in Mexico in 2025 was made in China, with around 244,000 vehicles from Chinese automakers like BYD, Changan, MG, and GWM — representing about 15% of total Mexican sales. Five years ago that share was less than 1%. But those cars are not legally making it across the border into the U.S. in any meaningful volume, according to Charged EVs.
The gray-market path is a financial disaster
A $10,000 used BYD could easily morph into a $30,000 expense once tariffs and modification costs are added. One owner spent $15,000 in modifications only for the car to fail EPA battery tests, a MOTORWATT report said. Without an official dealer network or warranty in the U.S., sourcing replacement parts becomes a logistical nightmare.
On top of that, Chinese-made EVs specifically face a 110% tariff rate — far higher than the general tariff stack on other Chinese goods. And a Biden-era Commerce Department rule still in effect bans the import and sale of passenger vehicles containing internet-connected technology from China — which is essentially every modern EV, according to The Detroit News.
What about Canada?
There’s a new wrinkle worth watching. Canada struck a deal with China in January allowing up to 49,000 Chinese EVs to enter Canada annually at just 6.1% tariff — down from 100% — in exchange for canola oil access. That has U.S. policymakers spooked. U.S. Trade Representative Jamieson Greer explicitly said Chinese imports routed through Canada “ain’t going to happen,” citing cybersecurity rules around connected vehicles that he said are not up for revision.
Bottom line for buyers
As of early 2026, there is no major Chinese EV brand selling mass-volume vehicles directly in the U.S., and the earliest realistic timeline for that changing is around 2030–2032. The “leaked through Mexico” framing circulating online is more anxiety (from Detroit) than reality.
For a commuter looking for a deal today, the used American-market EVs covered earlier — Bolts, EV6s, Ioniq 5s — are a far safer bet than chasing a gray-market BYD. Recharged
Doing nothing is also worth considering. A car is a long-term financial obligation. If you carefully calculate the true cost of snagging a new ride, it is almost certainly many thousands of dollars over several years.
Keeping your current car and driving it less and — ahem — more slowly is probably the best course for many consumers already burdened with debt.