EV Buyers Keep Trading In Gas Cars Despite Higher Prices

Data from Edmunds shows a steady increase in electric vehicle (EV) adoption, with 72.1% of EV buyers trading in gasoline-powered vehicles in April—up from 67.1% in January. The shift persists even after the federal $7,500 EV tax credit expired, suggesting sustained market momentum. Meanwhile, 35.4% of buyers in April traded in an older EV for a new one, up from 26.2% in January, indicating a growing cycle of EV replacement. Used EV prices have risen faster than non-EVs, with three-year-old models now 11% higher than at the start of the year, according to Cox Automotive. Jeremy Robb, Chief Economist at Cox Automotive, noted that elevated gas prices—triggered by geopolitical tensions like the U.S.-Israel strike on Iran in late February—are pushing consumers toward fuel-efficient vehicles. The trend is expected to intensify as more EV leases mature this summer. Gas-guzzling SUVs saw minimal trade-in growth (0.3%), while compact gasoline cars rose 7.6%, the second-highest increase behind EVs. This suggests buyers prioritize lower running costs over full electrification. However, rising material and maintenance costs may further accelerate the shift to EVs if gas prices remain volatile. Ivan Drury, Senior Director of Insights at Edmunds, linked the trend to oil price spikes following the February U.S.-Israel attack on Iran, which disrupted global energy markets. The data implies a long-term shift, though economic and geopolitical factors will determine whether the transition to electric vehicles becomes irreversible.