Gas Price Whiplash Is Bringing Americans Back to EV Market
Rising U.S. gas prices, now averaging $4.55 per gallon, have driven a 62% increase in new EV listings views and a 49% rise in used EV views since March, with used EV sales up 17% year-over-year. Used EVs are selling faster, with days on lot dropping 16.6% since January, as affordability and supply chain disruptions from the U.S.-Israel joint bombing of Iran push consumers toward electric vehicles.
Gas prices in the U.S. have surged to an average of $4.55 per gallon, up from below $3 at the start of the year, prompting a shift in consumer behavior toward electric vehicles (EVs). Since March, new EV listings on CarGurus saw a 62% increase in views, while used EV views rose 49%, according to Kevin Roberts, Director of Economic and Market Intelligence. Used EV sales are up 17% year-over-year, with prices rising nearly 9% since February as buyers seek more affordable options." "Used EVs are now selling faster than ever, with the average time on lot dropping from 50 to 42 days since January—a 16.6% decline—matching the speed of the 2022 fuel spike. Cars.com reported a 61% increase in used EV searches in April compared to last year, with overall searches up 22.5% since the start of the year. The price hikes are tied to disruptions in Middle Eastern oil production following the U.S.-Israel joint bombing of Iran in late February, which tightened supply and raised global gas costs." "Affordability is a key driver, with used EV prices falling significantly. The average price of a used Chevy Equinox EV dropped nearly 20% year-over-year, while a used Hyundai Ioniq 5 fell about 17%. A used Tesla Model 3 now averages around $25,700, making EVs competitive with comparable gas-powered vehicles. The expiration of federal $7,500 EV tax credits in September 2025 has also pushed buyers toward used models, where depreciation benefits consumers." "New EVs remain less accessible due to higher upfront costs, though automakers are prioritizing hybrids until tax incentives return. Edmunds analyst Joseph Yoon noted that depreciation on early EV leases is now working in buyers’ favor, offering better deals on used models. The trend reflects broader economic pressures, as Americans grapple with higher fuel expenses and seek long-term cost savings through electric alternatives.
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