American consumers are experiencing notable increases in gas prices at the pump, leading many to explore electric vehicles (EVs) more intensely. Gas prices increased from less than $3 per gallon to over $4.50 between early March and mid-May. This surge has driven a 62 percent increase in views of new EV listings on CarGurus, an online automotive marketplace, according to Director of Economic and Market Intelligence, Kevin Roberts. Similarly, views of used EVs jumped by 49 percent in the same period.
Roberts mentioned that this heightened interest is turning into sales, especially for used EVs. Data from April shows that used EV sales rose by 17 percent year-over-year, with a price increase of nearly 9 percent since February. This shift indicates a rising consumer preference for affordable vehicle options.
Cars.com, also a significant digital marketplace, reported a 61 percent rise in used EV searches in April compared to the previous year. Since January, such searches have increased by 22.5 percent. In addition, used EVs are selling faster, with the average time on the lot decreasing from 50 to 42 days.
The U.S.-Israel joint bombing of Iran in February led to disruptions in oil production and supply, particularly in the Middle East, causing a global spike in oil and gas prices. This geopolitical event contributed significantly to the upward trend in gas prices, reaching an average of $4.55 per gallon by Friday according to AAA. California drivers currently face the highest prices, with an average of $6.13 per gallon.
Kevin Roberts emphasized that rising gas prices have spotlighted the affordability of used EVs. Even after the expiration of EV tax credits, affordability has improved. For instance, the price of a used Chevy Equinox EV dropped nearly 20 percent year-over-year, and used Hyundai Ioniq 5 declined about 17 percent. A used Tesla Model 3 now averages around $25,700. These lower price points make them competitive with used gasoline vehicles.
Joseph Yoon from Edmunds highlighted that a considerable number of three-year EV leases are returning to the market, benefiting consumers due to depreciation rates. He noted that while early EV owners faced depreciation challenges when trading in, this has now made used EVs a compelling option.
Conversely, new EVs remain relatively costly. The expiration of the $7,500 federal tax credit in September 2025 has cooled demand. Kevin Roberts stated that automakers are focusing more on hybrids due to the high prices of new EVs. Data from Edmunds indicated that new EV market share climbed to 11.5 percent in September 2025 just before the tax credit expired, then dropped to 5.0 percent by November 2025. New EVs are on average $11,000 more expensive than similar non-electric vehicles, presenting a significant barrier for potential buyers.
Stephanie Valdez Streaty from Cox Automotive pointed out that the lack of incentives makes new EVs less affordable. However, there are more affordable EV models in development. For used EVs, improved affordability is evident, with prices nearing those of gasoline vehicles.
The current preference extends beyond EVs to include hybrid and fuel-efficient gas vehicles due to high fuel costs. A survey by Cox Automotive found 76 percent of 1,000 in-market shoppers reported fuel costs influencing their vehicle choice. Among them, 74 percent considered more fuel-efficient gas vehicles, 56 percent hybrids, and 45 percent battery EVs.
Yoon noted that gas price fluctuations alone aren’t enough to overcome the cost differences or build needed charging infrastructure. He stressed that vehicle adoption depends on affordability, charging access, and consumer confidence.
Despite growing interest, experts are cautious. Roberts commented that interest in EVs often corresponds with gas price changes, citing spikes in 2008 and 2022. Whether the current trend is sustainable hinges on the persistence of elevated prices.