Higher fuel costs are reshaping vehicle shopping patterns across the United States, with renewed attention falling on electric vehicles after months of slower demand. Interest has risen most sharply in the used EV market, where lower prices are aligning with pressure at the gas pump.
Industry data suggests the shift is being driven less by enthusiasm for electrification and more by affordability concerns. Hybrids are also gaining momentum as buyers look for lower fuel costs without changing driving habits.
Americans are paying noticeably more for gasoline than they were earlier this year, and that pressure is beginning to influence vehicle purchasing behavior. According to data cited by Newsweek from the American Automobile Association (AAA), the national average price for regular gas reached $4.55 per gallon on Friday, up by more than $1.50 compared with prices before the conflict involving Iran began.
Used EV Demand Rises as Fuel Prices Climb
According to Kevin Roberts, Director of Economic and Market Intelligence at CarGurus, average nationwide gas prices climbed from below $3 per gallon at the beginning of March to above $4.50 per gallon by mid-May. Over the same period, views of new EV listings on CarGurus increased by 62 percent, while used EV listing views rose by 49 percent.
Roberts told Newsweek that growing interest is beginning to convert into purchases, particularly in the used market. CarGurus reported that used EV sales increased 17 percent year over year in April, with growth accelerating through March and April. Used EV prices also increased by nearly 9 percent since February as buyers shifted toward more affordable models.
Cars.com reported similar trends. According to the company, used EV searches in April were up 61 percent compared with April 2024 and had risen 22.5 percent since the start of the year. Used EV inventory also moved more quickly, with average days on lot declining from 50 to 42 days since January.
Analysts pointed to falling used EV prices as another factor. Roberts said the average price of a used Chevy Equinox EV was down nearly 20 percent year over year, while used Hyundai Ioniq 5 prices declined about 17 percent. A used Tesla Model 3 averaged roughly $25,700.
Affordability Remains the Dividing Line for New Vehicle Buyers
While used EV demand has strengthened, the same pattern has not fully carried over into new vehicle sales. According to Roberts, the expiration of the federal $7,500 EV tax credit in September 2025 reduced affordability and contributed to weaker demand for new electric models. He said automakers responded by shifting greater attention toward hybrid vehicles while attempting to lower EV costs.
Edmunds data cited by Newsweek showed EV market share rose to 11.5 percent in September 2025 before falling to 5.0 percent by November after buyers rushed to purchase before incentives ended.
Joseph Yoon, consumer insights analyst at Edmunds, said the average new EV still costs about $11,000 more than a comparable non-electric vehicle. He added that fuel prices alone are unlikely to overcome concerns around purchase cost, charging access, and consumer readiness.
Cox Automotive found broader interest in fuel-efficient vehicles beyond EVs. In a survey conducted among 1,000 in-market shoppers in May, 76 percent said fuel costs were influencing vehicle choice, while 74 percent were considering more fuel-efficient gasoline vehicles, 56 percent hybrids or plug-in hybrids, and 45 percent battery electric vehicles. Roberts said hybrids have emerged as the strongest performer during the current period of elevated fuel prices.
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