Used EV sales surge as gas prices top $4 per gallon, though another factor is also involved

[midian182]

In a nutshell: While new EV sales have crashed, the rising price of gas has caused a spike in purchases of used electric vehicles. The average gas price of $4 per gallon is a big incentive for drivers to switch to electric, but a slew of expiring EV leases is also a factor.

According to Cox Automotive, sales of new electric vehicles in the US were down 28% year on year in Q1 2026 after the Trump administration killed off the $7,500 consumer tax credit.

It's a different story for used EVs. Cox writes that this segment saw sales rise 12% compared to the same period a year ago, and were up 17% over the previous quarter.

Courtesy of the Financial Times

Gas prices in the US recently surpassed $4 per gallon, the most expensive it's been since Russia invaded Ukraine in 2022. Moreover, as is the case with pretty much everything right now, the average purchase price of a new car has increased, reaching a near-record level. That's obviously causing a lot of interest in EVs, but there is another element.

As reported by the Financial Times, hundreds of thousands of pre-owned EVs that were purchased using leasing schemes in the early 2020s are now entering the market as those leases expire.

According to credit reporting agency Experian, EVs will account for 15% of all off-lease vehicles at the end of this year, up from 7.7% in the first quarter.

That sudden rise in the number of pre-owned EVs has helped push their prices lower, dropping 8.5% between February 2025 and February 2026. Cox writes that the average price of a used EV is $34,821, almost the same as the gas-powered equivalent of $33,487.

Whether high gas prices will lead to a surge in new EV sales is still unclear, according to analysts. Consumers remain concerned about their ability to make long journeys in a large country with inadequate charging infrastructure.

It's not just the US where demand for used EVs has exploded. It's also happening in Australia as more drivers worry about the impact of the Iran war on fuel costs. But unlike the US, this has led car dealerships to increase the prices of used EVs.

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Used EV sales surge as gas prices top $4 per gallon, though another factor is also involved

 

[Megalomaniac]

I bought a 2024 Cadillac Lyriq and a 2026 Cadillac Vistiq. Both EV. Both get 300 miles range. My Vistiq is slightly more efficient than the Lyriq. Here in NYC our charging networks are terrible so unless you have a Tesla and intend on using the Tesla supercharger network, you'd better have a house with a driveway or garage and a Level 2 charger connected to your fusebox like I do.

Many people don't want to patronize that racist: Musk.

They're killing off naturally aspirated V6 engines for some stupid reason and forcing hybridization or turbocharging into everything. I hate turbocharging. #1 it's more complexity and parts but on top of that you're forced to use Premium fuel. I could drive a Cadillac XT5 or Cadillac XT6 with the GM v6 engine anywhere and everywhere on regular unleaded with no worries at all - even this joke of a president causing chaos and oil/gas prices to rise.

 

[yRaz]

It's like EVs were never about saving the environment and more about national security.....

 

[Theinsanegamer]

I bought a 2024 Cadillac Lyriq and a 2026 Cadillac Vistiq. Both EV. Both get 300 miles range. My Vistiq is slightly more efficient than the Lyriq. Here in NYC our charging networks are terrible so unless you have a Tesla and intend on using the Tesla supercharger network, you'd better have a house with a driveway or garage and a Level 2 charger connected to your fusebox like I do.

Many people don't want to patronize that racist: Musk.

They're killing off naturally aspirated V6 engines for some stupid reason and forcing hybridization or turbocharging into everything. I hate turbocharging. #1 it's more complexity and parts but on top of that you're forced to use Premium fuel. I could drive a Cadillac XT5 or Cadillac XT6 with the GM v6 engine anywhere and everywhere on regular unleaded with no worries at all - even this joke of a president causing chaos and oil/gas prices to rise.

Turbos dont need premium. Did you just ask an AI to summarize this for you?

 

[Freddie159]

I bought a 2024 Cadillac Lyriq and a 2026 Cadillac Vistiq. Both EV. Both get 300 miles range. My Vistiq is slightly more efficient than the Lyriq. Here in NYC our charging networks are terrible so unless you have a Tesla and intend on using the Tesla supercharger network, you'd better have a house with a driveway or garage and a Level 2 charger connected to your fusebox like I do.

Many people don't want to patronize that racist: Musk.

They're killing off naturally aspirated V6 engines for some stupid reason and forcing hybridization or turbocharging into everything. I hate turbocharging. #1 it's more complexity and parts but on top of that you're forced to use Premium fuel. I could drive a Cadillac XT5 or Cadillac XT6 with the GM v6 engine anywhere and everywhere on regular unleaded with no worries at all - even this joke of a president causing chaos and oil/gas prices to rise.

Talk to your friendly local mechanic as mine told me, for my Mercedes with a turbo in it 'regular gas is fine, the computer will figure out what's best for it, high test gas is for high speed runs or when you want to put your foot thru the floor for that sudden acceleration'.

 

[Hecate91]

Spending $30k-40k on a used EV isn't going to save money in the long term, and it'll be worthless when the batteries degrade.

 

[Theinsanegamer]

Talk to your friendly local mechanic as mine told me, for my Mercedes with a turbo in it 'regular gas is fine, the computer will figure out what's best for it, high test gas is for high speed runs or when you want to put your foot thru the floor for that sudden acceleration'.

There are turbos that do require premium and long term use of low octane will hurt them, but that's no different then N/A engines.

VW, Honda, Nissan, Ford, Mitsubishi, Kia, and Hyundai off the top of my head all make turbo motors tuned for 87 octane fuel.

Spending $30k-40k on a used EV isn't going to save money in the long term, and it'll be worthless when the batteries degrade.

Disagree. If your EV is charged at home then you are looking at $7-8k over 100k miles in fuel savings. Varies by location of course.

If you're comparing it against a equivalent price ICE car, eve can promote savings. Also no maintenance costs for engine oil or plugs or transmission fluid, ece.

 

[ScottSoapbox]

Can’t afford gas so you buy EV.
Can’t afford EV so you buy used.
Is America great again yet?

 

[Theinsanegamer]

Can’t afford gas so you buy EV.
Can’t afford EV so you buy used.
Is America great again yet?

buying used is normal and has been for a century or more.

Considering that in most of the world, you can barely afford a motorcycle, and cars are the property of the elite, yeah Im gonna say were doing pretty good.

 

[bviktor]

Spending $30k-40k on a used EV isn't going to save money in the long term, and it'll be worthless when the batteries degrade.

No, 10% loss in range won't make them "worthless".

 

[gamerk2]

Spending $30k-40k on a used EV isn't going to save money in the long term, and it'll be worthless when the batteries degrade.

Except we're starting to find the batteries last far longer then was expected.

 

[Hecate91]

Disagree. If your EV is charged at home then you are looking at $7-8k over 100k miles in fuel savings. Varies by location of course.

If you're comparing it against a equivalent price ICE car, eve can promote savings. Also no maintenance costs for engine oil or plugs or transmission fluid, ece.

A majority of people renting or in apartments won't have the option to charge at home.
Savings on fluid changes would take years to accumulate any appreciable savings on replacing an existing ICE car with monthly payments towards a used EV.
And then there are other issues such as anyone who experiences colder climates will have to charge more often, also thanks to AI, electricity costs are rising.
Not affording gas to spend $30k on an EV makes no sense at all.

cars are the property of the elite

We're headed there, average price of a new car is $50k, with the $20k new car segment essentially gone.

 

[Starfals]

Can’t afford gas so you buy EV.
Can’t afford EV so you buy used.
Is America great again yet?

Proper 1 world country lol. Cant stop winning!!

 

[Theinsanegamer]

No, 10% loss in range won't make them "worthless".

When you already have a short range to begin with, and then youre supposed to only use 80-10% during trips, then you have the range cut in winter, and top a 10% worn battery loss on top of all that, most consumers would consider that worthless.

thats why EVs dont hold their value at all.

A majority of people renting or in apartments won't have the option to charge at home.
Savings on fluid changes would take years to accumulate any appreciable savings on replacing an existing ICE car with monthly payments towards a used EV.
And then there are other issues such as anyone who experiences colder climates will have to charge more often, also thanks to AI, electricity costs are rising.

At $0.30 per kWh, an EV that gets 3 miles/kWh (which is easily doable with most smaller EV SUVs) is still driving for the equivalent of $3 a gallon gasoline VS a car that gets 30 MPG. And lets be honest here, most crossovers do not get 30 MPG in real world use. Gasoline today is averaging $4.16 a gallon right now.

So in that worst case scenario, you STILL save $3,333 in 100k of driving on fuel. Thats assuming youre using all public charging, no free charging. Now add another $1500 in savings for oil changes during that time, assuming you are stretching to 10k OCI.

Not affording gas to spend $30k on an EV makes no sense at all.

Stop twisting the argument. If you buy a $30k EV vs a $30k ICE, you are going to save substantially on fuel. If you cant afford fuel.....you shouldnt be buying a $30k car, period.

We're headed there, average price of a new car is $50k, with the $20k new car segment essentially gone.

Chevy trax starts at $21,700.
Nissan kicks at $22,500
VW jetta $24,000
toyota corolla $23,125
Honda civic $24,600.

Nobody is forcing you to buy $50,000 cars. If you are still making the same money you were making in 2011 thats on you.

https://www.ssa.gov/oact/cola/AWI.html

 

[Endymio]

Can’t afford gas so you buy EV.
Can’t afford EV so you buy used.
Is America great again yet?

It's particularly amusing that those crying the loudest about $4 gas today said nothing about Biden's $5 gas, eh?

 

[Kashim]

Can’t afford gas so you buy EV.
Can’t afford EV so you buy used.
Is America great again yet?

Not yet. Not until everyone rides around on those fat people scooters you see at Walmart. That's how I picture America's future; all you lardos riding around on scooters with titanium frames to support your 300+ lb bodies with a nacho cheese IV drip hooked directly to your veins.

 

[DukeJukem]

If this isn't the clearest form of lack of impulse control then I don't know what is lol. Gas prices go up to Brush Jr. Era pricing for 3 weeks and everyone's brilliant idea is to go blow thousands on a used EV with a weakened battery that'll cost thousands in a few years to replace?

EPIC DECISION MAKING. Enjoy sitting at a charger for an hour lol, that's if all the chargers aren't occupied when you pull up. God people are stupid.

 

[axiomatic13]

What is this weakened battery nonsense? That myth was debunked. People buy old EV batteries to run their homes when the power goes out. They do not degrade like was originally thought. I have a 2022 F-150 Lightning. It has the exact same range it had when I bought it. Where do y'all get this nonsense? Also, if your EV battery did not come with a heater for the winter, you made a bad choice on which EV you bought.

 

[Kashim]

It's particularly amusing that those crying the loudest about $4 gas today said nothing about Biden's $5 gas, eh?

Ah here we go again, the usual suspects crawling out from under their rocks to spread lies and misinformation. Biden's $5 gas? When was this? Was it when Biden attacked Ukraine? So the price of gas was his fault, right? When it's a Democrat in the White House and something happens elsewhere in the world they can't control it's still 100% their fault. When it's a Republican in the White House and something happens that they themselves caused and could have been easily avoided they get a free pass. Funny how that works, isn't it?

Trump constantly creates his own unnecessary problems and self-inflicted wounds that cause global problems and Republicans give him a free pass. Their go to reasoning is always to simply say things were MUCH worse during Biden/Obama/Clinton. What happened to the orange turd's promise about no more endless wars? If you think this war will be wrapped up in a few weeks or months and gas prices and everything else will simply go back to normal then you're sadly mistaken. This mess will linger for years if not decades because of one man's stupidity.

Let's be clear here; there was absolutely no reason for the US to attack Iran. An imminent threat from Iran is complete nonsense. The idea that Iran was about to acquire nuclear weapons is also complete nonsense. And now to use your favorite what-about-ism strategy and ask, what about North Korea and Russia? If Iran was such an imminent threat with their nuclear arsenal, then what about North Korea and Russia? They actually HAVE nuclear weapons, but because their dictators have cozied up to your own wanna-be dictator they get a free pass, right?

 

[maxxcool7421]

If you are buying an EV to never use gas again thats fine. but if your reason to buy EV was to get way from gas prices your just spending money on a car payment that could have been gas in a car you already had.

if you owe money on a car and trade it in for an EV your making a larger mistake because your payment will be more.. and offset any savings after having to have full coverage insurance and ... oh yeah EV's are higher to insure.

The only person who should be buying an EV is someone with with a car that is unreliable and needs 4000+$ a year in fixes ... or you are sitting on 30-80k and pay cash outright and will not miss that money at ll.

 

[Endymio]

Ah here we go again, the usual suspects crawling out from under their rocks to spread lies and misinformation. Biden's $5 gas? When was this? Was it when Biden attacked Ukraine?

Actually, it came in July 2022, several months after Biden went on live TV and green-lighted a "minor incursion" by Russia into Ukraine.

CNN, Jan 20, 2022: "Ukrainian President pushes back on Biden: ‘There are no minor incursions ... Officials in Kyiv were “stunned” by Biden’s comments. Ukraine’s foreign minister, Dmytro Kuleba, said that Biden’s comments served as an invitation to attack by Moscow...."

When it's a Democrat in the White House and something happens elsewhere in the world they can't control it's still 100% their fault.

Oops! You forgot Candidate Biden literally promised voters in 2020 that he would "end the fossil fuel industry" in the US. During his first year in office, he tried hard to fill that pledge, canceling leases, slow-rolling permits, roping off millions of acres from drilling, and enacting more than 50+ expensive new regulations on the industry.

The idea that Iran was about to acquire nuclear weapons is also complete nonsense

Funny, you said that about North Korea as well...until their first test. Multiple experts have stated that, with their 450+ kg of HEU, Iran's breakout sprint to nuclear weapons could be measured in days. Not months or even weeks, but days.

If Iran was such an imminent threat with their nuclear arsenal, then what about North Korea and Russia?

Was this a joke? Do you suggest Trump launch strategic strikes on them? Even ignoring Pyongyang's nukes, and that Russia has more nuclear warheads than the rest of the world combined, North Korea has some 40,000 long-range artillery units in range of Seoul. More than a decade ago, I read a RAND study noting that the DPRK could obliterate Seoul with artillery fire in just two hours time, causing several million casualties.

The time to strike these states is before they acquire nuclear weapons. Glad you agree how necessary it is.

 

[toooooot]

Spending $30k-40k on a used EV isn't going to save money in the long term, and it'll be worthless when the batteries degrade.

I checked Tesla prices some time ago, plenty of 25k models. I think, if the batteries were not holding well, they would be selling a lot cheaper. I believe most models I saw were Y's.

 

[toooooot]

What is this weakened battery nonsense? That myth was debunked. People buy old EV batteries to run their homes when the power goes out. They do not degrade like was originally thought. I have a 2022 F-150 Lightning. It has the exact same range it had when I bought it. Where do y'all get this nonsense? Also, if your EV battery did not come with a heater for the winter, you made a bad choice on which EV you bought.

Few people are doubting 4 yo batteries. Most rational people like myself question 8-10 yo batteries.
And I am certain that EVs at this age are not going to fail within months or even years.
The question I have is HOW many years I would get from such EV if I paid 20-26k for it.
That is what worries rational people. I am certain that nobody doubts batteries when they are under 8 years.
Besides, most if not all, batteries have 8yo warranty.
It is just an equation where you do not fear your EV will die suddenly, but rather how long you can get from it after the warranty expires.

 

[axiomatic13]

Few people are doubting 4 yo batteries. Most rational people like myself question 8-10 yo batteries.
And I am certain that EVs at this age are not going to fail within months or even years.
The question I have is HOW many years I would get from such EV if I paid 20-26k for it.
That is what worries rational people. I am certain that nobody doubts batteries when they are under 8 years.
Besides, most if not all, batteries have 8yo warranty.
It is just an equation where you do not fear your EV will die suddenly, but rather how long you can get from it after the warranty expires.

This is a reasonable take whereas the ones I was responding too are the ones parroting the O&G companies lies about EV's. I work in O&G, I know they are lies.

 

[Endymio]

This is a reasonable take whereas the ones I was responding too are the ones parroting the O&G lies...

It's not the "Oil and Gas industry", but the mainstream media. Remember this from a few years back?

Tesla Owner Decides to Blow Up His Car with Dynamite When Faced with $22,000 Battery Repair Bill

https://people.com/human-interest/tesla-owner-blows-up-his-car-when-faced-with-22000-repair-bill/