Surging gas prices have more than half of car buyers eyeing EVs and hybrids


Americans looking for a new ride are taking a closer look at electric and hybrid vehicles as gas prices surge.

A Cars.com in-market shopper survey found that more than half of car shoppers — 52% — said rising gas prices have led them to consider a full EV or plug-in hybrid vehicle (PHEV). Breaking it down further, 33% said they are more likely to consider a PHEV, while 19% are more inclined to look at a fully battery-electric vehicle.

“With the ongoing conflict involving Iran causing elevated gas prices, we have seen a surge in interest for electric vehicles,” Lawrence Hodge, Cars.com news editor, said in a statement to Yahoo Finance. “This sudden interest in EVs is not surprising as we often see this pattern play out when gas prices rise.”

Last year, the Trump administration ended the $7,500 EV tax credit, which subsequently crushed EV sales.

But now it seems high gas prices — brought on by the US war with Iran — has consumers giving EVs another look. According to AAA, the average price of gas in the US as of Friday stood at $4.06, up from $3.17 a year ago.

Read more: How oil price shocks ripple through your wallet, from gas to groceries

Tesla vehicles are seen at a Tesla facility Wednesday, April 15, 2026, in Portland, Ore. (AP Photo/Jenny Kane)
Tesla vehicles are seen at a Tesla facility Wednesday, April 15, 2026, in Portland, Ore. (AP Photo/Jenny Kane) · ASSOCIATED PRESS

The survey, conducted in early April, found that nearly half (49%) of respondents said rising gas prices are impacting their purchase timeline. New search data from Cars.com shows just how sharply this shift happened.

Consumer interest in EVs surged 25% from March, with searches on Cars.com for new EVs up 23.8% and used EV searches rising 25.5%. Hybrids also saw a healthy bump, with searches for new hybrids climbing 12.5% and views of hybrid and plug-in hybrid listings rising 7% overall. Meanwhile, searches for gas- and diesel-powered vehicles dropped 9%.

Read more: Buying an electric car? What to know about EV insurance costs.

The search data itself tells an interesting story. Of the top five EVs consumers searched for from mid-February through late March, four carried average MSRPs above $50,000: the Cadillac Escalade IQ GM (GM), the Chevrolet (GM) Silverado EV, Ford’s (F) Mustang Mach-E, and the Volkswagen (VWAGY) ID. Buzz.

Those elevated prices appear to be keeping buyers on the sidelines, however, with the Escalade IQ and ID. Buzz averaging over 200 days on dealer lots before selling.

Cars.com provided a list of the cheapest new EVs for more price-conscious buyers, led by the Chevrolet Bolt ($28,995), Nissan Leaf ($31,535), Fiat 500e ($32,495), Hyundai Kona Electric ($34,470), and Toyota bZ ($36,350).

Photo by: NDZ/STAR MAX/IPx 2026 4/1/26 A 2027 Chevrolet Bolt RS on display at the New York International Auto Show at the Javits Convention Center in New York on April 1, 2026.
A 2027 Chevrolet Bolt RS on display at the New York International Auto Show at the Javits Convention Center on April 1, 2026. (NDZ/STAR MAX/IPx · NDZ/STAR MAX/IPx

The used EV market tells a different story, and that’s where buyers can find a deal on better-equipped EVs.

Tesla (TSLA) dominates used EV searches — the Model 3, Model S, Model X, and Model Y all ranked in the top five — and those vehicles are moving off the lot faster, averaging just 43.2 days.

“Some buyers may look at used EVs, as their much lower price — averaging just under $31,000 — and depreciation make them great used buys,” Hodge said.

Read more: 6 steps to find cheap car insurance in 2026

Photo by: NDZ/STAR MAX/IPx 2026 4/1/26 The Kia EV3 on display at the New York International Auto Show at the Javits Convention Center in New York on April 1, 2026.
The Kia EV3 on display at the New York International Auto Show at the Javits Convention Center on April 1, 2026. (NDZ/STAR MAX/IPx) · NDZ/STAR MAX/IPx

But Hodge was careful not to overreact to the sudden interest in EVs in the new market, because general pricing is just too high.

On average, brand new EVs cost around $58,000 before any incentives or state and local tax breaks. The average new vehicle, regardless of powertrain, is just slightly under $50,000.

“It’s important to note that this interest may not be permanent, nor does it look as if there will be some kind of EV sales boom,” Hodges said.

Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X and on Instagram.

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance





Source link

  • Related Posts

    Trump bought at least $51 million in bonds in March, disclosure shows

    By Laura Matthews NEW YORK, April 25 (Reuters) – U.S. President Donald Trump bought at least $51 million ‌in bonds in March, according to financial ‌disclosures released on Saturday, with…

    President Trump cancels Witkoff, Kushner trip to Pakistan for Iran talks

    IE 11 is not supported. For an optimal experience visit our site on another browser. Now Playing President Trump cancels Witkoff, Kushner trip to Pakistan for Iran talks 03:04 UP…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Trump bought at least $51 million in bonds in March, disclosure shows

    Trump bought at least $51 million in bonds in March, disclosure shows

    Sharge’s fast Qi2.2 MagSafe battery is down to $70 with a free USB-C cable

    Sharge’s fast Qi2.2 MagSafe battery is down to $70 with a free USB-C cable

    The Curator: Wayfair’s Way Day Sale is back – get up to 80% off! – National

    The Curator: Wayfair’s Way Day Sale is back – get up to 80% off! – National

    President Trump cancels Witkoff, Kushner trip to Pakistan for Iran talks

    President Trump cancels Witkoff, Kushner trip to Pakistan for Iran talks

    After losing its creative director, it looks like Assassin’s Creed Hexe has lost its game director now too

    After losing its creative director, it looks like Assassin’s Creed Hexe has lost its game director now too

    The Best Trench Coats, Capris, and Kitten Heels for Spring

    The Best Trench Coats, Capris, and Kitten Heels for Spring