Americans Have Started Buying Used Electric Cars: Gas is Too Expensive 0 10

One Dollar per Liter

Average gasoline prices in the U.S. this week surpassed $4 per gallon (3.8 liters) for the first time since 2022. Meanwhile, the average price of a new car is at a level close to a record high.

According to Cox Automotive, sales of used electric vehicles increased by 12% in the first quarter compared to the same period last year and by 17% compared to the previous quarter.

Analysts attribute this surge to an oversupply of hundreds of thousands of cheap used electric vehicles leased in the early 2020s, which are now returning to the market as lease terms expire.

According to credit bureau Experian, by the end of this year, electric vehicles will account for 15% of all cars returned at the end of leases, compared to 7.7% in the first quarter.

Prices Have Fallen

The oversupply has contributed to an 8.5% decrease in the average price of used electric vehicles from February 2025 to February 2026, narrowing the gap in average price between used electric vehicles and gasoline-powered cars from $4,923 to $1,334.

Sales of new electric vehicles fell by 28% year-on-year in the first quarter after the Trump administration canceled the $7,500 tax credit for consumers in 2025.

Duncan Aldred, president of General Motors' North American division, stated at an automotive forum in New York this week that the Detroit automotive giant has seen some surge in interest in electric vehicles among buyers over the past month.

Where to Charge?

However, it is still too early to predict whether high gasoline prices will lead to a significant increase in sales of new electric vehicles, analysts say. One reason cited is consumer concerns about the ability to make long trips in a large country with insufficient charging infrastructure.

Mike Murphy, co-founder of the activist group EVs For All America, added that many barriers to the adoption of electric vehicles are gradually being removed. The development of charging infrastructure in the U.S. accelerated last year despite a slowdown in electric vehicle sales.

"The dream of mass adoption of electric vehicles in America is not dead yet," he said.