Prices for used electric vehicles and hybrids have been rising sharply alongside gas prices since the Iran war began in late February.
The trend isn’t driven by gas prices alone. It also reflects an influx of money from tax refund season, said Kevin Roberts, director of economic and market intelligence at CarGurus.
Roberts analyzed new and used vehicle data from Feb. 28 — when the war began — through the end of April. “For most people, that’s when gas prices started to go up, and that’s also when interest in more fuel‑efficient vehicles really began to pick up,” he said.
As Gas Prices Increased, Prices for Used EVs Did Too
Roberts cautioned against oversimplifying the correlation, noting that more time is needed to draw firm conclusions. Still, rising list prices — paired with an increase in users searching the site — warrant a closer look. “There was an acceleration in EV and hybrid interest in March and April compared with January and February, which aligns with gas prices starting to rise,” Roberts said.
These EVs Saw the Largest Price Jump since End of February
Roberts pointed to several vehicles that experienced the steepest price increases, including the Tesla Model X, Rivian R1S, Porsche Taycan, Ford Mustang Mach‑E and Kia EV9. The Model X saw its average price jump by more than $6,000 from Feb. 28 through April 30.
Here’s a closer look at five vehicles experiencing the biggest price shifts:
Tesla Model X
“For the Model X, prices moved higher on two fronts,” Roberts said. “An influx of 2022 models at elevated price points and lower availability of 2021 and older listings pushed average prices up across those model years.”
Rivian R1S
“The R1S operates in tight supply to begin with,” Roberts said. “A drop in 2023 model year availability, combined with higher asking prices on 2024 and 2025 models, pushed the overall average list price higher.”
Ford Mustang Mach-E
“The Mach-E saw inventory tighten across 2024 and older model years, putting upward pressure on prices,” Roberts said. “A wave of 2025 models entering the used market at higher price points also lifted the overall average.”
Porsche Taycan
“Taycan listings fell sharply, down around 20%,” Roberts said. “2023 and newer models saw the steepest declines in availability. Less supply at those price points pushed averages up.”
Kia EV9
“The EV9 has naturally limited used supply as a newer vehicle,” said Roberts. “A drop in 2024 model year listings helped push the overall average list price higher.”
Is Now the Time to Make the Switch to an EV?
Though these changes are significant — and used traditional internal combustion engine vehicles also saw price shifts — Roberts believes used EVs are a good buy at the moment. “Used EVs represent some of the best bargains out there. They tend to be younger than comparable internal combustion engine and hybrid vehicles, and tend to have less miles on them.”
For those considering making the jump to an EV, now may be the time. The price difference between new EVs and new internal combustion engines (ICE) vehicles has narrowed to an all‑time low.
On average, new EV premiums — the extra amount paid compared with an ICE vehicle — dropped to a record low of $5,800 in March, according to Cox Automotive. Premiums for used EVs during the same period were $1,012, also near a record low.
Cox Automotive also attributes higher EV shopping rates to rising fuel prices. Shopping traffic on Autotrader and Kelley Blue Book — two websites owned by Cox — was elevated compared with a fourth‑quarter baseline. EV shopping activity was up about 25%, while hybrid shopping increased roughly 20%.
“With sharply higher fuel prices, our main shopping sites are seeing notably higher interest in hybrids and EVs,” said Sean Tucker, managing editor of Autotrader and Kelley Blue Book. “But the high prices are proving to be tailwinds to sales trends we’ve been expecting: stronger hybrid sales, growth in used EV sales, and even improving new EV sales.”
Though making the switch may be tempting, Erin Keating, an executive analyst with Cox Automotive, cautioned that fuel prices alone may not be enough to sway all buyers. “Historically, it takes sustained fuel price pressure — measured in years, not weeks — before it meaningfully reshapes vehicle sales mix.”
Recent Spike in Prices May Reverse Tesla’s Slide
Tesla’s list prices and share of the EV market have dropped over the past five years, but prices have begun to tick back up recently. According to Roberts, Teslas had been overpriced, then overcorrected, and are now starting to level out. “From January through April of this year, Tesla saw a nearly $5,000 increase in list prices in the last four months.”
Is There a Good Deal to Find as New Vehicle Prices Climb Over $50K?
Affordable new vehicles remain a challenge, but Roberts offered a recommendation given today’s economic climate.
“We’re seeing the average list price of new cars get up over $50K again. And the new market doesn’t look like it’s getting any cheaper,” Roberts said. His recommendation is to look at the Kia Ioniq 5.
“This is one of the clearest bargains we’re seeing in the used EV market right now. Availability nearly quadrupled year-over-year, while average list prices fell roughly $6,100 — or about 18% — to around $27,600.”
The 2024 model year is where the value is really concentrated, according to Roberts. “Supply jumped nearly sixfold, and average prices dropped from around $38,200 to $26,700, a decline of over $11,500.”
Reporting by Carlie Procell and Ramon Padilla, USA TODAY.
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