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Automotive Market · Consumer Savings · Gas Prices · Used EVs
Used electric vehicle (EV) sales surged 21.2% in January, driven by rising gas prices and new car costs, as drivers increasingly consider used EVs, priced around $28,000-$29,000, for significant annual fuel and maintenance savings, according to Cox Automotive, Recharged.com, and the U.S. Department of Energy.
The average price of a used EV is now slightly less than a used gas-powered car, which averages over $29,099, as reported by Cars.com. This increase in used EV supply stems from leases popular in the early 2020s, when federal tax credits were available, now returning to dealerships.
Drivers save an estimated $2,200 annually on gas with an EV, and $1,500 with a hybrid, according to the U.S. Department of Energy. Consumer Reports states EV owners save approximately $8,811 on ownership and maintenance over 200,000 miles compared to traditional cars.
While EVs historically depreciated faster (58-60% over five years versus 40s% for gas cars), this gap is narrowing. Stephanie Valdez Streaty of Cox Automotive indicates that a material shift in buying behavior requires consumers to believe gas prices will remain elevated for years, not just months, suggesting hybrids might be an easier transition for many drivers.
