The prices of used electric vehicles and hybrids, along with gas prices, have been rising rapidly since the Iran war began in late February.
This trend isn’t just driven by gas prices. It also reflects an inflow 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 February 28 – when the war began – to the end of April. “For most people, that’s when gas prices started going up and that’s when interest in more fuel-efficient vehicles really started to grow,” he said.
As gas prices rose, so did used EV prices
Roberts cautioned against oversimplifying the correlation, noting that more time is needed to draw solid conclusions. Still, rising listing prices – coupled with an increase in users searching on the site – warrant a closer look. “March and April saw an uptick in EV and hybrid interest compared to January and February, which aligns with rising gas prices,” Roberts said.
The biggest jump in the price of these EVs was seen since the end of February
Roberts pointed to several vehicles that have seen the biggest price increases, including the Tesla Model From February 28 to April 30, the average price of a Model
Here’s a closer look at the five vehicles whose prices have changed the most:
tesla model x
“For the Model X, prices increased on two fronts,” Roberts said. “The influx of 2022 models at higher price points and less availability of 2021 and older listings pushed up the average prices in those model years.”
Rivian R1S
“R1s are in short supply to begin with,” Roberts said. “The decline in availability of the 2023 model year, combined with higher asking prices on 2024 and 2025 models, pushed the overall average list price higher.”
Ford Mustang Mach-E
“The Mach-E has seen a shortage of inventory for the 2024 and older model years, putting upward pressure on prices,” Roberts said. “The wave of 2025 models entering the used market at a higher price point also pushed up the overall average.”
porsche taycan
“Taycan listings declined sharply, down about 20%,” Roberts said. “2023 and newer models saw the biggest declines in availability. Low supply at those price points pushed the average up.”
Kia EV9
“As a new vehicle, the used supply of the EV9 is naturally limited,” Roberts said. “The decline in 2024 model year listings helped lift the overall average list price.”
Is now the time to switch to EVs?
Although these changes are significant – and prices for used conventional internal combustion engine vehicles have also seen changes – Roberts believes used EVs are a good buy right now. “Used EVs represent some of the best bargains out there. They tend to have shorter lifespans than comparable internal combustion engine and hybrid vehicles, and have lower miles on them.”
For those considering making the jump to an EV, now is the time. The price gap between new EVs and new internal combustion engine (ICE) vehicles has fallen to an all-time low.
On average, the new EV premium – the additional amount paid compared to an ICE vehicle – fell to a record low of $5,800 in March, according to Cox Automotive. The premium for a used EV during the same period was $1,012, near a record low.
Cox also attributes higher EV purchase rates to rising automotive fuel prices. Shopping traffic on AutoTrader and Kelley Blue Book – two websites owned by Cox – was up compared to the fourth quarter’s baseline. EV purchasing activity increased nearly 25%, while hybrid purchases increased nearly 20%.
“With fuel prices rising rapidly, we are seeing significantly more interest in hybrids and EVs on our main shopping sites,” said Sean Tucker, managing editor of AutoTrader and Kelley Blue Book. “But the higher prices are proving counterproductive to the sales trends we were expecting: strong hybrid sales, growth in used EV sales, and even an improvement in new EV sales.”
While it may be tempting to switch, Erin Keating, an executive analyst at Cox Automotive, cautioned that fuel prices alone may not be enough to sway all buyers. “Historically, it takes sustained upward pressure on fuel prices before meaningfully reshaping the vehicle sales mix – measured in years, not weeks.”
Recent price surge could reverse Tesla’s decline
Tesla’s list prices and EV market share have declined over the past five years, but recently prices have started rising again. According to Roberts, Tesla was overpriced, then overpriced, and has now started to level off. “The past four months, from January to April this year, saw Tesla list prices increase by nearly $5,000.”
Is there a good deal to be found when new vehicle prices rise over $50K?
Affordable new vehicles remain a challenge, but Roberts made a recommendation given today’s economic climate.
“We’re seeing the average list price of new cars rise over $50K again. And the new market doesn’t look like it’s getting cheaper,” Roberts said. Their 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 has nearly quadrupled year-to-date, while average list prices have dropped nearly $6,100 – or nearly 18% – to nearly $27,600.”
According to Roberts, the 2024 model year is where the value is really concentrated. “Supply increased nearly sixfold, and average prices dropped from approximately $38,200 to $26,700, a drop of more than $11,500.”
Reporting by Carly Proesel and Ramon Padilla, USA TODAY.