High Oil Prices Prompt Americans to Reconsider Buying Electric Vehicles

According to the Financial Times, recent surges in gasoline prices have directly driven a significant increase in sales of used electric vehicles.

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In Q1 2026, U.S. used electric vehicle (EV) sales rose 17% quarter-on-quarter and 12% year-on-year. This growth stands in stark contrast to new EV sales, which declined 28% year-on-year this year. While the sharp drop in new EV sales is largely attributable to the Republican Party’s repeal of the federal EV tax credit, this cannot fully explain the surge in used EV sales. The Financial Times notes that rising oil prices are prompting more consumers to consider abandoning gasoline-powered vehicles altogether; however, the key reason is that used EVs have lower residual values and are cheaper than gasoline-powered vehicles.

Budget-conscious buyers might be willing to spend a bit more on a car that costs much less to fuel, but if the price difference is too large, why switch from a familiar gasoline-powered vehicle? Over the past year, the average price of used electric vehicles in the U.S. has dropped by 8.5%. Previously, the average price gap between used electric vehicles and used gasoline vehicles was as high as $4,923; now, this gap has narrowed to just $1,334. Meanwhile, Experian predicts that by the end of this year, the percentage of electric vehicles among those coming off lease will rise from 7.7% to 15%. This could mean significant losses for the automakers holding these leased vehicles, but for buyers willing to purchase electric vehicles, it means the potential to save a lot of money.

For example, the Financial Times cited the Chevrolet Blazer: the electric version has a manufacturer’s suggested retail price (MSRP) of $44,600, with a monthly lease payment of just $515; by contrast, the gasoline-powered version carries an MSRP of only $35,600, yet its monthly lease payment is $586. As the prices of new gasoline-powered vehicles continue to rise, more consumers are forced into the used-car market, making electric vehicles a more attractive and affordable option.

Now, as these lease-expired vehicles re-enter the used car market, their residual values are far lower than those of most gasoline-powered cars. Jessica Caldwell, head of insights at automotive research platform Edmunds, told the Financial Times that buyers currently interested in affordable, lease-returning EVs will find the selection far more appealing than during the 2022 oil price surge triggered by the Russia-Ukraine conflict. “During the last oil price spike in 2022, people were looking at models from around 2019, when electric vehicles were still relatively immature,” Caldwell said.