Surging gas prices have more than half of car buyers eyeing EVs and hybrids
April 25, 2026
Pras Subramanian · Senior Reporter
3 min read
Americans looking for a new ride are taking a closer look at electric and hybrid vehicles as gas prices surge.
A Cars.com in-market shopper survey found that more than half of car shoppers — 52% — said rising gas prices have led them to consider a full EV or plug-in hybrid vehicle (PHEV). Breaking it down further, 33% said they are more likely to consider a PHEV, while 19% are more inclined to look at a fully battery-electric vehicle.
“With the ongoing conflict involving Iran causing elevated gas prices, we have seen a surge in interest for electric vehicles,” Lawrence Hodge, Cars.com news editor, said in a statement to Yahoo Finance. “This sudden interest in EVs is not surprising as we often see this pattern play out when gas prices rise.”
Last year, the Trump administration ended the $7,500 EV tax credit, which subsequently crushed EV sales.
But now it seems high gas prices — brought on by the US war with Iran — has consumers giving EVs another look. According to AAA, the average price of gas in the US as of Friday stood at $4.06, up from $3.17 a year ago.
Read more: How oil price shocks ripple through your wallet, from gas to groceries
The survey, conducted in early April, found that nearly half (49%) of respondents said rising gas prices are impacting their purchase timeline. New search data from Cars.com shows just how sharply this shift happened.
Consumer interest in EVs surged 25% from March, with searches on Cars.com for new EVs up 23.8% and used EV searches rising 25.5%. Hybrids also saw a healthy bump, with searches for new hybrids climbing 12.5% and views of hybrid and plug-in hybrid listings rising 7% overall. Meanwhile, searches for gas- and diesel-powered vehicles dropped 9%.
Read more: Buying an electric car? What to know about EV insurance costs.
The search data itself tells an interesting story. Of the top five EVs consumers searched for from mid-February through late March, four carried average MSRPs above $50,000: the Cadillac Escalade IQ GM (GM), the Chevrolet (GM) Silverado EV, Ford’s (F) Mustang Mach-E, and the Volkswagen (VWAGY) ID. Buzz.
Those elevated prices appear to be keeping buyers on the sidelines, however, with the Escalade IQ and ID. Buzz averaging over 200 days on dealer lots before selling.
Cars.com provided a list of the cheapest new EVs for more price-conscious buyers, led by the Chevrolet Bolt ($28,995), Nissan Leaf ($31,535), Fiat 500e ($32,495), Hyundai Kona Electric ($34,470), and Toyota bZ ($36,350).
The used EV market tells a different story, and that’s where buyers can find a deal on better-equipped EVs.
Tesla (TSLA) dominates used EV searches — the Model 3, Model S, Model X, and Model Y all ranked in the top five — and those vehicles are moving off the lot faster, averaging just 43.2 days.
“Some buyers may look at used EVs, as their much lower price — averaging just under $31,000 — and depreciation make them great used buys,” Hodge said.
Read more: 6 steps to find cheap car insurance in 2026
But Hodge was careful not to overreact to the sudden interest in EVs in the new market, because general pricing is just too high.
On average, brand new EVs cost around $58,000 before any incentives or state and local tax breaks. The average new vehicle, regardless of powertrain, is just slightly under $50,000.
“It’s important to note that this interest may not be permanent, nor does it look as if there will be some kind of EV sales boom,” Hodges said.
Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X and on Instagram.
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