by Americans are in no rush to buy electric cars, but are happy to rent them
Rising gas prices above $4 per gallon have forced Americans to reconsider their transportation habits. Although sales of new electric cars remain low, car rental companies are recording a significant increase in demand for EV rentals.
Hertz and Turo: record demand for electric vehicles
Hertz, which previously got rid of 30,000 electric vehicles due to high repair costs, reports an almost 25% increase in EV rental requests in March compared to February. The biggest surge is observed on the West Coast, where fuel prices are traditionally higher and drivers are more open to using electric vehicles.
For drivers covering long distances, especially rideshare operators, cheaper charging becomes very attractive. With access to cheap electricity, a full charge of an electric vehicle can cost only $10-20, whereas refueling a gasoline car can cost up to $60.
Peer-to-peer car rental platform Turo has also noticed a similar trend. The number of EV bookings in the last three weeks of March increased by 11% compared to the previous three-week period. On March 31, when the average US gas price exceeded $4 for the first time since 2022, EV reservations surged by 47% compared to the same date last year.
Reasons for rising fuel prices
The jump in fuel costs is linked to disruptions around the Strait of Hormuz — one of the world’s most critical energy transit routes. Due to concerns over oil supply, US gas prices have risen by more than a third since the end of February.
Current fuel prices in the US
According to AAA, a gallon of regular gas now costs an average of $4.09, while last year at this time drivers paid only $3.17. Diesel fuel prices have risen from $3.56 per gallon in April last year to $5.47 today. In California, the situation is even more severe: regular gas costs $5.85, and diesel costs $7.49 per gallon.
New EV sales in the US are still falling
Although demand for EV rentals is rising, new electric vehicle sales in the US fell by 25% in March compared to last year. The loss of the $7,500 federal tax credit last fall continues to negatively impact purchasing decisions. However, if gas prices remain high, EV sales are also expected to start growing.
Interestingly, in Europe, EV sales are already soaring due to rising fuel prices. In the first quarter, they rose by 33.5%, and in March accelerated to 51% amid the conflict in Iran and its impact on fuel costs.
When gas prices spike sharply, people don’t always immediately change their purchases — that takes more time. But they clearly change what they rent, as this is a less permanent financial commitment. This explains why EV rentals are growing faster than dealership sales. If the trend of high fuel prices persists, we can expect interest in purchasing electric vehicles to also begin growing, albeit with some delay.
