Electric vehicles are gaining traction: more and more drivers are choosing green cars
Recent data from Edmunds indicates a significant increase in the popularity of electric vehicles among new car buyers. While in January of this year 67.1% of new EV buyers traded in a gasoline car, by April this figure had risen to 72.1%. Moreover, this is not just a temporary phenomenon: data on repeat EV purchases also shows positive dynamics.
In January 2026, 26.2% of buyers traded in an old EV for a new one, and by April this figure had increased to 35.4%. It is worth noting that this growth is occurring despite the cancellation of the $7,500 federal tax credit for electric vehicles and some state-level incentives. Can this be considered a sustainable trend?
Experts urge caution
Ivan Drury, senior director of analytics at Edmunds, cautioned CNBC against jumping to conclusions. He suggests that the current surge may be linked to events in the Middle East and the rapid increase in fuel prices.
Oil and gasoline prices began to rise after the US and Israel attacked Iran on February 28. Another three months or so of high gas prices and elevated EV trade-in levels will give us a better sense of whether customers feel enough financial pain at the pump to consider switching to electric power, Drury notes.
Car prices are rising, especially for EVs
The general increase in car prices, both new and used, is an obvious fact. Today, buying a car is significantly more expensive than six months ago or, even more so, in 2020. According to Cox Automotive, their Manheim Used Vehicle Value Index is roughly 4% higher than in the same period last year. At the same time, electric vehicles are leading the price increase, outpacing conventional gasoline cars.
Jeremy Robb, senior economist at Cox Automotive, emphasizes that prices for three-year-old electric vehicles have outpaced non-EVs for six consecutive weeks and are 11% higher than at the beginning of the year. He adds:
The longer gas prices stay high, the more we expect consumers will turn to fuel-efficient vehicles. As the number of expiring EV leases grows through the summer, it will be critical to monitor EV pricing trends, especially if the conflict in the Middle East remains unresolved.
It appears buyers are willing to pay more upfront if it means lower operating costs, which electric vehicles have offered for quite some time.
Gasoline SUVs are losing ground
Unsurprisingly, among all categories analyzed by Cox Automotive, used gasoline SUVs and crossovers have only increased in price by an average of 0.3% compared to last year. Given their high fuel consumption and, consequently, significant refueling costs, this trend is entirely expected.
It is also predictable that compact cars, a relatively economical segment among vehicles with internal combustion engines, showed the second-largest price increase at 7.6%. As Ivan Drury might note, the data points in an interesting direction, but it is still too early to call this a structural shift rather than a reaction to gas prices.
Given the current situation, the electric vehicle market is showing confident growth, underpinned by economic factors such as high fuel prices. However, as analysts warn, observing the market over the next few months is necessary to confirm the long-term trend, especially in the context of geopolitical instability. For now, it can be stated that consumers are increasingly considering EVs as a pragmatic alternative capable of reducing fuel costs, even despite the higher initial price.