High Gas Prices Prompt More Car Shoppers to Consider Green Vehicles
Gas prices rising to record high levels have stirred car shoppers’ interest in green vehicles. These include hybrid, plug-in hybrid and more so electric vehicles (EVs). Last year Edmund reported an increase in traffic of online car shoppers searching for green vehicles. Results of a recent iSeeCars study shows demand for hybrid and electric vehicle is growing faster in central and rural areas than it is in densely populated coastal cities.
The price increase for EVs rose in April and continues to outpace that of gas fuel vehicles. iSeeCars analyzed the prices of over 13.8 million 1-5 year old used cars sold between January and July of 2021 and 2022 and found that electric car prices saw an increase of 54.3 percent from the same month last year while gas-powered cars were up just 10.1 percent.
The used car with the greatest price increase is the Nissan LEAF, which has risen in price by 45 percent compared to last year. The Chevrolet Bolt hatchback ranks second. Four Tesla models make the list including the third-ranked Model S, the fourth-ranked Model X, the fifth-ranked Model 3, and the seventh-ranked Model Y. The Kia Niro EV ranks sixth with an average annual price increase of 15.7 percent. The remaining three models are luxury brands - the Audi e-tron, the Jaguar I-Pace, and the Porsche Taycan.
“Until recently, mainstream electric vehicles typically depreciated rapidly due to improvements in battery technology and a lack of demand in the secondary market,” said iSeeCars Executive Analyst Karl Brauer. “However, soaring gas prices, improvements in public charging infrastructure, and a lack of inventory for new EVs have led to soaring demand for used electric vehicles.”
As for hybrid vehicles, Bauer said while their prices have increased, they have trended more like conventional fuel vehicles. He noted, however, that hybrids “remain a practical choice for used car buyers who want a more fuel-efficient option.”
The point is, as more new EVs enter the market, used EVs will be more common in the used car market and even if their prices are higher than that of used gas powered vehicles, many auto experts see going green as the way of the future. States like California and Washington are mandating that all passenger and light-duty vehicles sold in their state be electric by 2030 and 2035, respectively. Additionally, the U.S. government has announced a federal tax credit for used EVs as part of the Inflation Reduction Act. This could encourage used car shoppers to look more closely at used EVs.
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