Fuel prices are not the driving force behind EV sales

The latest sales of electric vehicles presented a grim picture – at least for the new EVs. Sales of new electric vehicles took a hit in the first quarter, falling nearly 28% year over year after the Trump administration rolled back the $7,500 tax credit, according to Cox Automotive.

Used EVs are moving elsewhere. And several accelerators have combined to increase the sales.

First-hand EV sales increased 12% compared to the same quarter last year, according to the same report by Cox Automotive. There is also a long-term urgency; Used EV sales rose 17% between the fourth quarter and the first quarter.

The high price of gas — the average price is more than $4 a gallon — has helped spur interest and sales of electric vehicles. But there’s another factor at play here when buyers look for cheaper options: the number of expired leases, The Financial Times reported. EV leasing was a popular choice in the early 2020s and since it ended, hundreds of thousands of pre-owned EVs are entering the market. And consumers are ready for them.

By the end of the year, EVs will account for 15% of all non-rental vehicles, double from 7.7% in the first quarter, the FT said.

The old economic principle of supply-and-demand remained intact; The rise in pre-owned cars helped lower prices, driving sales higher. This leads to pricing parity – or close to it – with internal combustion vehicles. According to Cox Automotive, the average price of a used EV is $34,821 compared to $33,487 for the same gas engine.