As gas prices skyrocketed in California last month, Irvine resident Marc Tan realized his Mercedes SUV was becoming too expensive to refuel.
He decided to save money at the pump and bought a used Tesla last month.
“I had to change my SUV,” said Tan, who works as a nurse. “It was too expensive.”
Tan bought two electric vehicles this year to avoid relying on fuel while taking his children to school and activities.
As the war in Iran reduces the world's oil supply, fuel prices have risen sharply across the United States. Average prices in California rose to nearly $6 per gallon, according to AAA, while national prices were slightly above $4. Gas prices in California have increased 30% since the beginning of the year, according to data from the US Energy Information Administration.
The trend has fueled renewed interest in electric vehicles, and those looking to save money on gas are also trying to save money on their cars by purchasing used vehicles.
Sales of new electric vehicles continue to decline following hits to the industry by the Trump administration, but used electric vehicles are bucking that trend because they now appear more affordable compared to new cars and used cars that run on gasoline.
Used electric vehicle sales increased more than 20% year over year in the first quarter of 2026, according to data from Cox Automotive.
Used electric vehicles now cost about the same as traditional used cars and often offer better value, experts said.
“High gas prices are causing people to look at what their options are and things are starting to turn,” said Jessica Caldwell, an automotive analyst with Edmunds. “You can get a pretty good used electric vehicle for under $25,000, which is not easy to get in the general market,” including electric and gasoline cars.
Electric vehicles depreciate faster than traditional cars, meaning buyers can get a good deal on a used electric vehicle that hasn't been on the roads for long.
Used electric vehicles are typically less than four years old and are equipped with modern technology such as driver assistance, heated seats, and Apple CarPlay. A wave of them is hitting the market as they come off leasing starting in 2023, a year of increased enthusiasm for electric vehicles and new models.
While former President Biden was in office in 2023, the federal government heavily incentivized the transition to electric vehicles.
A Tesla dealership with cars lined up in the parking lot in Long Beach.
(Eric Thayer/Los Angeles Times)
“It's not surprising that the used EV market is starting to accelerate, because it was about three or four years ago that the new vehicle market started accelerating,” said Mark Schirmer, director of industry insights at Cox Automotive. “We're starting to have better variety, better options and better prices.”
Used electric vehicles also tend to have lower mileage than their gasoline counterparts and are therefore a better value, Schirmer said, because EV drivers don't use them for long road trips to avoid having to stop and charge.
Sales of used electric vehicles increased 25% in the first quarter of this year, according to Cox. Sales of new electric vehicles fell 26% in February from a year earlier.
The electric vehicle industry has faced setbacks recently as the Trump administration reduced incentives for electric vehicles and dealer requirements, including removing a California ban on the sale of new gasoline-powered cars by 2035.
In response, major automakers such as Ford, Hyundai and Stellantis have cut back on their electric vehicle offerings.
Sales of electric vehicles plummeted after the expiration in September of a $7,500 tax credit for new electric vehicles and a $4,000 credit for used vehicles.
“There is no premium to pay for an electric vehicle on the used market,” said Karl Brauer, an analyst at iSeeCars.com. “The value is huge for used buyers, and when gas prices go up, that becomes a focus.”
On social media, car buyers and recent EV buyers share their reasons for switching to electric.
“Not having to deal with the ups and downs of gas prices is one of the benefits of owning an electric vehicle,” one Reddit user wrote last month.
Another Reddit user said it cost him $1.59 in total to charge his Ford Mustang Mach-E for six hours, reaching a 90% battery level.
In California, the appeal of a new or used electric vehicle is twofold: Gasoline prices are especially high and charging infrastructure is more developed than in many other states. Although electricity rates are rising in the state, many residents are turning to solar energy to provide their own power for their cars and homes.
Data shows that more people are buying electric vehicles even if they haven't already.
Cars.com saw a 25% increase in searches for used EVs from late February to the end of March, and a 23% increase in searches for new EVs.
“I don't see how else you can get a vehicle that's as new, as reliable, as safe and as affordable as a used electric vehicle,” said automotive analyst Brian Moody. “Add to that current gas prices, and it's a no-brainer.”
Teslas were the most searched vehicle among used electric vehicles on the site, according to data from Cars.com.
Tesla's sales have stumbled over the past year, hurt by industry challenges and reputational damage after Elon Musk became involved in politics. Many alienated Tesla owners sold their vehicles in protest, leading to an influx of them onto the second-hand market and thus lower prices.
Tesla was dethroned earlier this year by Chinese automaker BYD as the world's largest seller of electric vehicles, but for many Californians, Musk's flagship vehicles remain an obvious choice. They come with an extensive super charging network and widespread service centers. They also offer “Full Self-Drive” mode, which appeals to many buyers despite being under regulatory scrutiny.
Tan, who bought two Teslas this year when gas prices soared, said he is satisfied with his purchases.
“To me, Teslas are the safest and most reliable,” Tan said. “Gas has been absolutely too expensive.”
