The recent spike in global gas prices, driven largely by geopolitical tensions in the Strait of Hormuz, has led to a notable increase in demand for used electric vehicles (EVs) across multiple regions. While new EV sales have struggled in some markets, particularly in the United States, the used EV segment is experiencing significant growth as consumers seek more affordable alternatives amid rising fuel costs.
In the United States, first-quarter data from 2026 shows a 12% rise in used EV sales compared to the same period last year and a 17% increase over the previous quarter. This surge comes despite new EV sales declining by 28% year-on-year after the expiration of federal tax credits that had previously incentivized purchases. High gasoline prices, which recently surpassed $4 per gallon for the first time in four years, are pushing many drivers toward electric options. Additionally, a wave of pre-owned EVs entering the market as leases expire is expanding the available inventory and driving down prices.
Industry experts note that the average price for a used EV has fallen to approximately $34,800, closely matching the cost of comparable gas-powered vehicles. This narrowing price gap makes used EVs a more accessible choice for many buyers who may have been deterred by the higher upfront costs of new electric models. Cox Automotive projects that hundreds of thousands of EVs will come off lease in the next few years, further boosting availability and affordability.
The trend is not confined to the U.S. In Europe, countries like the United Kingdom, France, and Germany report record-high interest and sales in electric vehicles. For instance, UK EV leasing inquiries jumped 36% following recent fuel price increases. Online platforms in France and Germany have seen significant spikes in searches and purchases of used EVs, with electric models gaining a larger share of total vehicle sales while traditional gasoline and diesel models decline.
Asia has also felt the impact of soaring fuel costs due to its heavy reliance on oil passing through the Strait of Hormuz. Countries such as South Korea have reported more than double the electric vehicle registrations compared to last year. Similarly, Malaysia and Pakistan have observed rising consumer interest in EVs, with electric rickshaws selling out rapidly in some areas. Nepal continues its strong adoption trend with electric vehicles making up a substantial portion of new car sales.
In Oceania, New Zealand recorded its largest week for EV registrations since late 2023, doubling previous figures within a short span. Australia’s growing EV market also saw renewed enthusiasm as consumers responded to climbing fuel prices tied to global uncertainties.
Despite these positive signs for used EV sales worldwide, challenges remain. Many consumers still express concerns about long-distance travel due to limited charging infrastructure and higher initial costs for new models. Nevertheless, with more affordable used options becoming available and growing awareness of fuel savings, analysts expect sustained growth in this market segment.
As global energy prices fluctuate amid ongoing geopolitical tensions, the shift toward electric vehicles—especially used ones—appears poised to accelerate. This development not only offers consumers relief from rising fuel expenses but also supports broader efforts to reduce carbon emissions and promote sustainable transportation alternatives.
