EVs, Gas Prices and Inventory: What Car Shoppers Need to Know Now
A Market Under Pressure
Car shopping in 2026 is being shaped by strain on budgets, inventory and everyday costs.
In Q1, new-vehicle sales reached a seasonally adjusted annual rate of 15.6 million units, down 4.9% year over year, as affordability concerns and economic uncertainty led some shoppers to pause, especially those who do not urgently need to buy.
At the same time, supply remains constrained. New-vehicle inventory is down 3.5% year over year, while prices have climbed 1.4% compared to the same time last year.
The result is a market where shoppers who need a vehicle are still buying, and they are doing so more quickly.
A Familiar Refrain: Used Cars Are Moving Fast and Getting More Expensive
For many shoppers, used vehicles remain the most accessible option, but unfortunately, they are not getting any cheaper.
- Used-car prices are up 2.9% year over year.
- Inventory is down slightly, 1.2%, tightening supply.
- Vehicles are selling faster, with days on market down 5.4% year over year.
This dynamic is pushing shoppers to act quickly when they find the right vehicle. Even as overall shopping activity softens, serious buyers are moving faster, adding pressure to prices.
EVs Are Moving in a Different Direction
While much of the market is getting more expensive, EVs are trending differently.
The removal of federal tax credits left new EVs sitting on lots an average of 30 days longer than the same time a year ago even as OEMs scaled back production to try to right-size inventory. As a result, new-EV prices are down 11% year over year — largely offsetting the incentive once provided through the federal EV tax credit.
The used-EV market is also getting less expensive:
- Prices are down 2.1%.
- Inventory is up 14.2% year over year.
- Vehicles are selling faster, turning 18 days quicker than the same time last year.
For shoppers priced out of new EVs, used EVs are becoming a more realistic option. Many are relatively new with low mileage, averaging just 3.4 years old and 31,000 miles, which presents a compelling value for the right buyer.
Gas Prices Are Shaping Decisions Again
Fuel costs are once again influencing how consumers shop.
With national gas prices averaging just above $4 per gallon,1 shoppers are paying closer attention to long-term ownership costs, not just purchase price.
That shift is already showing up in shopper consideration, with 52% of shoppers saying rising gas prices are prompting them to consider a battery-electric or plug-in hybrid vehicle.²
Adoption still varies by region, often tied to fuel costs and charging infrastructure, but higher gas prices are bringing more shoppers back into the conversation around electrification.
The Takeaway
Today’s car market is defined by trade-offs.
Shoppers in the new-vehicle market face tighter supply and higher prices. Used vehicles offer slightly better availability but are getting more expensive. Used EVs are becoming more accessible as inventory grows and prices fall.
For shoppers navigating affordability challenges, that last category may offer an opportunity.
Used EVs combine improving availability, more accessible pricing and relief from rising gas costs. They may not be the right fit for everyone, but they are increasingly worth considering.
In a market where costs are rising and options are tightening, the best choice is often the one that balances price, availability and long-term value.
Industry Insights
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¹ Source: U.S. Energy Information Administration, Weekly U.S. Retail Gasoline Prices
² Source: Cars Commerce, Impact of Rising Fuel Costs survey (April 3-7, 2026), n=524; respondents planning to purchase a vehicle within six months
