Consumers across the United States and Europe are increasingly turning to used electric vehicles (EVs) as a hedge against rising fuel costs, driven by escalating tensions in the Middle East and a stabilizing pre-owned inventory, as oil prices approach a four-year high of US$100 per barrel.
The conflict, which erupted on Feb. 28, has disrupted key shipping routes that carry roughly 20% of global oil supplies. The impact was immediate at the pump: in the European Union, the average cost of petrol rose 12% to US$2.12 per litre between late February and mid-March.
“There is currently an electric car bonanza in the used market,” said Terje Dahlgren, analyst, Finn.no, Norway’s largest used-car marketplace. He noted that EVs have recently overtaken diesel models as the platform’s top-selling fuel type.
The US$4 Tipping Point and Consumer Psychology
In the United States, the national average gasoline price reached US$3.96 per gallon by March 23, 2026. According to BloombergNEF, US$4 per gallon represents a critical tipping point at which the total cost of ownership for EVs falls below that of internal combustion engine (ICE) vehicles.
“When oil prices rise, gasoline prices follow, and the math on vehicle ownership shifts quickly,” said Justin Fischer, analyst, CarEdge. He added that the visibility of gas prices influences consumer behavior more strongly than long-term cost calculations.
In Europe, a similar psychological threshold is defined at €2-per-litre. “As soon as you pass €2, it makes a lasting impression on people’s minds,” said Romain Boscher, CEO, Aramisauto. The company, majority-owned by Stellantis, saw its EV sales share nearly double from 6.5% to 12.7% in the weeks following the outbreak of hostilities.
Rapid Shifts in Online Demand
Search data indicates a sharp increase in interest in electrified vehicles. CarEdge reported a 20% rise in EV search traffic in the United States, with interest in the Tesla Model Y more than doubling.
European platforms report even stronger momentum:
In Germany, Mobile.de saw EV searches triple from 12% to 36% since early March.
In France and Portugal, OLX reported customer enquiries for EVs rising 50% and 54%, respectively.
In Sweden, Blocket recorded an 11% increase in EV sales and 17% rise in views during the first half of March.
“What is particularly telling is that EV interest was already trending upward before recent events. The instability appears to have accelerated a transition that was already underway,” said Christian Gisy, CEO, OLX.
The Rise of the Value-Driven Used EV
While new EV sales have slowed in the United States following the expiration of federal tax credits in September 2025, the secondary market is experiencing record engagement due to immediate availability. Unlike new vehicles, which often involve long delivery times, used EVs can be purchased and deployed immediately.
The market has also been influenced by the so-called “Hertz hangover,” after the rental company offloaded more than 30,000 used EVs, helping establish a new pricing baseline. In the United States, used EVs priced below US$20,000 are, on average, two years newer and have 40,000 fewer miles than comparable gas-powered vehicles.
“High gas prices definitely start the conversation with a consumer,” said Stephanie Valdez, director of industry insights, Cox Automotive. She added that the price premium for used EVs over gasoline vehicles narrowed to just US$1,334 last month.
Legislative and Infrastructure Headwinds
Despite growing demand, the US transition faces regulatory challenges. Several states and federal lawmakers are proposing annual fees of US$200 to US$250 for EV owners to fund road infrastructure.
Critics argue that a US$200 fee is equivalent to the federal gas tax paid on 1,087 gallons of gasoline—roughly the amount needed to drive 100,000 miles. Currently, 36 US states impose registration fees that result in EV drivers paying more annually than gasoline vehicle owners contribute through fuel taxes.
Global Impact and Outlook
The shift toward electric mobility is already reshaping global energy demand. EV adoption reduced global oil consumption by an estimated 2.3 million barrels per day last year, with projections suggesting this could reach 5.25 million barrels per day by 2030 if current trends continue.
“Considering the lead time of a vehicle purchase, we expect this momentum to continue as the market fully absorbs the impact of recent global events,” said Alastair Campbell, vice president of growth, Marketcheck.
Data from the mid-March Manheim Used Vehicle Value Index supports this trend, with the EV index rising 6.7% year over year, signaling that the so-called “EV winter” is giving way to a value-driven recovery in the secondary market.
