CARFAX saw its biggest surge in demand for electric vehicles in more than a year.
PALMETTO, Fla. — Chris McCathern said there was a time he never thought he’d own a Tesla.
Concerns about where to charge it and skepticism after driving gas-reliant vehicles all his life kept him apprehensive. However, he became more curious and the evolving technology continued to entice him.
The rise in gas prices, especially for premium gas, became the final straw.
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“My only regret is I should have got it a couple years earlier,” McCathern said.
Having driven his new Tesla for a month now, McCathern said he is saving money. As someone who drives dozens of miles for work, McCathern said it’s not just about the cash.
No gas station stops, no waiting in lines, and advanced navigation and driving features don’t make him regret his decision. Plus, there’s the self-driving feature, but McCathern stresses he still pays attention to the road.
“Just the little quirks that come with being a technology-driven car, it’s right down my alley. I would say it just made driving fun again,” McCathern said.
Some recent numbers may prove McCathern is far from alone when it comes to driving interest in electric vehicles and fuel-efficient cars amid higher gas prices.
Car listings from CARFAX show electric vehicle prices went up by more than $560 last month, making it the largest surge in EV demand in more than a year.
“Prices at the pump are so high, they’re driving the surge in interest with EVs and sales,” CARFAX Public Relations Director Em Nguyen said.
While there may be more demand in the short term, Nguyen said there is also the possibility that desire may fade long-term.
However, the abnormal gas prices Americans are paying for may linger much longer.
An end to the war with Iran or the Strait of Hormuz becoming secure may not signal an immediate end to the gas prices, said University of Tampa Associate Professor of Economics Abby Hall.
“There’s a big question about what types of infrastructure damage has happened as a result of the conflict and repairing or rebuilding out structures for oil transportation,” Hall said. “You’re talking about very specialized planning, engineering, very specialized construction, and those kinds of things take a long time and a lot of resources to plan and to implement.”
Hall said 20% of the world’s oil supply comes through the Strait of Hormuz, but oil markets are remarkably global and intensely interconnected.
In economics, Hall explains that the longer a price change remains in effect, the more people may change behaviors.
The spark in interest shows some progress after some numbers from last year indicate a dip in demand after federal EV tax credits expired.
“It’s a different side of the coin,” Hall said. “It’s not that the cars themselves look cheaper, but it’s because the alternative has gotten more expensive.”
The move to switch may seem controversial to some. McCathern said he has had his fair share of criticism but said he’s doing what’s best for him.
“We live in a country where you’re allowed to have those opinions and views,” McCathern said.
Data from CARFAX also shows used car prices climbing by roughly $1,500 in one month due to new models, tariff costs, and a tighter selection of used vehicles. Florida ranked as the top state that has the most “great value” vehicles.
As far as finding the best deal, Nguyen recommends consumers check vehicle history reports, be flexible with rising prices, and check warranties.
“This is a very volatile and fast-moving market, and so, being more informed and being more flexible, especially right now, is gonna be really important to finding those best deals,” Nguyen said.
