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Fuel-Price Shock Pushes Buyers Toward New and Used Electric Cars

Rising petrol costs from the Iran conflict have accelerated EV purchases while the durability of that shift depends on how quickly oil flows and retail fuel prices normalize.

Overview

  • New EV registrations across 17 major European markets jumped 34% year-on-year in May, driven by higher fuel costs and stronger buyer interest in fully electric models.
  • U.S. used-EV transactions rose about 24.7% year-on-year in May while average resale prices climbed to roughly $37,083 and days’ supply tightened to about 31 days.
  • Lower-cost Chinese models entering Europe, including recent small hatchbacks, are widening affordable new-EV choices and helping to mainstream electric ownership.
  • Industry leaders warn the recent surge could fade if petrol prices fall after oil flows through the Strait of Hormuz normalize, and analysts note a coming wave of off-lease EVs that could ease price pressure.
  • Consumers are benefiting from lower running costs and cheaper used-EV sticker prices today, but long-term uptake will hinge on fuel-price trends, charging access, and how new supply from off-lease returns and low-cost models reshapes availability.