Consumers Gravitate to Hybrids
A study of Q1 used-vehicle sales shows many consumers are looking to minimize fuel costs but aren’t willing to go all electric and no longer have a tax break incentive to do so.
Subaru has started producing a hybrid version of its popular Forester model at it U.S. factory.
Subaru
As prices squeeze consumer budgets from most directions, many have been opting for used cars to handle inflation, and hybrids are the most sought-after option.
An iSeeCars.com analysis of nearly seven million 1- to 5-year-old cars sold between the first quarters of last year and 2026 shows hybrids are becoming a popular alternative to fully gas-powered models and purely electric models that can inspire range anxiety.
The automotive research provider found used hybrid market share jumped by 42% in the first quarter from a year earlier to 7% as gas market share fell by 3% to 89%. Meanwhile, fully electric model market share grew by 16% to about 4%, led by Tesla sales.
“Many people assumed the recent spike in gas prices would mean a resurgence in EV demand, but hybrids have proven to be the real benefactor of rising fuel costs,” said iSeeCars Executive Analyst Karl Brauer.
“Hybrids are selling faster, retaining more value, and growing their market share faster than electric vehicles, though Tesla’s EVs are also doing quite well.”
The company found that used hybrids are holding more of their pricing power than other segments, falling just 1.4% in the first quarter year-over-year compared to twice the rate for gas models. Electric prices fell the most at 3%, except for Teslas, whose prices were flat, iSeeCars reported.
Despite used lots holding more appeal for cash-strapped shoppers, even they are taking longer to sell, according to the study. It found that sales rates for all stripes are down. The average days on the market for hybrids was 54, the same as gas models, and 60 for non-Tesla EVs.
By contrast, Teslas took just 32 days. ISeeCars pointed out that consumers opting for higher-end models like Teslas are less price-sensitive and therefore didn’t rely on the federal EV tax credit that expired on Oct. 1. Overall used EV market share fell 20% since the expiration, reversing a surge of about the same amount a year earlier when the credit was spurring EV sales.
SAME FOR NEW IN CALIFORNIA: EV Sales Slide While Hybrids Climb
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