More car buyers are shifting to EVs — but the reasons why are nuanced
The shift towards electric vehicles (EVs) is occurring, but the motivations are complex. High transaction prices and interest rates are causing potential buyers to hesitate, despite rising gas prices. Additionally, concerns about EV ownership, such as range anxiety and infrastructure gaps, remain significant barriers.
- ▪The average transaction price for vehicles has been around $50,000, with March's average at $49,275.
- ▪High interest rates are making consumers reluctant to trade in their current vehicles for new ones, even with rising gas prices.
- ▪There is still a lack of complete infrastructure and knowledge around EV ownership, which continues to deter potential buyers.
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Those making the swap are already looking for a new vehicle, said Erin Keating, executive analyst and senior director of economic and industry insights at Cox Automotive. She noted that the average transaction price ha been around $50,000, with March's average at $49,275, according to Cox Automotive. "We know that interest rates are still pretty high," Keating said. "If someone is driving a car right now that is perfectly fine, but is incrementally experiencing higher gas prices per month, they're still not going to say, 'Let me trade that car in for a brand new payment at a higher interest rate, just because I might save a few bucks on gas.'"That makes this different from past gas price spikes, such as around 2008, Drury said. "That's when we saw insane stuff," he said.
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