Current:Home > reviewsIndexbit Exchange:Gas prices got you wanting an electric or hybrid car? Well, good luck finding one -TradeCircle
Indexbit Exchange:Gas prices got you wanting an electric or hybrid car? Well, good luck finding one
FinLogic FinLogic Quantitative Think Tank Center View
Date:2025-04-09 17:57:45
With gasoline prices topping $4 a gallon,Indexbit Exchange many drivers are looking for a car that will go farther on a gallon of gas, or maybe one that doesn't use gasoline at all.
Finding such a car, though, is not easy.
Electric cars and gas-electric hybrids are in short supply, and prices have been climbing rapidly. Smaller gasoline-powered cars are also scarce, as automakers have focused on building more lucrative pickup trucks and SUVs.
Take Lori Silvia, a landscape designer in Middletown, R.I., who's looking to replace her 2008 Ford Explorer.
She'd like a vehicle that gets better gas mileage but that can also accommodate her gardening tools, her dog and her stand-up paddleboard.
"I just like the feeling of something big and heavy," Silvia says. "I come from a family of small women, and we've all driven enormous cars."
But as of now, she's out of luck.
"I would love a hybrid SUV someday," Silvia says. "But right now, I don't feel like I can afford it."
America's love affair with SUVs and pickup trucks
SUVs and pickup trucks accounted for more than three out of four vehicles sold in the U.S. last year.
But consumers have become more mindful about fuel economy now that gasoline prices have surged to a record high, not adjusted for inflation.
Compact, gasoline-powered cars are typically less expensive and get better gas mileage, but supplies are tight.
That's because carmakers have prioritized building larger, more profitable vehicles as they have struggled with a shortage of semiconductors.
"If you're General Motors, you'd rather make a big SUV," says Pat Ryan, CEO of the car-buying app CoPilot. "A big Suburban might make you $10,000. There's no way to make $10,000 on a $25,000 car."
Dealers say they are still seeing strong sales of SUVs and pickup trucks, although they are on the lookout for any big shift in consumer demand.
"In previous times, when gas [prices] spiked, people reacted quickly," says Pete Swenson, senior vice president at Walser Automotive Group, which runs a string of dealerships in Minnesota, Kansas and Illinois.
"And then when gas went back down, it seems like they switched back," Swenson adds.
But interest in electric cars is rising
Americans are also increasingly looking at the option of going electric.
Zoe Wise, for example, is giving more weight to her husband's desire for an electric car, now that they're paying $4.59 for gasoline in Anchorage, Alaska.
"I always thought that's a little bit of a luxury. I don't know if that's something we need to get," Wise says about electric cars. "But now we're looking at it a little bit more seriously."
The couple is currently sharing a single subcompact car: a 2008 Toyota Matrix.
Wise is encouraged that the state of Alaska is planning to build a string of vehicle-charging stations on the highway linking Anchorage with Fairbanks.
But finding an electric vehicle is also tough, despite the rising interest.
Electric vehicles only make up just over 4% of U.S. sales at the moment, even as automakers are racing to produce electric versions of their current models or are introducing new ones.
The upfront cost of electric vehicles is also high.
Surging demand has pushed the price of used Teslas to $63,000 — a jump of $1,700 in a single week, according to data from the CoPilot app.
"There's a ton of demand in the market, but there just isn't the supply," says Ryan, the CoPilot CEO.
Used SUVs, on the other hand, have dropped in price by an average of $862 over the last month.
You can still buy an electric car
Still, it's possible to get an electric vehicle. It just requires some patience.
When Marlene Dempster's Audi died last month, she went looking for a replacement, without much success.
"It was so frustrating," Dempster says of the limited inventory of new cars. "I turned to try to find a used one, and that was even worse. Almost $50,000 for a three-year-old car? The used market is absolutely off the charts right now."
Then her neighbor got a new Tesla. Dempster took one drive in it and immediately ordered her own electric vehicle.
"Oh, it's amazing what those cars can do," Dempster says with a laugh. "The torque is amazing. And I just feel really good about not using petroleum."
Dempster felt even better a few weeks later, when the price of gasoline in Ventura, Calif., where she lives, soared to nearly $6 a gallon.
"Since I ordered my Tesla, the down payment has doubled and the price has gone up several thousand dollars," Dempster says.
She's not driving it yet though: She expects to take delivery of the car in about two months.
veryGood! (5)
Related
- Tree trimmer dead after getting caught in wood chipper at Florida town hall
- As the auto industry pivots to EVs, product tester Consumer Reports learns to adjust
- A Japanese domestic flight returns to airport with crack on a cockpit window. No injuries reported.
- Defending champ Novak Djokovic fends off Dino Prizmic to advance at Australian Open
- Google unveils a quantum chip. Could it help unlock the universe's deepest secrets?
- Spoilers! Why 'American Fiction' ends with an 'important' scene of Black representation
- Colorado spoils Bronny James' first start with fierce comeback against USC
- NFL fans are facing freezing temperatures this weekend. Here are some cold-weather tips tested at the top of Mt. Kilimanjaro
- Finally, good retirement news! Southwest pilots' plan is a bright spot, experts say
- NPR quiz goes global: Test your knowledge of milestones and millstones in 2023
Ranking
- A South Texas lawmaker’s 15
- ‘Mean Girls’ takes 1st place at the box office. So fetch.
- Friends scripts that were thrown in the garbage decades ago in London now up for auction
- Purina refutes online rumors, says pet food is safe to feed dogs and cats
- South Korean president's party divided over defiant martial law speech
- Top geopolitical risks for 2024 include Ungoverned AI and Middle East on the brink, report says
- Indonesia’s Mount Marapi erupts again, leading to evacuations but no reported casualties
- Prada reconnects with the seasons for its 2024-25 fall-winter menswear collection
Recommendation
Nearly 400 USAID contract employees laid off in wake of Trump's 'stop work' order
Convicted former Russian mayor cuts jail time short by agreeing to fight in Ukraine
Mia Goth Sued for Allegedly Kicking Background Actor in the Head
Wife of slain Austin jeweler says daughter-in-law Jaclyn Edison got away with murder
Skins Game to make return to Thanksgiving week with a modern look
Purina refutes online rumors, says pet food is safe to feed dogs and cats
Chiefs vs. Dolphins highlights: How Kansas City shut down Miami to win frigid wild-card game
A royal first: Australia celebrates Princess Mary’s historic rise to be queen consort in Denmark