Electric Cars Gain Appeal as Gas Prices Surge

Electric vehicle appeal grows as gas prices rise

Disrupted global oil supplies linked to war in Iran are prompting some car shoppers to consider electric vehicles as a way to avoid sharp swings in gasoline prices.

For current electric car owners, the recent jump in fuel costs has underscored one of the technology’s clearest advantages: they do not have to worry about filling up at increasingly expensive gas stations. For shoppers still driving combustion-engine vehicles, the price surge is raising a familiar question about whether this is the right time to switch.

Costs remain a key factor

How compelling that choice is depends on several personal factors, including where someone lives, whether they have access to a charger and how much they drive.

In the United States, prices for new electric vehicles have fallen, but they still average about $6,500 more than comparable vehicles that run on fossil fuels, according to Cox Automotive. From a strictly financial perspective, an electric vehicle makes the most sense for buyers who expect to save at least that much in fuel and maintenance over the time they own the car.

There are also factors beyond a simple cost comparison. One benefit that is harder to quantify is the sense of stability that comes from not being as exposed to oil-market disruptions and the geopolitical events that can send gasoline prices soaring.

More shoppers are researching EVs

There are early signs that rising gas prices are nudging more consumers toward electric models. Jessica Caldwell, head of insights at Edmunds, said some people appear to want to get off “the gas-price roller coaster.”

Research activity on Edmunds’s car-shopping site suggests that interest is rising. The share of people researching electric vehicles increased to 24 percent at the beginning of March, up from 21 percent in early February.

How long the war with Iran will last, and how high oil prices may climb, remains uncertain. But the latest spike in gasoline prices has strengthened the case for electric vehicles for at least some buyers.