Rising gas prices drive 74% of shoppers to consider more fuel-efficient models

With fuel prices remaining elevated, car buyers are beginning to adapt their shopping choices to fit their budgets.

Driving the news: More shoppers are considering smaller and fuel-efficient options and EVs, while the latter still have plenty of shoppers holding reservations about making the switch from ICE models.

With that: A Cox Automotive poll of 1,000 car shoppers shows 29% of would-be buyers are postponing a vehicle purchase because of gas prices.

The same poll shows that 74% are likely to consider a more fuel-efficient model, and 76% stated gas prices had a major or moderate impact on the type of vehicle they bought. 

Backing these results: Cars.com also noted the change, with more than “half of in-market shoppers report that rising gas prices have led them to consider a smaller body style, with Gen Z and lower-income respondents significantly more likely to be considering it.”

Some shoppers still lukewarm on EVs: As demand rises for hybrids, EVs remain a tough sale for some shoppers in the market. A recent JD Power study shows 26% of new car shoppers are considering EVs, but a significant portion of potential buyers still have reservations.

The percentage of buyers considering EVs increased in April by 3% from March, among the 8,154 respondents planning to buy or lease a vehicle in the next 12 months. 

What they’re saying: JD Power Executive Director of OEM and EV solutions, Brent Gruber, pointed out that concerns about fuel prices are the primary driver of the renewed interest in EVs.

While there is an increased interest, the number of consumers saying they are “very unlikely” to consider an EV has softened slightly in the past month, by 4% to 18%. And another 35% are in the “somewhat likely” category.

Barriers remain: The reasons for not jumping into the EV market vary. Price continues to be a major obstacle, with 42% rejecting EVs citing the purchase price.

Kelley Blue Book has the average new EV price at $55,211, more than $6,000 than the average new vehicle price of $49,025. A total of 56% of consumers were unwilling to pay any price premium.

Charging concerns also remain a major barrier, with 46% expressing worries about charging station availability. 

On the ground: Carey Williams, executive manager at James Woods Motors in Decatur, Texas, reported some additional interest in the smaller GM SUVs, including the Buick Envista, Chevrolet Trax, and the midsize Chevrolet pickup, the Colorado.

“We’re seeing more sales with the smaller SUVs, which are also more affordable, and that may be more of it than being conscious of the fuel economy,” Williams said.

He also stated the dealership’s sales of large trucks, including three-quarter tons, have not changed since the spike in gas prices.

He also oversees James Wood Hyundai, which is more in line with fuel-conscious vehicles. He stated there has not been an uptick in sales at this time.